George Soros has developed a reputation for being one of the smartest and most knowledgeable investors during his brilliant career that has spanned over six decades. As a result of this, every statement he makes is regarded with a high level of importance in the financial world. Soros has recently taken great interest in the drama that has unfolded in Ukraine.
Needless to say, he has not liked what he has been seeing. Soros is in agreement with the European and American sanctions that have been levied against Russia because of the invasion of the sovereign Ukraine. However, Soros feels that Ukraine is not getting the help that it desperately needs to deal with other problems that it has experienced besides the Russian military invasion.
An unforeseen problem has emerged in the wake of Vladimir Putin’s decision to go against the global outcry by continuing to send troops into Ukraine. This problem is a major financial crisis in Ukraine that has never been seen before in the history of the country. George Soros Ukraine knows that Russia is feeling the hit of the sanctions imposed on them. In fact, their economy has started to suffer much sooner than expected because of the severe drop in oil prices. Russia requires a $100 price for each barrel of oil in order for the country to be able to balance its budget. However, the price of oil has dipped as low as $55 per barrel. This has crippled the Russian government in a way that has not been seen since the 1998 financial crisis. Unfortunately, Ukraine has also become an unintended victim of the financial siege that has been waged against Russia.
The Ukrainian financial crisis has caused Soros to call on other nations to give their support. He has put together a plan which he believes would solve Ukraine’s economic woes by combining political risk insurance with financial support on a massive scale. There would also be various incentives that would be offered to companies to get them to make substantial financial investments in Ukraine. Soros believes one of the keys to getting Ukraine financially back on track involves Naftogaz. This is a gas company controlled by the Ukrainian government. It currently has a monopoly on gas production in the country. Soros wants Naftogaz to be restructured so that the prices of gas in Ukraine are dictated by current market conditions instead of the artificially low prices that are currently in use. He also believes gas subsidies should be provided to households with low incomes.
Soros believes that European countries banding together and assisting Ukraine, along with the sanctions against Russia that are already in place, will shed necessary light on the failings of Putin’s policies. One of the major stumbling blocks is the fact that many European countries have major financial dealings with Russia.
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George Soros has issued a warning on politico.com suggesting that current market conditions are similar to those of 2008. The Hungarian-born investor’s stern warning comes in light of an oil crash and an election year. These market conditions are a mirror image of the situation in 2008, according to Soros. This was at a speech given at an economic forum in Sri Lanka. Additionally, there has been a major slowdown in Asia as Chinese markets have felt the impact of the current situation of economic turmoil. China has had issues with adjusting to the economic reality. China represents the growth story of the developing world, and bad news for China represents bad news for the rest of the world. George Soros has made his money from being able to accurately predict the markets and determine whether or not there will be an economic recession in the coming months. People pay attention to George Soros’ predictions since he has a major track record of being correct with regard to conomic forecasts and predictions as they relate to the current environment.
Soros is also concerned that Chinese market regulators don’t fully understand the reality of the market that they are in charge of regulating. Nevertheless, the Chinese have decided to suspend trading in order to prevent any economic blowback from the negative outlook. Economies across the world have noticed his prediction. The response has been swift as a direct result of the economic downturn.
In light of his beliefs, Soros donated $8 Million to Hillary Clinton’s campaign. This is in order to raise funds for an election which will change the shape of the future world economic order. This is a reduction of his previous political spending. This is in light of the fact that his efforts in 2004 to oust President Bush were not successful.