Billionaire investor George Soros wants another Democratic in the White House, and he is putting his money where his mouth is. Soros donated more than $8 million to two Super PACs that is endorsing Hillary Clinton. The man who broke the Bank of England back in 1992 when he bet the British pound would depreciate hasn’t spent that kind of money on a candidate in several years. The last time Soros donated money was to keep George W. Bush out of the White House. The $24 million he spent in 2004 to stop Bush was not enough, but Soros thinks he is backing the right candidate this time. George Soros thinks Clinton is the only person that has enough experience to deal with the economic challenges that are in the works.
Another issue that Mr. Soros has been very vocal about is China’s financial chaos, and he thinks the worse is yet to come. China’s currency could depreciate by more than 30 percent in the next 18 months. The Chinese government would have to print more than $10 trillion to keep their banking system stable because the current debt is sinking their banks’ equity value. China is spending money at an unprecedented rate, and investors like Soros are betting that the Chinese yuan is going to suffer because of their spending and lending practices. The Chinese banking system is on track to lose more than four times what the U.S. banks lost in 2008, and if that trend continues, the United States will be sucked into a recession that will dwarf the Great Recession that knocked Americans off their financial feet eight years ago.
Read more: Investment Expert George Soros Thinks China Is Headed For More Financial Chaos
George Soros thinks China has already spread the recession bug to countries around the globe. China’s frenemy, Taiwan, has been in a recession for the last 10 months, and China’s favorite trading partner, Brazil, has been crippled by the worst recession since 1901. Europe hasn’t escaped the economic tentacles of China either. The European Union is in sad economic shape, and that fact is another reason why George Soros is predicting that an economic catastrophe is on its way to the United States.
When the GDP growth of the U.S. is analyzed, the Soros prediction makes sense. It is true that the U.S. economy is still growing, but economists say a 1.3 percent growth rate is not considered real growth. Consumer spending accounts for 70 percent of the GDP growth and spending is off, and the trade deficit continued to increase. The U.S. economic growth rate is expected to stay the same in 2016, but Soros thinks the economy will stall in the second half of the year. A magnitude 10 on the economic Richter scale is about to shake Americans once again thanks to China, and there is little anyone can do to stop it.
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