George Soros is an international investment superstar. He is one of the wealthiest people in the world. He is currently number 32 on the Forbes List of billionaires. Soros spends most of his time working with his international foundations, but he still keeps up with the changing economic climate around the world. Soros recently sat down with Bloomberg.com and he talked about the threat of a global recession that may well be worse than the 2007-2008 mortgage crisis. Soros said this new global meltdown won’t be fueled by a housing market bubble, but by several factors that are currently causing economies around the world to be close to contraction mode.
Mr. Soros told the Bloomberg interviewer that Europe is still in the chokehold of German austerity, and it is caught in the flood of refugees from Syria and elsewhere, European economic growth in the fourth quarter of 2015 was 0.3 percent.
The United States however has enjoyed a dropping unemployment rate, a strong dollar, and weak, but consistent, GDP growth since the meltdown. But Europe’s troubles and China’s missteps are going to create another scenario for the U.S. in 2016. Soros is predicting that the United States will join other countries around the world in a global recession that could take years to recover from.
The burden of student loans, the deflated energy stocks, the pending interest rate hikes, the threat of a Chinese devaluation, and the breakup of the European Union all spell global recession, and the politician is the U.S. are mum about it. The United States economy is not strong enough to keep their current economic growth alive, according to Mr. George Soros. Central banks around the world are keeping interest rates near zero, because public balanced sheets are overloaded with the debt that was accumulated when the world pulled out of the Great Recession.
People don’t thank economists for predicting a recession, and they don’t like politicians when it becomes a reality. The time to stop the damage is now, but Soros thinks now may be too late. All the signs point to a major slowdown in the second half of 2016. That will be right before the presidential election. Voters will have a chance to change the tide slightly if they elect a leader that knows how to stimulate the economy, but the odds are against that happening, according to George Soros.
Soros thinks The U.S. Has to step up and read the handwriting on the global wall, but he says U.S. leaders aren’t reading it, or they are reading it and ignoring it.