In Sri Lanka, George Soros was given an opportunity to speak to the world and warn them on an impending danger that it is about to face that is very similar to the on we experienced in the year 2008. Soros said on Bloomberg that the world will be strongly hurt by the devaluation of the Chinese form of currency called the Chinese yuan. The markets in the world especially the financial markets in terms of currencies are about to face a serious crisis that should never be taken lightly especially by the investors. Those are the words of George Soros to hat financial forum in Sri Lanka.
He further affirms that there is a great struggle in china as they are trying to find a real growth model as there has been great devaluation of the yuan which is the currency the Chinese people are using and the problem will feel the transfer of the issue will be felt by the entire world instead of China alone. There is a return to the positive rates in interest in the developing world and is a great challenge that most growing countries are really facing and to add insult to injury is that the world will bear the injuries to that crisis that is about to happen that is very similar to the one in 2008.
Commodity markets as well as the stock markets have been under a blaze in the beginning week of this very year. The sinking currency of the people of china called the yuan adds to the concern that is impending. The Chinese people are now shifting from their main role of being the largest manufacturer towards the consumption of all the manufactured services. More than a sum of two point five trillion yuan money of china were slashed in the world trade in equities and the china government is pumping a lot of money close to billions of dollars into the economy of their country as these losses entirely depend on the Asian countries as the trades made by the Chinese drifted from the trades as the day progressed by.
George soros says that this country of china normal has a major problem that they are facing that is of adjustment. This is the reason why we fear of this impending crisis there are many serious challenges that the economy of china is facing that will be directly directed to the world and this reminds Soros of the kind of crisis that was experienced in 2008. In saome years before especially in a forum in Washington that was held in 2011, George soros remembers to have warned the world on an impending problem about a catastrophe.