George Soros knows something about vicious cycles. As the manager of one of the most successful hedge funds in the world, Soros deals with vicious investment cycles all the time. Soros knows when to Hold’em, and went to fold them when it comes to investment assets. Soros also knows that investments in emerging markets have been the folding kind for almost three years. He also knows that China is manipulating it currency in order to make its exports cheaper. But it’s not working. Soros also sees corporate earning dropping, and the stock market acting like it’s on drugs. All those issues spell one thing to Mr. Soros. They spell a global recession.
In a recent Bloomberg.com interview, Soros said the weakening of emerging market economies is causing their currencies to fall against the dollar. That should help their export business, but at this point in time, it is making their debt crisis worse. Every time the Chinese yuan, the Brazilian real or Indonesian rupiah goes down against the dollar, it makes it harder for the companies in those countries to repay their debts. It is one of those vicious cycles Soros is familiar with.
But most people don’t understand how those issues could affect the United States economy. After all, exports to these emerging markets are just a small enough piece of overall American economic growth rate. Some economists say that it would take an all-out emerging market collapse to really impact United States growth. So in a normal reality, the health of emerging markets, a strong dollar and a drop in oil prices shouldn’t make a difference in the United States economic health. All those issues were present in 1998, and the U.S. economy continued to grow in 1999.
But Soros says on Bloomberg there’s difference this time. The U.S. economy was much stronger 18 years ago. The U.S. economy was growing at a rate of more than 4.1 percent back then. From 2013 to 2015 the economy only grew by 2.1 percent a year. People are saving more and buying less now. The oil price drop in 2015 translated to move savings. In 1999, energy savings meant more money to spend. The other difference is the Federal Reserve is acting more as a shock absorber against inflation so growth can continue. In 1999, the Feds had a different approach to the U.S. economy.
So within the vicious cycle that Soros mentions there are a plethora of variables. Those variables often show up without warning. But the United States is getting a lot of warning signs, this time, around. But most of the signs are being ignored. Politicians want to talk about growth. Their political lives are based on growth. Talking about a recession doesn’t get them reelected.
John Oliver has parodied Donald Trump with his “Donald Drumpf” routine. As a result, a wikipedia page is now up on the Donald Drumpf character. One of the things that John Oliver said while making fun of name of “Drumpf” is that it does not sound as magical as “Trump”. Among the things he compared the name “Drumpf” to is the sound of an obese pigeon finding out that an Old Navy store is closed. This parody has taken off to the point that a Wikipedia page has been created specifically for the skit.
One thing that makes Wikipedia so popular is that anyone can create a Wikipedia page on any topic. Among the topics that Wikipedia pages are created are around businesses. However, business owners may not have time to create a Wikipedia page on their business. Fortunately, there is a Wikipedia editing service that is available to help companies and clients get perfected Wikipedia business page creation. This company is called Get Your Wiki. Get Your Wiki takes the time to set up a Wikipedia page based on what their clients want by hiring Wiki experts that are the best in their field. They also take the time to market the page so that people are aware of it.
While setting up a Wikipedia page can be challenging, there is another challenge to face with Wikipedia. Anyone can edit a Wikipedia page. In this case, there can be plenty of falsehoods present on a Wikipedia page. Get Your Wiki also provides maintenance services for their clients so they can update a Wiki page any time new information comes in or inaccurate information is present. They take the time to make sure that there is no false or misleading information on the client. They can also get rid of any information that the client doesn’t want up on the page. This leaves business owners and other clients a lot of room to conduct the type of business they need in order to make sure that they have a successful endeavor.
Soros Fund Management, the hedge fund owned by renowned billionaire and human rights activist George Soros, has dumped all NRG Energy, Chevron, and Chesapeake Energy stocks. The roller coaster behavior of energy stocks according to The Street, tossed about like reeds in an ever changing wind, distorting the normal operations of the equity markets, have resulted in corresponding jumps and sudden drops in crude oil prices. It is yet to be seen if Mr. Soros’ has seen a plunge that signifies an extended downturn. But, he has often seemed prescient in the past. Information about this event was published on The Street.
As US Crude oil continues to decline in the market after already dropping a whopping 73% to $29.64 per barrel since a high of $110 in 2014. This seems to have caused a drop in the general markets. The S&P 500 went down almost 6% in a year. For the average consumer, the lower energy prices are very helpful. And thus, Consumer Confidence remains steady. However, the oil industry accounts for over 9 million jobs, or about 5% of the employable population of the US.
Energy is a significant area for the S&P 500, accounting or approximately 33% of capital expended. These very low oil prices are predicted to cause a ripple effect of negative consequences in all industries. Not just the oil companies are affected. The major energy companies are expected to release very negative earnings reports this week. Some of these companies are severely distressed and at least one is having to fend off bankruptcy whispers. In the past, George Soros was called “The Man Who Broke The Bank of England”, because during the UK currency crisis of 1992 he did a massive short sale of $10 billion dollars in British pounds. His profit was $1 billion dollars. He is currently estimated to be worth about $24 million dollars.
The billionaire philanthropist George Soros was raised in Budapest, Hungary, where he was born in 1930. When Hungary was occupied by Nazi Germany in World War II, he barely survived. He escaped after the war to England, where he was given refugee status at the start of the Cold War. After graduating from the London School of Economics, he moved to the US. He became exceedingly successful in business and also became a strong critic of Cold War politics, most strongly against US involvement in Eastern Europe. He authored many different books on various of these types of subjects.
He is the founder of the Open Society, which connects all foundations and projects that are committed to creating an Open Society. This means human rights would be respected by accountable governments, and effective controls over monopolies. Read about George Soros Open Society and read George Soros’ Biography.