Billionaire George Soros has returned from his semi-retirement and is once again directing investments at Soros Fund Management. At the age of eighty-five, Soros ranked number twenty-three on Forbes 2016 list of billionaires. He also ranks tenth in the 2016 edition of Forbes list of Highest-Earning Hedge Fund managers. Not bad for a self-made billionaire who once worked as a waiter and a railway porter. The New York State resident issued some sobering warnings about Great Britain’s financial well-being in light of the potential ‘Brexit’ from the European Union. Citizens of the United Kingdom will vote on the measure to opt out of the EU, but Soros is concerned about uninformed voters. George Soros wants citizens to understand the harsh economic realities the UK would face in the event that voters confirm a ‘Brexit’ from the European Union. When a man of Soros’ experience and intellect offers advice, heeding the warning is the best course of action.
Newspaper, USA Today quotes Soros as saying that the United Kingdom could face “severely damaged living standards,” if the opt out of the twenty-eight-nation collective. George Soros feels the large deficit in the United Kingdom’s current accounts will leave the UK at the mercy of foreign investment capital. Because interest rates are near zero, Soros feels that there is no latitude within the Bank of England. He also warns that using negative interest rates would likely be devastating and long-lasting effects on British banks.
Uncertainty about the vote has already reduced market activity and very little new activity is expected. According to Forbes, Soros projects that leaving the E.U. could devalue the British pound by fifteen percent. Soros foresees nothing positive down the road if citizens vote to leave the European Union. Soros suggests that if the referendum to opt out is ratified then citizens of the United Kingdom prepare for an economic set back with long term effects.
Learn more about George Soros: https://www.project-syndicate.org/columnist/george-soros