There are a lot of people who are fighting over whether the UK should leave the EU, and a USA Today article explains how George Soros is warning against a recession if the UK leaves the EU. The problem is that the people of the UK are having a referendum on it, and they could leave the EU without knowing what they are doing to the world economy. George Soros believes that a recession will happen, and he is afraid that that could change things for businesses and people in the EU who are not thinking this through.
Separating the UK from the EU would push a large wedge into commerce, and George Soros believes that the biggest problem could be in economic volume and currency. Currencies around the world could start to fluctuate because of an exit from the EU, and that is a recession that could stretch across the world. George Soros is worried about the UK, but he is also worried that it could have a domino effect in other parts of the world where the economy was not that strong to begin with. The UK has a lot of trade partners, and they could all suffer because of just one misstep.
Brexit wound: UK vote makes EU decline ‘practically irreversible’, Soros says
George Soros – Project Syndicate
Exiting the EU has been a topic for a long time in the UK, and it is something that a lot of people want to do for selfish reasons. The people who are not looking at the situation from an economic perspective are making life a lot harder for the people in the EU who want to prosper. This is a major problem for the countries of the union who could suffer the most, and George Soros believes that currency trading could be hit the hardest. He made billions in currency trading, and he knows what could happen if volume changes in an instant. He does not want to see a recession, and he does not want the people of the EU to suffer simply because of changing currency values.
Learn more about George Soros:
One of the world’s richest billionaire oversaw financial crises in world trend market and warned global investors to take caution. George Soro said that China’s struggle and currency loss of value in a bid to change growth mode has shifted problems to the entire world. He also said that positive results to interest rates are a problem to the developing nations. He quoted the 2008 situation that is bound to recur. The situation resembles the previous 2008. He was very right as the situation had not been good in the world economy.
George Soros out cried that global stock, currency and commodity markets were on fire. The yuan value was declining adding to the China’s problems of change from manufacturing and investment to service and consumption. Close to 2.5 trillion dollars had been removed from global equities value and losses deeply affected Asia. China’s equities plunge stopped trade for some days. He said China’s major problem in adjusting the crisis reminded him of 2008 crisis. Soro had predicted of a similar to 2008 economic disaster and quoted the Greece-born European debt as catastrophe more dangerous than that of 2008.
George Soro is a renowned experienced business professional who can advise on global market trends from his experience. He has a vast knowledge base gained from the many years he has been in global market. His hedge-fund firm has been doing well for many years with hefty profit margins. His business venturing prowess made his firm to be rated the best investment by Bloomberg Billionaires Index. He has constantly gained reputation from his advisory role in the world market. The information is drawn from www.bloomberg.com.
In 1992, he predicted a crisis in the United Kingdom that forced the country to devalue the pound and it came to pass. Volatility measures are going up. The Nikkle Stock average Volatility Index that measures Japanese shares protection cost has risen to 43 percent in 2016, Chicago Board Option Exchange Volatility Index has gone up to 13 percent and Merrill Lynch index look forward to price changing up to 5.7 percent. The Communist Party of China has promised to increase Yuan’s convertibility by year 2020 and slowly grip capital control. Problems have continued to prevail in China’s economy even after a lot of money has been introduced into the economy and reduction of interest rates by the People’s Bank of China.
George Soro’s prediction of economic crisis in the global economies has come to reality with the tough times faced by nations from the leading to developing economies. This has destabilized most world currencies and the price of oil in the world market. His prowess is global financial market is therefore clearly displayed.