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Monday, June 08, 2009

Soros-China a "Positive Force"

Multi-billionaire George Soros "owns" the US Democratic Party and is a major funder of the American left.


Soros is not optimistic about America's prospects but he's pretty positive about China.

From China's People's Daily Online

American billionaire financier George Soros said Sunday that China's economy will grow faster than people expect and so will its global economic influence.

Soros said in Shanghai that China's influence is set to grow faster than before, as its banking system is kept healthy and kicking, and a prompt and strong government intervention to rev up a slowing economy late last year.

Meanwhile, he was cautious estimating a recent rally in global stock markets, including in New York and London, given the liquidity problem in the Western markets which have made many investors still sitting on the sidelines.

"In many ways, Chinese banks have benefited from being isolated from the rest of the world and is in better shape than the international banking system," he told an audience at Shanghai's Fudan University.

Beijing's strong oversight on banking practices and capital moves have helped to shield Chinese financial institutions from the worst of the global crisis, he emphasized.

"The influence of the state is also greater. So when the government says 'lend', banks lend," Soros said. "This puts China in a better position to recover from the recession and that is in fact what has happened now."

New loans by Chinese commercial banks surged to record levels in the first four months, spurring optimism over recovery prospects for the world's second-largest economy, many analysts believe.

"China is going to be a positive force in the world and the market, and as a consequence, its power and influence are likely to grow. Personally, I believe it's going to grow faster than most people now expect," Soros said.

He also noted that China's aggressive 4 trillion yuan (US$586 billion) economic stimulus program, announced at the end of last year, had bolstered Chinese economy gravely.

"If that program proves inadequate, it is in a position to apply additional stimulus. China is also in a position to foster a revival of its exports by extending credit and investing abroad," he said.

He reiterated his view that because China's economy is about one-third the size of the U.S. economy, it cannot replace the American consumer as the motor of the global economy.

He sounded a more upbeat note for China's equity markets than for global markets overall, where he remained wary.

"I'm pretty cautious. Even though I've said prices are cheap, I'm not so optimistic as to put all my money into stocks or assets because I think that the outlook is fairly uncertain.

"I do, however, think that the Chinese economy is a promising economy. I think here it is more a matter of finding the right assets rather than saying that I'm not interested in investing
."

4 Comments:

Blogger MZL said...

Ever thought that perhaps that Soros' (who is a billionaire stock-market CAPITALIST) analysis is just an objective look at current international market conditions that favour chinese banks? after all, in addition to giving some money to the bourgeosis center-right Democratic Party, he also was a major funder of anti-communist efforts in eastern europe.

12:46 AM  
Blogger Trevor Loudon said...

Soros is a capitalist in the sense that he uses capital.

He is certainly no believer in laissez faire capitalism and the constitutional system that made the US great.

Soros did indeed support certain "democratic"organisations in Eastern Europe, but so did the KGB.

In the US he has used his money to support the socialist left and has succeeded in buying a big chunk of the Democratic Party.

Soros is a shrewd man and his analyses should be respected.

That said, I am very much opposed to his objectives and most of the causes he supports.

1:01 AM  
Blogger mah29001 said...

Here's something which I copied onto my blog you can take a look at Trev, scary little comparison between Obama as Gorbachev. I know you compared him to Lenin, but he's more like the Social Democratic leaders of Weimar Republic whom were also supported by German Communists.

They inevitably allowed massive spending to go unchecked, which had the National Socialist German Workers' Party (Nazi Party) to exploit it. Is there someone more radical than Obama out there?

http://english.pravda.ru/world/americas/08-06-2009/107737-obama_gorbachev-0

4:06 PM  
Anonymous Anonymous said...

Soros is a real life Bloefeld.

007 where are you??

EXOCET

1:10 PM  

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