There’s a lot of trouble in paradise. Brazil is floating in debt. The Brazilian government is a mess, and the economy is contracting by a whopping 3.5 percent. The once great emerging market isn’t emerging anymore. It is sinking, and the King of Latin America is not alone, according to George Soros. Soros reiterated his 2011 prediction to a forum in Sri Lanka recently. That prediction is, the world is headed for another 2008 type downturn, and it may be worse than he expects, according to Bloomberg.com.
George Soros is a man that wears a lot of different hats. He is the chairman of the Soros Fund Management, a humanitarian that has built foundations all over the world, and a philosopher who earned his degree from the London School of Economics in the 1950s. Soros came to the United States in 1956, and he learned the ins and outs of hedge fund investing. In 1992, Soros decided to short-sell the pound sterling on opensocietyfoundations.org. He bet the British government would have to devalue the pound against other currencies, and he won that bet. He earned the title “The Man Who Broke the Bank of England” from that bet and a cool $1.2 billion. From then on, it was game on for Soros. Today, Soros is rumored to be worth more than $23 billion.
The George Soros prediction has been talked about in economic circles for years, but the reality of his prediction came to light in 2015. China’s massive economic engine started to sputter more than ever due to the lack of orders that kept their giant manufacturing system oiled. The Chinese yuan lost more than 30 percent of its value on the foreign currency exchange, and the Chinese stock exchange almost went belly up. It would have if not for the billions of capital reserve dollars the Chinese pumped into it to keep it on life support.
So Soros began to turn up the heat on his prediction that the world was in for another economic beating, and he used the dysfunctional European Union as another reason why an economic doomsday is fast approaching. When the European Union’s debt and inability to control its members is added to the Chinese meltdown that continues to eat away at emerging markets like South Africa, Brazil and other Asian countries the Soros handwriting is easier to read for non-economic majors.
Mr. Soros believes 2016 is the year that the world is going to realize that the global market is sinking in its own overvalued excrement. The signs are obvious according to Soros. They are so obvious that Soros is betting against the Chinese. His hedge fund is shorting the Chinese yuan, and investors like Soros are patiently waiting for the other worn out Chinese economic slipper to drop.