The current state of the financial world is beginning to look a lot like 2008, states billionaire George Soros on Bloomberg. While he does not like to rehash what others have said, China seems to be a big part of what is hurting the economic situation in the world. Their monetary unit is being devalued and they are struggling to find a new way to enhance growth and prosperity.
George Soros likens the present conditions to a crisis. China is losing ground and it is affecting the world. As they cease trade and up consumption there is a big hole made that needs to be filled to stabilize the markets and the economic conditions. The year 2008 may be done and gone but the financial conditions that existed then are baring their destructive head again.
Soros made his billions from the financial sector and hedge funds. He was educated in London and trained in the markets in New York City. As he slowly learned the ropes he invested more and eventually has become a noted name when dealing with financial matters. He is a respected author of many publications that surround politics and finance. Soros has learned how to read and predict the markets with alarming accuracy.
The control of the government over the Chinese financial market is somewhat to blame for the present situation. Communist in nature it does not allow for independent evaluations and free thinking. This has caused the manufacturing sector to stagger and the number of exports to drop. As the export sector wavers so does the Gross Domestic Product and hence the economy staggers.
The Communist Party has vowed to loosen the restrictions on manufacturing and work hard to bring the yuan back to its past status. This does not deflect from the fact that their present policy is hurting countries like India who depend on Chinese exports for their own financial health and stability.
The Chinese banking sector has even cut rates and moved billions of dollars into the economy to try to stop any long term harm. At present this simply does not seem to be working. The Chinese manufacturing sector needs to offer more products for not only export but also for purchasing within the realm of the Chinese country. Visit opensocietyfoundations.org to know more about George Soros
Consumerism is presently what is fueling this economy and that cannot sustain growth or prosperity. The Chinese people are charging and running up debt at alarming rates without a seeming plan for paying any of this debt back. The banks will soon become overwhelmed by outstanding notes and then we will see a crash of the market.
Overall the outlook is not good. Will 2008 revisit us in the form of a crash of the Chinese system?