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.