Bad news has a tendency to travel fast, and the current condition of the global economy is bad news, according to news media reports on http://www.marketwatch.com/story/george-soros-heres-my-plan-to-solve-the-asylum-chaos-2015-09-29 around the world. The phrase “economic collapse” is being used more and more in the press, and when countries like Brazil, China and Russia are mentioned economic collapse is too light a description for what’s happening in those countries. According to Hedge Fund investor, humanitarian, and investment advisor, George Soros, the world is in for a rude awakening. Parts of the world are aware of the signs that point to a global recession that may be as devastating as the 2008 financial collapse, but most Americans aren’t aware that a perfect storm is brewing, and the United States is heading towards it.
George Soros doesn’t sugar-coat his predictions nor does he make predictions based on speculation or rumors. Soros is one of the top economic minds in the world. Mr. Soros has made more than $32 billion investing in assets that other investors overlook. When he bet against the pound sterling in 1992, other investors called him crazy. But Soros believed the pound was overvalued on http://www.investopedia.com/university/greatest/georgesoros.asp, and he was right. He made a cool $1 billion on that investment, and he hasn’t had a misstep since. The Soros hedge fund is one of the most successful funds in the market. It has consistently produced returns of more than 20 percent a year for the last 10 years.
Even though most Americans think the U.S. economy is doing well, the truth is it is sluggish. Consumer sales are off, and corporate profits are down. The consumer market makes up 70 percent of the U.S. gross domestic product, and there’s not enough growth in that market to produce better economic figures. The global and the U.S. economy started to slow down at the end of 2015, but Soros has been predicting a global recession since 2012.
The signs that the George Soros prediction is becoming a reality are on every continent. Brazil is experiencing the worst recession since 1901, and investment firms like Goldman Sachs are calling what’s going on in Brazil a “depression” not a recession. And the economic situation in Venezuela is worse. Argentina is trying to pull themselves out of debt by offering $12.5 billion in debt bonds in 2016. The situation in Europe isn’t much better. The collapse of the Italian banking system is real, and the government is trying to come up with a plan to rescue their banks. The Greece debacle was bad enough, but Italy has the eighth largest economy in the world and bailing out Italy isn’t going to be easy for the European Union.
The banking systems in France and Austria aren’t much better, and that is why Mr. Soros’s prediction has bankers pressing the panic button. According to an article published by Bloomberg.com, the dreadful state of the European Union is one of the main reasons why a global recession is in the works. George Soros said he’s not waiting for his prediction to come true. He is watching it happen.