Skip to content

Billionaire Soros warns China is near economic collapse

Free World Class Education
FREE Catholic Classes
World could follow China into decline.

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great Recession.

Highlights

LOS ANGELES, CA (California Network) - According to Soros, March was a troubling month in China. The indicator is the growth of credit in the nation's economy. The forecast for Chinese credit growth was an impressive 1.4 trillion yuan, but instead, the actual growth turned out to be 2.34 trillion yuan ($362 billion USD).

The concern is that the Chinese government is prioritizing growth over debt, and allowing debt to spiral out of control. It's a short-term way to keep people happy, but it leads to long-term consequences. In the United States, an eerily similar situation developed in 2007 and 2008, just prior to the Great Recession.

The debt that was accrued in the U.S. at that time was used to cover already bad and dying debts and enterprises. The same appears to be happening in China today.

Soros has previously predicted that Asian markets would fare poorly, suggesting that decline is "unavoidable." This is common sense for investors.

China's real estate is also on a bubble with home prices rising over 60 percent in some locations. This also happened in the U.S. prior to the crash.

With wages suppressed around the world, and with the wealthiest hoarding cash, the world's people are increasingly relying on credit to sustain their lifestyles. Much of this credit is bad debt, it will not be repaid. Eventually, markets will agree that too many people owe too much money and credit markets will tighten. But because nearly all growth is now dependent on credit, such a tightening in credit will result in a virtually guaranteed recession.

This is why the Federal Reserve Bank in the U.S. is reluctant to raise interest rates, doing so could derail the fragile economic growth in the United States. And the same could apply to China, which is allowing credit to grow too fast.

If the Chinese economy suffers a collapse, it will undoubtedly impact American markets and could trigger a recession in the United States.

---

The California Network is the Next Wave in delivery of information and entertainment on pop culture, social trends, lifestyle, entertainment, news, politics and economics. We are hyper-focused on one audience, YOU, the connected generation. JOIN US AS WE REDEFINE AND REVOLUTIONIZE THE EVER-CHANGING MEDIA LANDSCAPE.

We ask you, humbly: don't scroll away.

Hi readers, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you.

Help Now >

Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.





Catholic Online Logo

Copyright 2021 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2021 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.

Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.

Subscribe to Our Newsletter!