While the Chinese economy seems to be growing rapidly, Billionaire investor George Soros is not convinced. Soros said in a recent Bloomberg article that the situation with the economy is very much like the situation that was in the United States that led to a big recession in 2008. Soros has a fortune reported to be worth $24 billion, making him one of the world’s most wealthy men, and George Soros made that fortune in international finance and by making great moves based on economies around the world.
Soros said reports of a robust Chinese economy are deceptive, and he sees it as a danger sign. Officials had forecast on marketwatch.com that the Chinese economy would be worth 1.4 trillion Yuan in March, but when the figures came in, they were listed at 2.3 trillion. That much growth, that fast, is a sign that the government is putting growth as the highest priority and not doing enough to reign in debt. George Soros says that is what happened in the United States, when banks were lending money to cover bad debts instead of investing in actual growth. Just as the United States had a “hard landing” in 2008, he thinks China may have the same experience.
George Soros said banks are lending to other banks, and that the Chinese are pushing problems aside, but eventually they will have to be dealt with. China is also seeing great increases in real estate value, which again, is similar to the U.S. economy before the recession of 2008.
Soros has not been investing in China, and is pretty much betting against their economy. George Soros’ criticism has not gone unnoticed by China, who has published editorials in official media, dismissing Soros’ predictions as the same predictions he has made before about other economies. Chinese officials point to growth in various areas, and say concerns such as those voiced by Soros, are overblown and not a reflection of the real Chinese economy.
When Soros speaks about the economy on twitter.com, people listen, because he has been one of the most successful investors in history. He was born in Hungary, and was a Jew under Nazi occupation. After WWII he studied at the London School of Economics. In the early 1950’s he moved to New York City and started his business in international finance. His business grew rapidly, and he has made a fortune on understanding international markets.
Soros is also a supporter of Democratic politicians and liberal causes in the United States and around the world. He has also started an organization called Open Society Foundation, which seeks to support human rights and open governments around the world. He has contributed heavily to Democrats in presidential elections, and is doing so again in 2016.