China’s Economy Headed for the Collapse Warns George Soros


Posted by LLJ43 | Posted in Economics | Posted on 29-04-2016

A debt-propelled economy carries enormous risks of collapse according to economists. In most cases, the risk of collapse and recession has a domino effect on on the economies of other states around the world. A perfect example is the global crisis of 2007-08 that started out in the United States.

China has produced enough evidence of a looming recession that reminds George Soros of the crisis mentioned above in the US. Soros pointed to the 2.3 Trillion Yuan of Chinese debt as compared to the global median of 1.4 trillion Yuan. Such a figure raises concerns over the sustainability of such debt in future despite the Chinese economy performing well in the last two months.

Indeed, the real estate market has boosted the Chinese economy. However, investors in real estate borrow heavily from Chinese banks which have led to a scenario of more loans than deposits. Soros also pointed to unhealthy lending practice on between individual banks to facilitate investment portfolios. According to Soros, such activity may promote growth in certain sectors but eventually the economy will witness a crunch.

The insights George Soros provides in such matters cannot be taken lightly and have prompted responses from various quarters. Some Chinese authorities had called a bluff on the prediction citing that Soros had made similar forecasts before but turned out wrong every time. Other authorities in the Asia- Pacific region have also questioned the Chinese government’s role in initiating structural reforms to address future risks.
Read more: China’s Economy Headed for the Collapse Warns George Soros

George Soros founded the Soros Management Fund, which later became the Quantum fund upon his retirement. Many consider him a pioneer in the field of investment banking on owing to his reputation in London and New York in the 1950’s where most investment banks sprung. Soros has served the most prestigious firms in those cities before going into private practice. He has also inspired other generations of bankers in the market.

One of Soros’ career highlights came from his successful wagers on currencies such as the Sterling Pound that earned him a $1 billion in a single day. This event of 1991 is known as the day the Bank of England broke. George Soros also led the Soros Fund from inception to grossing billions of dollars annually until the global financial crisis of 2008 hit. Soros believes in knowledge sharing, and he gives public talks and lectures on matters of investment and economic development.

Writing also allows Soros to express his varied opinions one economic, political and social issues. He has authored several books including the Alchemy of Finance, The Tragedy of the European Union as well as essays on the refugee crisis in Europe. George Soros also plays an active role in the organization of the Open Society Foundations he founded.

Role of economists in the world


Posted by LLJ43 | Posted in Economics | Posted on 11-08-2015

Economists play a vital role in the world’s economy. It’s each country’s desire to prosper economically and the economists come in handy to provide the much needed advice on how things should be done to achieve the best outcome economically. Economists studies how a society can utilize limited resources to achieve meaningful gains in fulfilling its basic needs and in making ends meet financially. Economists serves in all sectors ranging from government, health, education, corporate firms, financial institutions and agricultural sector.

Economists help predict and explain certain economic issues using data collected. They analyze the data and come up with explanations regarding the issues together with recommendations on policies and plans to deal with the issues at hand. Economists formulates theories to help the concerned parties get a better understanding of situations such as increased inflation rate or high unemployment in a country. They play a vital role in the financial sector by providing a guide on how matters regarding a firm or an institution can be streamlined to realize great financial gains.

More so economists are pivotal in economic sustainability and in preparing annual economic forecast for governments. They help in interpreting past trends and how they can affect the well being of an economy in a certain fiscal year. Christian Broda an American economist and a Professor at the University of Chicago, is an example of an economist who lends the government a hand in interpreting various economic situations. He churns out several articles on economic issues which are published in major economic journals, hence providing an insight on impacts of several economic moves. He helps in projecting on the outcome of government spending, strength of local currency, effects of economic partnership of the US government with a new partner among many other things.

Economists also carry out major role in academic sector, where they work as lecturers in colleges and higher learning institutions. They impart knowledge to those pursuing economics courses and mould them to become future economists. They guide their students on several economics subjects hence broadening the area of issues to be covered and those that arise in the world of economics. Publishing books, journal articles for academic purposes also plays a role in creation of employment for those who publish and sale them.

Economists are important to the world and no one can afford to overlook their roles. Every sector of the economy requires an economist to lead the way, in a bid to reap higher financial gains. Offering solutions to matters of investment, how to keep good financial records, how to access loans with low interests to other complicated financial obligations and needs is so essential for an economist to be included.