George Soros is a Hungarian-American billionaire, philanthropist, investor and author. He was born in Budapest in 1930. He chairs Soros Fund Management and Open Society Foundations. The Open Society Foundation supports democratic ideals in many countries. He is also among 30 of the richest people in the world and is one of the greatest financiers in history. Due to this, his views on investing and economic issues get a massive following.
George Soros predicts that there would be great consequences if Great Britain opts to leave the European Union. He says that there would be a currency and stock market disaster if that happens. Some of the people who agree with him include former soccer star David Beckham and British Prime Minister, David Cameron. He further continued saying that if Britain left the European Union, the British Pound would be severely weakened, and standards of living would be lowered. He cited what happened in 1992, commonly known as ‘Black Wednesday’ when the British currency lost 15 percent of its value due to Britain opting out of the European Exchange Rate Mechanism. Soros said in an opinion article in the Guardian newspaper that this time round it could be even worse and that the currency could fall by 20 percent or more.
How Billionaire George Soros Profited From Brexit’s ‘Black Friday’
George Soros | Open Society Foundations (OSF)
The supposed proposal of Britain to exit from the European Union is known as “Brexit.” As with the case of the 1992 exit which brought about a rise in manufacturing exports, George Soros noted that it would be highly unlikely this time round. He estimated that the pound and the euro would be of the same value if “Brexit” were to happen. During Britain’s European Exchange Rate Mechanism exit, Soros Quantum Fund bet against the British currency, and he made a profit of a billion pounds. This incident occurred on a Wednesday, and that’s why it was given the name “Black Wednesday.” The British Pound at the time was overvalued against Germany’s currency. Soros gave three main reasons as to why Brexit wouldn’t be as beneficial as Black Wednesday. These reasons are:
– The Bank of England cannot afford to cut the rate from the already low levels.
– Brexit would bring about uncertainty in trading conditions and hence the loss of currency value wouldn’t help exports.
– Currently, the UK has a large current account deficiency, and there is a probability that there will not be another inflow of cash.
Soros said that a vote to leave could lead to a “Black Friday” at the end of the week.
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The JM de Los Rios Children’s Hospital in Caracas is one of the country’s top medical facilities. And although the hospital employs some of the most skilled surgeons and doctors in the world, children are still dying.
Every part of Venezuelan society is touched by the desperate economic crisis according to recent report by El Venezolano. Quality healthcare for all citizens was a promise made during the revolution. That promise has fallen on deaf ears, and many children paying the ultimate price. The government is unable to supply the badly needed drugs for sick patients. Cancer medicines, anti-epileptic drugs and even antibiotics are near impossible to find.
Former chief of the hospital’s intensive care unit, Huniades Urbina, is a man on a mission. Him together with Mr. Osio have been attempting to expose the shortages at great personal risk. The corridors are lined with President Nicholas Maduro’s loyal militia. “The climate of fear is real. Anyone who dares to tell the truth is deemed disloyal and could be subject to arrest or worse,” says Urbina.
The country is in a state of emergency, says Urbina. “Everyone is poor. Even the doctors.” The paltry sum allotted by the government is not enough to live on, and most people are forced to purchase subsidized food.
A few people have turned to securing medications from underground organizations. “It’s the only thing people can do until things change,” said Urbina. International assistance is a possibility, but for now, Venezuelans are forced to secure drugs any way they can.
George Soros does not see the global financial environment as very good for business at the moment. If anything, he thinks it is very similar to the global financial crisis of 2008 and he warns and cautions all investing in either stock or in the financial world to tread with a lot of caution. He gave the remarks at a recent World Economic Forum in Sri Lanka. George is pretty concerned about the way China is struggling to identify a new growth model now that it is making a paradigm shift from manufacturing to offering services.
He pointed out on Bloomberg that before China regains its strength in positive rates, it will bring forth a lot of challenges to the developing world therefore, making the environment synonymous to the financial crisis of 2008.
In the debut trading week of 2016, a lot of losses were experienced in the financial markets with the Chinese Yuan making a very big nose dive south. More than $2.5 trillion was wept away in losses with the biggest impact being felt in Asia. Speaking at a past Washington economic conference in 2011, he had warned that the Greece-born European debt crunch would have bigger crisis than that of 2008.
Soros is the world’s richest hedge fund manager. Between 1969 and 2011, his hedge fund managed to make average annual gains of 20%. He has a net worth of not less than $27 billion and is well respected because of his ability to foresee and also to invest. In 1992, he made news headlines when he broke the Bank of England by netting a bet worth $1 billion and by that, forcing the United Kingdom to devalue the pound.
When he felt that he had made enough financial success in around 1979, he felt that it was important to become involved in philanthropic matters involving the community. He began by giving scholarships to black students in South Africa who were bright and had no money for fees. In the 1980’s, he was very instrumental in undermining communism in the Eastern bloc when he provided Xerox machines that played a very big role in supporting cultural changes.
When the Berlin wall fell, he was again involved in creating the Central European University so as to promote matters related to critical thinking. He was very instrumental in expanding his philanthropy to countries in the United States, Asia and Africa through his Open Society Foundations.
The foundations have played a very big role in supporting paralegals and lawyers to represent thousands who are unlawfully held. He is very passionate about providing a voice for the voiceless and especially from developing countries. He is an excellent example of an individual who has struggled to get where he is and after that, helping the world become a better place.