During 2008, the economy took a major downturn, and it has not fully recovered. While the economy is beginning to recover, not everyone is optimistic about the future of the world economy. According to some, there are worrying signs that are taking place. China was once an economic powerhouse that was growing at a rapid rate. However, this doesn’t appear to be the case anymore. There are changes to how the Chinese economy is operating. At first, there was tremendous growth in it’s industrial sector. This was causing their entire economy to blossom. This growth doesn’t appear to be happening in the way that it was previously. Instead, China is becoming more of a consumer oriented economy. Not only that, but the country does not appear to be creating any new avenues for growth. The famous billionaire George Soros thinks this is going to create serious problems for China’s economy. He believes that this will have a ripple effect on the entire world’s economy. In fact, he believes that it could cause a situation as serious the crash of 2008! He actually believes that this current situation has a great deal of similarities to the crash of 2008.
Recently on Bloomberg, George Soros has given a speech in Colombo, Sri Lanka. This speech detailed what he feels is going to happen to the world economy. The predictions are quite alarming, indeed. The Yuan has taken a nosedive, and this could potentially impact upon other currencies. The Chinese stock market is not doing well, and this has led to financial losses. Additionally, forecasts of unpredictability in the markets appear to be looking quite negative. The worst is the Nikkei Stock Average Volatility Index, which has gone up 43 percent. The Chicago Board Options Exchange Volatility Index also has been on the rise, and it is up by 13 percent. These two measures are seen as quite reliable, and the fact that they have increased is alarming. George Soros feels that this is increased evidence that the economy is headed for a downturn, similar to 2008.
This is not the first time that George Soros has predicted on Bloomberg an economic catastrophe. He also felt that the Greek crisis could lead to a global economic crash, and he felt that could be worse than 2008. He warned of this potential crisis in Washington, DC.
We can only hope that the predictions of George Soros do not come true. The world economy has begun to bounce back from the crash during 2008. However, this crash could potentially lead to disastrous consequences for numerous people. It could potentially lead to a large number of people being out of work. Also, numerous investors could lose large amounts of money.