By Rocky Vega
10/17/09 Billionaire investor George Soros has largely become famous and wealthy for making wise decisions when it comes to currency speculation… and he’s more concerned now than he seems to have been in a while.
His main problem is China’s renminbi peg to the US dollar. Even with an exceptionally weak dollar the Chinese currency is staying artificially undervalued, a situation that he sees as “fraught with danger.” He’s also concerned about the US being a drag on global economic growth and that China in the process of inflating its own asset bubble.
The global economy is stuck between a rock and a hard place. With manipulation of the currency markets, a pretty standard feature of fiat money, we’re not likely to get an outcome we want, but something more like what we deserve. It’s a nerve-wracking time to be heavy in dollars… its one bag that most people seem afraid to be left holding.
You can read more in Reuters coverage of Soros’ current currency perspective.
Rocky Vega is a regular contributor to The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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