There are several important events taking shape in the world. China’s inability to turn its weak economy around as planned has been making headlines since August 2013. George Soros, the hedge fund manager and open society advocate, believes China will not be able to grow as fast as planned in 2016. In fact, he is betting billions that China’s currency will depreciate against the dollar this year and for the next three years, and that will have an impact on China’s internal economy. But when Soros sat down with a German magazine recently, he was focused on another world event that could impact the global economy almost as much as the Chinese economic slowdown.
The interview was reposted on New York Review of Books, and the main topic was the European Union. The EU has also been in the headlines for most of last year. The euro crisis isn’t getting any better, and the threat of several member countries going bankrupt is still making headlines in the media. George Soros thinks the EU is in for trouble and most members agree with him. The truth is, several countries would like to disconnect from the EU. The Union has become a very unpopular part of the European way of life.
What to do with the political unrest that hinders the EU from making any kind of economic progress is a question that continues to produce different scenarios in the press. Soros believes the EU can be reinvigorated, but leadership or the lack of it is standing in the way. Hungary would like to take control of the EU, but that country is not in a position to lead. But Hungary can be disruptive, and the leaders are doing a very good job at that.
Mr. Soros told the Bloomberg interviewer that Germany should take the lead, but the Chancellor of Germany has been under attack by Germans for her refugee plan. Terrorism has reached the cities of Germany. Many Germans blame Chancellor Angela Merkel for helping the terrorists get into the country. Merkel will have to regain the support of her countrymen before she can deal with the migration crisis in Europe.
George Soros is not afraid to deal with the Middle East exodus, but according to him, the EU is turning a blind eye to his suggestions. That’s not unusual for the leaders of the EU. The leaders rarely take advice from anyone, and that includes their own members. But as the EU leaders continue to chase their tails, a steady stream of asylum-seekers continue to knock on the doors of the European Union. The answer to those knocks has been to either close borders or to initiate a screening process. Soros thinks those answers aren’t answers they are reactions.