This Thursday, voters will decide if Great Britain should leave the European Union. George Soros is urging Britain to stay in the European union. George Soros is a well-known, self-made billionaire and is known as one of history’s most successful financiers. He is a strong advocate of human rights and democracy internationally. He is the founder of Soros Fund Management, LLC which contains $29 million in assets. He is known for his support of liberal causes and has already donated $7 million to Hillary Clinton this election cycle.
Soros went on record stating that “A British vote to leave the 28-nation European Union could severely damage living standards and trigger a plunge in the British pound- more than what happened on Black Wednesday 24 years ago”. He went on to say that the pound could fall at least 15% and possibly by more than 20%. George Soros predicted a steep fall in the pound at first if Britain exits the Union.
Noted in the article just discussed, and once again here, David Beckham stands in solidarity with George Soros in his support of “The Remain Campaign”. In fact, the Remain group has the backing of many celebrities and artists. Whether that has much bearing on Thursday’s vote remains to be seen.
Brexit wound: UK vote makes EU decline ‘practically irreversible’, Soros says
“The Brexit crash will make all of you poorer-be warned”, said George Soros in The Guardian. He went on to say, “My 60 years of experience tells me the pound will plummet, along with your living standards, The only winners will be speculators”.
Soros’ opinion is not well accepted by the British media and financial analysts. George Soros is trying to warn those in support of “Brexit” that the financial implications will be far greater than they are currently expecting. He offered his opinion that not only would there be an immediate income loss but also a steep decline in the value of the pound. Soros’ naysayers feel that the devaluation would not be a bad thing and cited past history when that exact situation occurred and the devaluation actually ended up being a benefit and not a disadvantage. Soros carries the strong opinion that although a select few would get rich from a “Brexit”, the majority will end up being poorer. He has tried to make his voice heard and hopes that voters will at least be able to see the potential consequences before casting their vote on Thursday.
Learn more about George Soros:
Investors have been cautioned owing the impending financial crisis in the global markets. George Soros uttered these words at an economic forum that was held in Sri Lanka. With China struggling to establish a new growth model, devaluation of its currency is shifting problems to the world. Developing nations are finding it a challenge to return to positive rates of interest. Soros asserted that the current market environment is similar to the characteristics of the markets prior to the 2008 financial crisis.
In the first week of the year, stock markets, commodity markets and the global currency have experienced myriads of challenges owing to the plummeting value of the Yuan. This situation has raised concerns over the stability of the Chinese economy given that it has been shifting from its core business of manufacturing and investment. Currently, the economy is dependent on consumption and services. It is imperative to mention that close to $42.5 trillion has been wiped from global equities value. This comes even as losses deepen in Asia.
Soros argued that China was facing an uphill task in adjustments. In the recent years, Soros has warned of a similar crisis to that of 2008. Between 1969 and 2011, Soros’ hedge fund firm registered gains of an average of 20% per year. According to Bloomberg Billionaires Index, Soros has a net worth of around $27.3 billion. His career began in 1950s while still in New York. His investing prowess was recognized in 1992 after netting $1 billion in a bet that forced the U.K. to devalue the pound. Most measures of volatility have been surging with VIX, Nekkei Stock average volatility index and Merrill Lynch Index showing an increase of 13%, 43% and 5.7% respectively.
China’s Communist Party has made pledges of increasing Yuan’s convertibility before 2020. They have also promised to discard capital controls in a gradual manner. Irrespective of interest rates being cut by the People’s Bank of China and investment of billions of dollars in the economy, the economy remains weak. This information was reported on Bloomberg as cited in the link below http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says
George Soros founded open Society, which is a network of projects, partners and foundations. The idea of the foundation was elicited by the need to respect rights of the people, government accountability and monopoly of truth. Soros was instrumental in creating the Central European University, which seeks to promote critical thinking. The foundations have been on the forefront of providing school fees to different promising students from various parts of the globe including marginalized groups. This information was originally reported on Open Society Foundation’s website as explained in the following link https://www.opensocietyfoundations.org/people/george-soros
George Soros was born in Budapest. The communist domination in Hungary forced him to flee to England. He attended the London School of Economics for his undergraduate studies. He managed to accumulate a large fortune when he established his investment fund in the United States where he settled after his graduation. This information was reported on George Soros’ website as elaborated in the link below http://www.georgesoros.com/the-life-of-george-soros/