Soros: Financial Markets Built on "False Pretense"
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.