China is the reason to doubt optimism about the global economy

"The major uncertainty facing the world today is not the euro but the future direction of China." “[T]here is an unresolved self-contradiction in China’s current policies: restarting the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years,” writes Soros. “How and when this contradiction will be resolved will have profound consequences for China and the world.” Soros added in a recent article in project syndicate

George Soros : The Global Currency System is Controlled by China

Billionaire George Soros consider if the global currency system is “unbalanced” and “controlled” by China, which urged the Asian giant to let its currency appreciated.
Soros came as head of global finance at a meeting in Washington where he tried to prevent tensions from currency valuation, thus making a fragile economic recovery.
“One of the fundamental imbalances at the root of the financial crisis and the need to be corrected is the surplus (trade) infection in China and a large deficit in the United States,” Soros said, referring to the financial crash in 2008 on Sunday.
read entire article

George Soros On The Rise Of China

The legendary investor George Soros says the future of the global economy will depend on China.

George Soros: We Need A New Financial World Order and China should be part of it

George Soros: We Need A New Financial World Order . Interview with the Financial Times

George Soros :"I think this would be time because you really need to bring China into the creation of a new world order, a financial world order. They are kind of reluctant members of the IMF. They play along, but they don’t make much of a contribution because it’s not their institution. Their share is not commensurate … their voting rights are not commensurate to their weight, so I think you need a new world order that China has to be part of the process of creating it and they have to buy in. They have to own it the same way as, let’s say, the United States owns the Washington consensus, the current order, and I think this would be a more stable one where you would have co-ordinated policies. I think the makings of it are already there because the G20, in agreeing to peer reviews, effectively is moving in that direction"



and about the Dollar George Soros said :"Well, certainly a decline in the value of the dollar is necessary in order compensate for the fact that the US economy will remain rather weak, will be a drag on the global economy. China will emerge as the motor replacing the US consumer and, of course, it’s a smaller motor because the Chinese economy is much smaller. So the world economy will have less of a motor, so it will move forward slower than it has in the last 25 years. But China will be the engine driving it forward and the US will be actually a drag that’s being pulled along through a gradual decline in the value of the dollar. So there would be a slow decline in the value of the dollar. A Managed decline. That would be the adjustment that it needs to be accomplished. Now it could actually get out of hand and certainly the fear of inflation will precede inflation itself."

Tags:
soros federal reserve new world order bush obama china geithner bernanke dollar gold sdr greenspan ron paul