It was an historic and profitable day for George Soros and it became “Black Wednesday” for the United Kingdom. The day, September 17, 1992, when the British Pound Sterling lost 25 percent of its value compared against the American Dollar. While the entire economy of Britain was negatively affected by the drop in value of the Pound Sterling, the hedge fund of George Soros was reaping enormous profits from the transactions they were making; by betting on the decline of the Pound Sterling. In the history of investing and investors it was the day that George Soros, himself, made more than $1 billion. He and his hedge fund did invest $15 billion to be able to reap such a large return, but it remains as an investment that earned Soros, himself, a cool billion dollars in the course of one day’s trading. He, as director of his hedge fund, became a billionaire and his fund profited even more.
The machinations of the events leading up to this devaluation are detailed in a recent article in ValueWalk by the business staff, which is a shortened version of an article in Priceonomics. Read the Priceonomics article here.
Readers of these interesting and in-depth articles will more fully understand the movements of currencies and economies and how each country is connected to others. While readers may not know how to make a billion or a million from reading the story of George Soros, they will know some of the history of that investment and what led up to its becoming one of history’s most profitable investments on http://www.georgesoros.com/.
George Soros has lead a fantastic but dangerous life from his early experiences during the Second World War in his native Hungary to his times in England and then to his New York City experiences in investing, beginning in the late 1950s. George soros has amassed a great fortune and set up his Open Society Foundation in 1993 dedicated to helping democratic institutions around the world. He has little to do with his hedge fund now, and prefers to travel around the world lecturing at economic summits and writing books on economics and investing. Soros is one of the few billionaires who supports liberal causes on http://topics.wsj.com/person/S/george-soros/209, and as such the conservative media and especially Fox News often takes aim at this icon of the investing world. He is a man we should respect and cherish for his involvement in world economics and the work of his foundation. A man who will be 86 in August. We need to listen to him while we can.
Visit Project Syndicate to learn more about George.
The current market situation on http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says that we are in globally is quite reminiscent of a terrible economic time in the United States and other parts of the World, which happened in the year 2008, which is currently on the mind of one of the wealthiest billionaires on the planet. 2008 was a year of a lot of troubles when you look at the financial market globally, as things got pretty bad economically, which was called ahead of time by George Soros. He has stated that the current situation in China, as their economy is starting to sputter and is slowing down in production, looks very similar in terms of potential for a crisis that we experienced eight years ago.
One of the biggest ways that he has capitalized in his life is by figuring out when a certain monetary unit that a country is using is going to go up or down, and making financial investments as a result. George Soros has made billions of dollars doing this type of thing, and the best part as it applies to his predictions is the fact that he has been very accurate. He stated that there was a big problem on http://www.cnbc.com/2016/04/12/soros-european-union-in-mortal-danger.html lurking before thinks took a big dive in the year 2008, and even more recently he signified that there was a big threat involving Europe and Greece five years ago. The thing to realize here is that the events that he is talking about are absolutely predictable, and also that he is not stating that a certain outcome is going to happen for the most part. In 2011 the problem got figured out better than expected and a lot worse things could have happened, but George Soros still managed to see that there was a big problem and put out statements about it.
China finds themselves in a time where their economy has failed to figure out how to expand anymore. They are following the same sort of pattern that the United States experienced when we industrialized the country and eventually hit a point where we could not expand much anymore, as well as started to see the dollar devalued. The Yuan, which is Chinese currency, is dropping, which is a reason for concern when it comes to investing. There is no question that investing in Chinese businesses is going to be risky, as they are devaluing their currency, and there could be problems that hit all sorts of countries that work with them and buy their products. China is absolutely immersed in global trade, meaning their overall economic standing and the state of their currency can dramatically affect the rest of the planet. This is something that is abundantly clear when you really look at the situation, what has transpired and what is in front of China, so George Soros looks to be accurate again when he says that there may be a big crisis in the near future.
Learn more about his profile at forbes.com
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.