Investors need to be very cautious as global markets face a crisis according to George Soros when he was talking to an economic forum in Sri Lanka. According to Soros, China’s struggle to find new growth model and the recent devaluation of its currency is already leading to problems in the rest of the world. Soros thinks that developing countries are facing a challenge to return to positive interest rates which was a similar situation in 2008. The global currency, commodity markets and stock are under great pressure in the first week of the year. With the loss of value of the Chinese currency (Yuan), almost $2.5 trillion was wiped from the value of global equities this year.
According to George Soros, the China’s adjustment problem is enough to be called a crisis. He believes that the serious challenge China is facing reminds him of the crisis of 2008. Soros had made a previous warning before. In September 2011 before a panel in Washington, he emphasized that the Greece to European debt crunch was being handled poorly regardless of it being catastrophic than the crisis of 2008. According to Bloomberg Billionaires, Soros hedge-fund firm gained about 20 percent in 1969-2011. Soros is started to be worth about $27.3 billion by the magazine. The article is found here http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says
Do people need to believe George Soros this time, the answer is yes but we may not be in the financial crisis yet? People have the right to feel worried that the economy is not in the right track and that something need to be done. George Soros is also the founder and chairman of Open Society Foundation, which involves various partners, project and foundations in more than 100 countries. Open Society is non-governmental organizations which Soros believes with make an impact in terms of promoting an open society where government is accountable, rights are respected, and no one has the monopoly of truth. For more information, the main website is available here https://www.opensocietyfoundations.org/people/george-soros
However, his organizations has been banned in Russia despite all the good intentions. In a statement released by the Russia’s general prosecutor’s office, two charity organizations owned by Soros – Open Society Institute (OSI) and Open Society Foundations (OSF) were banned for being deemed as ‘undesirable’ by the Russian state. The Russian government cited the two organizations OSI and OSF are a threat to the Russian constitution system and the security of the state. Soros has received similar criticism from the Hungarian government from his initiative to help the refugees. The Hungarian homeland accused Soros of supporting illegal immigration. Find more from this article http://www.cnbc.com/2015/11/30/russia-bans-george-soros-charity-as-security-threat.html
Despite all the criticism, Soros has been promoting democracy and access to information about the financial markets. His alarm about the financial markets is only meant to ensure governments make the right decisions that would not put the world into a crisis.