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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGeorge Soros says three months to save the euro - BBC
http://www.bbc.co.uk/news/business-18320881
Billionaire investor George Soros has warned European leaders they have a "three-month window" to save the euro.
He said he believed Greece would elect a government willing to abide by loan conditions imposed by the EU in this month's elections.
But he said the German economy would begin to weaken in the autumn, making it much harder for Chancellor Angela Merkel to provide further support.
He said leaders did not understand "the nature of the crisis".
He said that while European leaders were focusing on debt levels, the crisis was "more of a banking problem and a problem of competitiveness".
For this reason, he said they had "applied the wrong remedy".
"You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it," he added.
Mr Soros, speaking at a conference in Italy, was referring to the drastic austerity measures that have been implemented across Europe, measures that are now being questioned by a growing number of politicians and commentators.
flamingdem
(39,321 posts)Weaker Germany
Without policies to boost growth, which would enable governments to raise revenue to pay down debt, Mr Soros said time was running out for the euro.
"I expect the Greek public will be sufficiently frightened by the prospect of expulsion from the EU that it will give a narrow majority of seats to a coalition that is ready to abide by the current [bailout] agreement," he said.
However, this would provide only temporary respite, he warned, as the German public becomes less willing to continue bailing out its weaker European neighbours.
"The crisis is likely to come to a climax in the [autumn]. By that time, the German economy will also be weakening, so that Chancellor Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities.
"That is what creates a three-month window."
FarCenter
(19,429 posts)Does he make more $ billions if they follow his advice or if they reject it?
flamingdem
(39,321 posts)anymore, but I could be wrong.
FarCenter
(19,429 posts)Quantum, which will continue to manage about $24.5bn of Soros family money, blamed the decision on new financial regulations requiring hedge funds to register with the Securities and Exchange Commission.
http://www.ft.com/intl/cms/s/0/42bd6288-b785-11e0-b95d-00144feabdc0.html
Who knows what his hedge fund and the other hedge funds he invests in are doing?
Note that he is not so much in favor of regulation when it applies to his own fund.
bighart
(1,565 posts)He is in fact a dyed-in-the-wool member of the 1%.
flamingdem
(39,321 posts)and one of Obama's biggest supporters though now he is to the left of Obama
bighart
(1,565 posts)and his friends and family.
flamingdem
(39,321 posts)contradictions, true.
bhikkhu
(10,724 posts)...which may be the problem all along, in that real growth becomes more difficult the larger the "human economy" gets, on planet of limited size and resources.
Throw in climate change as a disruptor to even maintaining what we have, and then - thinking toward the future - it begins to look like not growing would be a better strategy in the long-term.
flamingdem
(39,321 posts)in other ways it's worse since it gives an excuse to loosen pollution controls, etc.
What choice do we have other than to grow at this point? Later I can see the point of curtailing growth but to have it sputter to quickly leads to unwinding of the world's economy
wilsonbooks
(972 posts)Renewable resources like solar and wind and infrastructure improvements. We have a limited window of opportunity to make investments in these areas before our resources run out. The era of unlimited growth is over.