Many investors are wondering if they should be nervous about the current economic situation in China. The value of the yuan is decreasing at an exceptionally high rate. In just the first couple of days of January 2016, over $2 trillion was wiped from the value of global equities. On January 6, 2016, the losses deepened in Asia and caused trade for the rest of the day to come to a complete stop.
George Soros has warned that the current economic situation echoes what happened in 2008. He has advised investors to exercise caution. He mentions that part of the problem is that China has gone from investing and manufacturing toward services and consumption. Steps are being taken by the Chinese government to rectify the situation. By the year 2020, China’s Communist Party has pledged to increase the convertibility of their currency. Also, the People’s Bank of China has been cutting interest rates in an effort to boost the economy. In fact, interest rates are at an all-time low. Billions of dollars to have been pumped into the economy by a local authorities. There’s a chance that things could improve, but George Soros is sure an economic crisis is on the way.
George Soros has been right in his predictions in the past. For example, in September 2011, he said that the economic crisis that was going on in Europe was worse that what happened in 2008. Many would agree with this. Some of his predictions have earned him a lot of money. One example of this is what took place in the year 1992. He bet that the United Kingdom would have to devalue the pound. He proved to be right and walked away netting $1 billion.
Besides turning to him for financial advice, many admire George Soros for the outstanding work he has done in philanthropy. Not too long after starting his career in New York City in the 1950s, he began doing philanthropic work that benefited people in many countries. One example of this is how he gave scholarships to black South Africans living under apartheid. He also took an interest in the Roma of Europe. He is responsible for the most concerted and largest effort in history to bring them to the mainstream. He provided educational opportunities not only for young Roma who were outstanding students, but also for refugees and young individuals from marginalized groups.
George Soros is well known for his work with the organization Open Society. This organization promotes the idea of living in an open society where each individual’s rights are respected and the government is accountable. George Soros feels that his financial success obliges him to take a stand on controversial issues and to do good for others.