Chinese Financial Problems Cause Concern For George Soros

The recent issues in the global financial markets on have proven to have gone through a confusing period of time for experts and investors alike as markets have proven volatile in the early months of 2016. Bloomberg is reporting the legendary hedge fund manager George Soros used an appearance at a New York conference organized by the Asia Society to detail the problems he seen are happening within the Chinese economy; most worrying for investors is the false bubble of growth George Soros believes Chinese officials are creating to prop up their economy.

Over the course of his career George Soros has become one of the most successful financial experts of all time with a personal fortune estimated on at greater than $25 billion. Soros has always maintained his need to help the people of the world, whether through his Open Society Foundations charity or through the advice he provides for investors.

The Chinese economy on has been growing at a fast rate through the last years of the 20th century and the first two decades of the 21st century; in recent years financial experts have predicted problems in China caused by an economy moving ever closer to a consumption based model will soon fall. Chinese officials have recently sought to prop up their failing economy by looking to provide credit to almost anybody who requests it, which has seen the reopening and continuance of failing and failed businesses. This rising level of credit has given the appearance of a continued period of growth, which George Soros believes will lead China down a similar road to that trod by U.S. officials prior to the 2008 economic slowdown that still affects areas of the world to the present day.

Along with many other financial experts George Soros has become worried by the ongoing explosion of credit that sees a 58 percent rise in the issuance of loans across China, which is coupled with a 60 percent rise in property sales. George Soros believes the continued use of credit is outstripping deposits in banks in China that will eventually see the economy collapse; the same path was taken by U.S. officials in 2005 and 2006 as the global economy was pushed to the collapse of 2008. Soros used his appearance in New York to explain his belief that the global economy will soon fall if changes are not made to the approach taken to the economy in China.
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