George Soros: Chinese economy in for hard landing

DAVOS/SWITZERLAND, 27JAN11 - George Soros, Chairman, Soros Fund Management, USA, is captured during the session 'Redesigning the International Monetary System: A Davos Debate' at the Annual Meeting 2011 of the World Economic Forum in Davos, Switzerland, January 27, 2011. Copyright by World Economic Forum swiss-image.ch/Photo by Michael Wuertenberg

As we have said before here, we do not particularly like Mr. Soros but he is someone who is worth listening to.

Word is that many people at Davos (the superconvention of financiers, economists, world leaders, and celebrities going on right now in Switzerland) have been trying to convince themselves that China is still going to be OK, that a “soft landing” can in fact be engineered in the Ultimate Crony Capitalist State. But there is a growing list of pretty smart people who think that a Chinese “soft landing” is a dream.

(From CNBC)

“A hard landing is practically unavoidable,” Soros said on Bloomberg from Davos. “I’m not expecting it, I’m observing it. China can manage it. It has resources and greater latitude in policies, with $3 trillion in reserves.”

Soros said the slowdown in China stemming from over-indebtedness is inflicting its problems on the rest of the world. China, along with falling oil prices and raw materials, are the root causes of deflation.

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