The IMF And George Soros Believe A Global Recession Has Started

The IMF And George Soros Believe A Global Recession Has Started

According to the IMF and billionaire investor George Soros a global recession is in progress. American aren’t feeling it yet, but the signs that recession is in the air are everywhere. Let’s face it. The American economy grew by 1.3 percent in 2015, and in 2014, 1.5 percent. That’s not what anyone would call healthy growth for the largest economy in the world. India’s economy on http://www.marketwatch.com/story/george-soros-heres-my-plan-to-solve-the-asylum-chaos-2015-09-29 grew by more than 7 percent in 2015, and Mexico was not far behind them. But there are signs that India and Mexico are in the process of slowing down too. When all the numbers are put together, and George Soros has put all those numbers together, the bottom line spells disaster.

George Soros didn’t become one of the wealthiest people in the world by overlooking economic signs. Mr. George Soros was the man that predicted the pound sterling would depreciate in 1992. Soros bet the pound would drop in value by 30 percent while everyone else was saying the pound would remain stable. Soros made a $1 billion on that bet alone. Investors nicknamed Soros “The man that broke the Bank of England.” Soros is known for his candid approach to sensitive topics, and a global recession is a very sensitive topic in the United States especially after the 2008 financial meltdown on http://www.cnbc.com/2016/04/12/soros-european-union-in-mortal-danger.html. Soros told the group at the economic summit in Sri Lanka recently that this new recession could be worse than the 2008 Great Recession. Bloomberg.com published an article that listed the reasons that Soros feels that way.

There are several signs that keep popping up, according to Mr. Soros. China’s struggling economy is usually the first sign that George Soros likes to talk about. China had to use their capital reserves to keep the yuan from dropping on the foreign currency exchange in 2015, and the Chinese also used capital reserves to keep their stock market solvent at the beginning of 2016. The main issue that China can’t seem to get under control is their shrinking manufacturing base. China’s economy has grown the last 20 years because of their strong manufacturing sector, and that base is eroding due to commodity prices, labor issues and competition from other Asian countries.

The other fly in the global economic ointment is the European Union. The European Union is a disaster. The basic concept of open borders has disappeared because of the migration crisis and terrorism. The internal disagreements are becoming more public, and the euro can’t seem to appreciate because of the amount of debt the EU is burdened with, according to Soros. European countries are joining Brazil, Russia, and South Africa as nations that are in or beginning to go into a recession. When all the countries that are in recession mode are counted, the Soros prediction is more than a prediction. It is a reality. The United States just hasn’t experienced that reality yet.

China, Europe, and Latin America are setting the economic trend, and North America is one step behind them. But just like the Zika virus outbreak in Brazil, the U.S. doesn’t have a vaccine to prevent it from entering this new global recession.

George Soros’ Predictions For The World Economy

George Soros’ Predictions For The World Economy

 The market crash of 2008 had a multitude of severe and worldwide impacts. It caused the level of unemployment to skyrocket in many countries in the world. It also caused housing markets and stock markets to crash throughout the world. The world is still recovering from this crash, that has been dubbed the “great recession”. However, it is seeming like things may go downhill again, just as they have seemed to bounce back. A world renowned european investor, George Soros told Bloomberg he is seeing the potential for another severe recession. Very worryingly, he can point to a number of things that seem to be evidence of a coming crash.

China has been a very successful and powerful economy in recent times. However, it seems like this could be changing very soon. China’s economy has largely been driven by an active industrial sector. China has become a major center of production. However, there seems to be much less manufacturing taking place these days. Instead, the economy is being increasingly dominated by another sector. The consumer sector seems to be turning into the dominant sector of the Chinese economy. Unfortunately, this change seems to be creating sluggishness of the Chinese economy. It seems to be leading to a certain degree of economic instability in China. George Soros believes that as China’s economy struggles, it’s going to drag down the world economy. This will cause very serious problems throughout the world, according to George Soros.

There are scales that are used by investors to measure volatility of the stock markets. In the United States, there are two of these scales that are showing volatility increases. The VIX is one of these measures that is rising. The VIX jumped by more than 10 percent. Merrill Lynch also has a scale for volatility. This scale has also jumped in recent years. However, this jump has been significantly more modest, a little bit shy of 6 percent. In Japan, one of the major scales of market volatility truly is skyrocketing! The Nikkei Index is designed to measure the volatility of Japanese stocks, and it’s up by nearly 50 percent! Specifically, it’s up by 43 percent.

Visit Project Syndicate to learn more about George.

Additionally, he is noticing some issues in Europe. He is very concerned about what will come of the migrant crisis. He also is concerned about Britain’s threats of removing itself from the EU. He feels that this has the potential to drag down the economy of Europe, which could have serious and worldwide impacts. He is worried that the European Union might not stay together, due to the economic problems that are affecting Europe. If this happened, it certainly would have the potential to cause serious economic problems both in Europe and elsewhere.

http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says