Open Society Foundation is one of the organizations established by billionaire George Soros in 1979 when he decided he had enough money to give back to the society. George Soros is a lucky man in the community having and still carrying out his role as a hedge fund manager on http://www.investopedia.com/university/greatest/georgesoros.asp that allowed him to pursue the open society ambition in places where authoritarian forms of government exist. The idea of free society was based on the fact that the world is imperfect but having a chance of being improved.
His journey started in Africa particularly in South Africa where he supported the black students with scholarships at the University of Cape Town in South Africa. George Soros then proceeded to Eastern Europe where he helped dissidents to study abroad. Soros believes that his success in the financial market was a key driver that gave him a greater degree of independence than many people. His success in the financial sector allows him to take a stand on controversial issues.
One of the controversial issues on https://www.project-syndicate.org/columnist/george-soros Soros has given opinion recently is the similar characteristics of the current China’s debt-fueled economy and the U.S. economy in 2007-08. Soros has warned the investors about the current credit growth saying should be taken as a warning sign of a likely financial crisis in the future. Bloomberg survey shows that the predicted new credit in March was 1.4 trillion yuan, but the actual figures exceeded the median forecast reaching 2.34 trillion yuan. This level of debt on http://www.profitconfidential.com/economy/economic-collapse-george-soros-delivers-grim-warning-for-investors/ has confirmed that China is focusing the future of the economy based on growth and not controlling the rising debt.
Many investors might take George Soros seriously based on his experience in the financial markets. For instance, he broke the Bank of England in 1992 and gained $1 billion on a bet that U.K. was to devalue its currency. In 1997, the Malaysian Prime Minister Mahathir Mohamad called Soros a “moron” saying he wanted to wreck the regional economies during the Asian financial crisis. Recently, George Soros disclosed during the World Economic Forum in Davos that he has already placed a bet against the Asian currencies because it will be unavoidable for China to avoid an economic collapse.
China’s then responded these claims on its state-run Xinhua news agency that it is not the first time Soros has made similar claims about China’s economy. Soros has also expressed concerns about the China’s banking system saying that deposits are less than loans. He continued to say that this rising problem is making banks lend to each other thereby complicating the issue even further. The recent China’s government intervention according to Soros has only deferred the credit growth problem to one or two years, but the continued growth of the credit market is not good for the future of the economy.
Read more: George Soros Warns Investors Over growing debt in China’s Economy