George Soros on the 'Blah' Economy and China's 'Phenomenal' Rise By JEFF BERCOVICI Posted 11:30 AM 09/15/10 Will the fragile global economy continue its tepid recovery, or will it tip back into recession? In the view of famed investor George Soros, it doesn't make much difference. Soros was asked about the state of the macroeconomy during a Q&A held at the Nasdaq Market Site Wednesday morning and hosted by Thomson Reuters. "If I had to sum it up in one word, I would say 'blah,'" he replied. "It may slip into a double dip or it may not, but it's going to slow down. There's no question in my mind." He had lots to say about China. "China is the great winner. It's rising very rapidly because the West is sinking. The shift is phenomenal. I have never seen anything like it." He also said, "Until the crunch, the U.S. consumer was the motor of the world economy. Now it's the Chinese. It's smaller, so the world economy has a smaller motor. So it's not running very fast." Asked whether the U.S. should consider trade sanctions against China for manipulating its currency, Soros said, "These things might be destructive. Threatening them might be appropriate, but once you use it, both sides suffer." See full article from DailyFinance: http://www.dailyfinance.com/story/george-soros-economy-china/19634793/?icid=sphere_copyright
Economic power has always been held by "those who make things and sell them to the world". That's China, India, Latin America... formerly, it was the USA. Our government pisses and moans about "China's unfair exchange rate"... that's a laugh. If China's currency rose by 500% we still would not be able to compete with them in labor costs.
One important thing that Soros is clearly overlooking is that the Chinese are NOT the world's "motor". That's giving them *way* too much weight. They are the world's "transmission". The "motor" is really a hybrid comprised of the US/EU sending all its power to the Chinese transmission plant. I say it's time to drop this "transmission" and go "direct-drive" without the Chinese. Otherwise, learn Mandarin because they'll soon be your masters.
If china let their currency float tomorrow, every good we import would possibly go up in price 30 to 60% within weeks and/or months. You talk about a kickstart for hyperinflation...
We get everything for free while they have to work 24/7 in terrible conditions and get payed in newly printed paper money of which we could easily print a few trillion more if needed... Who is really winning one might think.
FedEx fell as much as 3.7 percent in New York trading as results indicate an uneven global recovery, with U.S. shipments trailing growth in more-profitable international express packages. _______________________________________________________ I dont have much respect for SOROS anymore...the Progressive, Socialist that he is. But I agree, the US economy is BLAHH and will stay that way for some time. All my Global Clients are seeing pick up, real solid pick up. A few hickups in Euroland but overall more positive than the Smoke and Mirror numbers from the US. FedX say's it all. Laying off 1700 people (While the recovery in the US is strong and in Tacked..no doubl dip...uh huh), an Uneven Global Recovery. Humm read between the lines.
Could someone give me the office/mailing address of George Soros' Quantum Fund. I have search in google but could not find it. I want to send a business proposal to Quantum Fund.
Yes, think of the benefits. 1. More US jobs. 2. US $ would hold up. 3. More recycling. 4. Less resources wasted shipping so much shit around the world several times over (So. America>China>No. America). 5. Less world polution. 6. Much slower pace of resource depletion than now. 7. Less worry about China's military threat and the $100s billions needed to counter that. Probably others I'm overlooking....
Labor costs are a common misconception. The US had the highest wages in the world and still produced the cheapest goods 50 years ago. This is because of efficient industries. Today, its impossible for a US company to compete with Chinese even if labor costs collapsed in America, there is simply TOO many government regulations and taxes. Sure China has many regs too but they aren't enforced or easy to bribe your way out of it. China is only communist in name, the old commies are simply there to skim some power and wealth for themselves. The rest of the place has some of the most competitive markets and best entrepreneurial spirit in the world.