China’s Economic Slowdown Is Going To Produce A Serious Global Recession According To Investment Expert George Soros
Brazil and China enjoyed a profitable export-import relationship for several years, but that came to a screeching halt when China’s manufacturing sector began to break down. The once great manufacturing base that made China an international powerhouse fell victim to capitalism. The Chinese created a different version of capitalism, but that version is still capitalism with a communist twist. When the manufacturing sector started to stumble, the consumer sector of the Chinese economy wasn’t ready to pick up the slack, so the 7.5 percent annual GDP growth started to go the other way. Most economists and billionaire investor George Soros think China’s growth will be less than 3.5 percent in 2016, and the experts say that is a recession, and it’s only going to get worse.
George Soros was called “the man who broke the Bank of England” when he bet the pound sterling would depreciate in 1992 on Bloomberg. Soros has been very vocal about China’s role in a global recession. In fact, Soros believes many countries are already feeling the effects of the Chinese meltdown, and the rest of the world will feel it over the next 18 months. George Soros told a group attending an Asia Society event in New York recently that China has a plethora of issues to deal with, and it’s going to have to use trillions of dollars in capital reserves to fix them. China has already used billions of dollars of capital reserves to keep their stock market alive and to stop their currency from devaluating on the foreign currency exchange.
Mr. Soros is the 32nd wealthiest person in the world, according to Forbes Magazine. Mr. Soros uses his wealth for humanitarian causes on https://www.opensocietyfoundations.org/people/george-soros as well as for political and economic improvements around the globe. He also bets on what he considers a sure thing. His most recent bet is against China’s currency. George Soros thinks the Chinese banks are in trouble, and it’s only a matter of time before their enormous debt catches up with them. George Soros is betting that the yuan will depreciate by at least 30 percent in the next two years, and many investors are making the same bet.
Whether Soros makes another billion or two on this new bet on biography.com is not the reason he is speaking out and warning the United States and the world that a global recession that could be more damaging than the 2008 crisis is in the works. Some people in the United States may think the U.S. economy is healthy, but a 1.3 percent growth rate isn’t healthy. When all the factors are considered, the United States could feel the impact of this Chinese economic storm sometime this year, according to Soros.