The global financial crisis of 2007-08 marks the worst economic disaster of the 21st century. It left many global economies on their knees, and its effects are still being experienced almost a decade later. An investment banker in George Soros saw it coming and warned authorities, but it was a case of too little too late.
In 2011, George Soros forecast another economic disaster in Europe as a result of a soaring debt crisis in Greece. A few years later, the Greek economy collapsed and dragged the entire European Union with it. Numerous attempts have been made by the regional bloc to dig Greece out of trouble with minimal results. A closer look at these two cases reveals the tendency to over-borrow money from local and international markets.
Internal and external borrowing on marketrealist.com allows countries to meet their growth and development motives comfortably. However, over reliance on debt leads to an imbalance that eventually topples even the largest economies. In 2007 for instance, the real estate sector in the US had a boom that prompted developers to take billions of dollars from investment banks. These debts went out of control and left minimal deposits in cash reserves.
The Chinese economy seems to exhibit similar traits much to the concern of George Soros and other economic oversight authorities. The Chinese economy started on a low in 2016 but has steadily improved over the months largely because of capital injection in the real estate sector. The credit markets sponsor these injections. Statistics indicate the Chinese debt almost doubles the global average of 1.4 trillion Yuan. Judging from these symptoms, Soros predicts the Chinese economy to be running on borrowed time.
Read more: George Soros: The Chinese Economy is Running on Borrowed Time
Elsewhere, George Soros utilizes his financial resources to bring about social and economic change to communities around the world. His philanthropy is made possible by the presence of a network of Open Society Foundations around the world. George Soros is the founding thinker of these foundations and also leads them as the organizing chairperson. Soros feels that his successes in the financial markets over the years’ act as a platform for his philanthropy and moral stand on tough issues.
These foundations operate in the majority of the countries around the world and root out social ills such as illiteracy, corruption, bad governance and human rights violations. Through these networks, Soros, and his partners have reached marginalized group, refugees in war-torn areas provided legal and educational support to needy families.
George Soros feels the world would be a better place if all nations and communities embraced their diversity and sought non-violence and creative means of conflict resolution. He also feels that human beings should be responsible for life and each other.
Learn more about impending credit crisis: