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Sunday, October 25, 2009

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

Recovery bound to be Flat : George Soros

George Soros: The global recovery is "bound to be flat" because China is now the world's motor and it's a "smaller, slower" motor than the U.S. was, said the famed financier and chair of Soros Fund Management. (As an aside - and it's a big one given his track record - Soros said weakness in the dollar has become "a bit overextended" and observed the short-dollar trade is "extremely crowed.")


Source : Yahoo Finance

There is an asset bubble : George Soros

Soros, who runs hedge fund firm Soros Fund Management and has made his reputation with bold currency bets, said the U.S. dollar ought to be falling in value against the Chinese currency to allow the United States to contain its current account deficit.
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George Soros was born in Budapest, Hungary, in 1930. His father was taken prisoner during World War I and eventually fled from captivity in Russia to reunite with his family in Budapest. Soros was thirteen years old when Hitler's Wehrmacht seized Hungary and began deporting the country's Jews to extermination camps. In 1946, as the Soviet Union was taking control of the country, Soros attended a conference in the West and defected. He emigrated in 1947 to England, supported himself by working as a railroad porter and a restaurant waiter, graduated in 1952 from the London School of Economics, and obtained an entry-level position with an investment bank.

In 1956, Soros immigrated to the United States, working as a trader and analyst until 1963. During that time, he developed his own theory of markets called 'reflexivity', which he has laid out in his recent books THE ALCHEMY OF FINANCE and THE CREDIT CRISIS OF 2008 AND WHAT IT MEANS. In 1967 he helped establish an offshore investment fund; and in 1973 he set up a private investment firm that eventually evolved into the Quantum Fund, one of the first hedge funds, through which he accumulated a vast fortune.