Slashing of the Tongue: George Soros Discusses China’s Dwindling Economy

George Soros is no stranger to global and individual economies, and has based his life work on investing and establishing policies that, in hindsight, would make the world a better place. Regularly making predictions as to where a country’s economy is heading, Soros is rarely wrong–despite people wishing he was. The benefactor on recently stated that China’s current debt is reminiscent of the United States’ 2007-2008 economic crisis.

China’s Xinhua news agency brushed off billionaire George Soros’ assumptions by stating that he has predicted the same problem many times in the past, and that nothing came of it. In a rebuttal, Soros essentially said that, much like the 2008 downfall, an economic collapse will not happen overnight. He then went on to discuss the signs and what they will entail.

Focusing specifically on how China’s credit growth on figures are foreshadowing a bigger problem to come, the famous investor claimed that China’s government is prioritizing economic growth over the debt they are experiencing. George Soros then discussed how the banks are supplying money to unnecessary corporations, and how that money is crucial to reduce the growing debt. 

Often described as being in a war of words with the Chinese government, George Soros went out to discuss the Chinese real estate market. Believing that the continuously soaring market might be able to keep them from a collapse for a short amount of time, he did say that the overall fate of the country is part of a parabolic cycle. “It can reach a turning point later than everyone expects,” stated Soros.

Despite the heated debates on taking place between the government and the man who has the experience to back the idea that he knows what is to be coming, there is no denying the points that Soros made. Simply because something has not happened yet, it does not mean that it never will. Soros has decades worth of experience in banking, investing, economics, and human relations. With all of this in mind, it is crucial to not just brush off his predictions. The most specific question of all is to ponder what an economic decline in China would mean for the rest of the world.

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