Billionaire investor Soros, the chairman of Soros Fund Management and the Open Society Foundation, has been a vocal supporter of Western assistance to Ukraine.
The country was thrown into chaos in 2014. Political upheaval ushered in a new government in Kiev and a Russian invasion led to the loss of Crimea to Moscow. Russian-backed separatists in eastern Ukraine unleashed intense violence.
Given these political and military crises which upended much of the country’s establishment, including its businesses and it was no surprise the Ukrainian economy faltered badly. By early 2015, according to Soros’ commentary in the New York Review of Books, the country was experience a balance of payments crisis, a public debt crisis, and a banking crisis.
Beginning at the onset of the crisis, George Soros was a frequent commenter. He repeatedly used his public profile both to condemn Russian aggression in Ukraine and to argue for a much stronger European response to the crisis.
As early as February 2014, Soros was writing op-ed pieces urging a unified European response to the crisis, noting how Russia had adopted a much more strategic posture towards Ukraine than the member states of the European Union had done. In particular, Soros argued that powerful German Chancellor Angela Merkel needed to act decisively to address the crisis.
While Soros continued to urge European action on the Ukrainian crisis throughout 2014, including this May 2014 article, he was particular vocal in early 2015, when the economic crisis reached a boiling point.
George Soros – Forbes
Perhaps his most poignant exhortation, co-written with the French philosopher Bernard Henri-Levy, waxed poetic about the birth of a “new Ukraine” in the wake of the Maidan uprising and Russian aggression. Addressing the need for an immediate tranche of $15 billion in aid from Europe, Soros argued that foreign support was required to give Ukrainian leaders the space to implement radical reforms.
Beyond that $15 billion tranche, Soros strongly supported a much larger package. This proposal, outlined in the New York Review of Books, was designed to create a stable situation going forward, allowing Ukraine to become desirable to investors instead of barely staying afloat.
At the same time, Soros recommended technical support to match the financial commitment. Such support would have, in Soros’ view, allowed Ukraine to apply the $50 billion investment more effectively, pruning the size of government and emphasizing government services that created space for businesses to grow and create jobs.
More than simply assist Ukraine, Soros endorsed Ñ despite somewhat mixed feelings Ñ sanctions against Russia for its’ aggressive posture towards Ukraine.
When Soros’ March 2015 policy recommendations were not heeded Ñ only a small tranche of funds was released, the country experienced dramatic pressure on its currency, and Russia and Ukraine reached the Minsk agreement and he again turned to his pen.
In an October 2015 piece, Soros urged German Chancellor Merkel to “do whatever it takes” to bolster the new Ukrainian government. As he had argued throughout the crisis, Soros again made the case that this demanded greater financial and technical support.
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China has the world’s second largest economy and is a powerhouse nation. While the Chinese have a financially strong and industrious economy; the country is starting to lose it economic standing. There are many reasons as to why China’s economy is slowing down and billionaire George Soros gives an explanations for these problems.
Soros is a man that understands business and the economy. He ranks as 30th richest person in the world on georgesoros.com and he has more wealth than many third world countries combined. Soros made his massive fortune through investments and betting against national currencies. One thing that George Soros does well is to analyze a country’s financial stability and then make investment decisions based off of what he sees.
When it comes to China, George Soros sees a bad situation. The first negative thing that Soros reveals about China has to do with its debt. China is having a hard time keeping its debt under control. George Soros stated that most of the money that banks are taking in is being used to cover bad debts and to keep failing enterprises in the black.
Another major problem that is messing up China’s economy has to do with the banks having out more loans and not enough deposits. Right now China is deferring this problem on Biography by having banks lend to each other but this type of activity can only be sustained in the sort run.
China’s housing situation is currently in a bubble. Housing prices are soaring and eventually this bubble will burst. This is similar to what had happened in the US before the recession of 2008 hit. China’s industrial output has significantly slowed down. When nations stop demanding goods this will cause producers like China to lose money.
Their money and businesses is no longer aiding the nation and since their departure; China’s economy is now suffering. Ultimately, China is going to have to make some major changes within it economy if they want to remain the world’s second largest economic competitor. George Soros also claims that if they do not make the necessary changes to keep their economy afloat, it will go into a recession.