George Soros Believes in the New Ukraine

George Soros believes that bailing out the Ukrainian economy is a good thing because Ukraine has thrown off the burden of government and business corruption and has become democratic and modern. It is an outstanding member of the European Union. These high-minded values makes the future bright for Ukraine. Soros believes Ukraine is an authentically reformed country. For such a savvy financial genius, Ukraine is a good investment.

Out With the Old
Soros often points to the old Ukraine to illustrate how radical a transformation has proceeded to help the people of Ukraine. Freed from the yoke of past Ukrainian corruption, Soros believes the new Ukraine has enhanced integrity in the business of nation building and staved off challenges from separatists who dispute the legitimacy of an independent Ukrainian government. Many government officials make sacrifices every day, working for free or for small salaries to help Ukraine achieve nationhood.

Ordinary Ukrainians and Russians
Despite all the positive developments in Ukraine, Soros believes threats lie from within and without. To prove to the world that Ukraine has a legitimate economy is no easy matter. Indeed, even proving to Ukrainians that a new day is at hand hasn’t always worked. Indeed, Russia threatens to destroy the effort with invasion and financial sanctions.

Reform minded officials in Ukraine are striving for transparency, whether in government expenditures or with the country’s financial dealings. According to Soros, they want an independent and professional judiciary system. The past corruption is over. Of course, Ukraine also want to share their sovereignty with other EU nations. Soros believes this is an exceptional example and should get Europe’s financial support.

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George Soros | Open Society Foundations (OSF)

Sustaining Ukraine’s Breakthrough

How to Solve the Russian Problem
According to Soros, the Russian problem can only be alleviated with help from the West. If the West would cast the separatists’ complaints as a result of conspiring with Putin and the Russians, it would explode the myth of legitimate internal unrest in Ukraine. Financial help from the West would ease pressure on the Ukrainian economy as it gets a foothold in the global economy.

How Bailing Out Ukraine Works
By funding the Ukrainian economy with $15 billion, according to Soros, both problems of pressure from within and without are solved. Ukraine’s economy is rich in human capital and diversity, and investors would be served by equity stakes and profit-sharing, according to Soros. Russia would be unable to use Ukraine’s as an excuse for invasion and financial sanctions. Soros believes that most Russians believe Putin’s argument that Ukraine is a mess. If Ukraine could prove how wrong they are, ordinary Russians would disagree with their President.

Ukraine, as Russia’s largest neighbor, has historically been the first threat to Russian power. According to Soros, if Ukraine becomes a fine example of a functioning member of the EU, Russia would feel tremendous pressure to change its ways and join the World as an economic partner and not a military threat.

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Soros compares Chinese economical situation to U.S. in 2008

Billionaire investor George Soros said in a recent article on Bloomberg there are striking similarities between the current Chinese economy on and that of the United States in 2008 that led to a global recession. Soros is one of the world’s richest men, having made his fortune in international finance.

The Chinese economy is growing, but the latest figures should be seen as a sign of possible bad things, Soros said at a meeting of the Asia Society in New York. He said the Chinese government seems to be focusing on growth and ignoring its mounting debt. The latest figures on show the economy was at 2.3 trillion yuan, which would translate to $362 billion in U.S. Dollars. That is way beyond the forecast of 1.4 trillion yuan.

George Soros said this is what happened in the United States in 2008, when banks were lending money to keep bad debts afloat and to make up for money losing businesses. He said a “hard landing” is unavoidable in China.

Soros is said to be worth $24 billion, and he made that through intelligent wagers on markets around the world. He is currently betting against the Chinese economy in his investments. He has been having a running argument with China on in a sense.

Soros said Chinese banks have more loans than deposits and that is a troubling sign. George Soros added that banks are lending money to each other to cover debts, and that is another bad omen. The problems with the Chinese economy have been pushed down the road, but that can only continue so long, he said.

Also similar to thee U.S. economy of 2007, is the Chinese housing market, which is growing and is in a bubble. Home prices in Shenzhen, for instance, have grown 62 percent in recent times.

While the Chinese economy is growing, the growth seems artificial, based on debt, George Soros explained.

Andrew Colquhoun, of Fitch Ratings, said he was also concerned about the Chinese economy that is more and more based on debt.

Chinese economists do not agree, and they say the concern about the debt levels are exaggerated. The Chinese say real estate growth, industrial growth and producer prices, indicate the problem is not as bad as some say.