George Soros is not the kind of man that speaks just hear himself speak. When Soros speaks the world listens because he talks about issues that other people in important positions don’t like to talk about. Mr. George Soros, the humanitarian and hedge fund billionaire, warning people about a global recession for the last five years. When Soros first mentioned a global recession, no one except for a few economists took him seriously on opensocietyfoundations.org. The news that China was beginning to feel the pressure from a drop in their manufacturing numbers wasn’t big news back then. And the fact that China was on the verge of pushing Brazil into one of the worst recessions in their history was not news either.
But those issues and a lot more have surfaced in the last four years. China is dangling off their own recessionary cliff, and the rest of Asia is dangling with them. The famous BRICS nation came unglued, and as George Soros mentioned when he spoke at the recent Sri Lanka economic summit, Europe has its own set of issues. According to bloomberg.com Mr. Soros thinks the United States and the other developed nations that are not officially in a recession are about to cross the recessionary line by the end of 2016. The signs of a major slowdown that rivals the 2008 recession are popping up everywhere.
The European Union is another hot spot for spreading a recession globally. Europe’s economy has been suffering for a couple of years, and the migration crisis has exacerbated the EU’s economic woes. George Soros told summit attendees that the European Union could collapse if there isn’t an equitable resolution to the migration crisis as well as the terrorist attacks. Most European Union members are flying flags of nationalism and the rash of border closing go against the principles that are the foundation for the EU.
One of the disturbing aspects of the George Soros prediction is, there isn’t a solution that works for the mess that continues to threaten economic growth on the planet. The factors that create recessions aren’t set in stone. One country might experience certain issues, and their economy continues to grow. While another country with the same issues has an economic downturn that may result in a deep recession. China’s issues stem from deep-rooted flaws in their manufacturing base as well as their inability to build a consumer market that wants to but their products.
The recession in Brazil was the result of doing too much business with China, and when China started to shake from its own self-induced problems Brazil fell into a recession. Mr. Soros thinks the same type of fall is in store for other countries in 2016.