An EU recession could be coming just because of a planned exit by the UK. They are having a referendum, and it is possible that the people of the country could choose to leave. They might be leaving just because they feel like it, but it is possible that they do not understand the ramifications of what they are doing. A USA Today article goes into depth about what George Soros thinks about the situation. He is one of the richest people in the world, and he is an investing wizard who is to be listened to when he speaks. He tells people how they can best invest their money, and he knows a problem when he sees one.
How Billionaire George Soros Profited From Brexit’s ‘Black Friday’
George Soros | Open Society Foundations (OSF)
The problem with the UK choosing to leave the EU is that there will be a major change in trade on the continent. The continent is not built to withstand this kind of change because the best economy on the continent will no longer be a participant. A recession will follow that George Soros thinks will center around commerce volume and currency. That would hit other economies around the world, and then there would be a lot of people who are concerned that they cannot trade as they once did.
Volume will start to go down at George Soros has predicted, and then there will be countries in the EU that will not be able to keep up. It is pretty easy for people to see how bad some economies could get under this plan, and then the recession would result in a less stable EU. The EU would not be in a place where it could come back to its former glory, and George Soros is concerned that some people will not recover at all. He is concerned about avoiding another crisis like that of 2008, and he hopes that people will listen.
Learn more about George Soros:
Imagine being born Jewish in Budapest, Hungary, in 1930. At such a young age it would be difficult to see just how destructive the Nazis would be, but all the anti-Semitism would most definitely strike fear into your heart. Now imagine that your father has secured false papers and has changed your last name to avoid Nazi persecution. Then the inevitable happens. The Nazis occupy your home city and do not allow you to go to school. Your father narrowly fools the Nazis as they hunt for Jews in the city. After the war comes to a close, your family loses everything. Would you want to stay in Hungary?
That’s exactly what happened to George Soros, the world renowned hedge fund billionaire, when he was a young boy. His family decided not to stay and fled to the United Kingdom. He scraped pennies, put himself through college and found his success. Now the 85-year-old is semiretired and devotes his time to philanthropy, promoting progressive values and open societies around the globe. But you can understand why this most recent Syrian refugee crisis in the European Union is so troubling to him.
George Soros knows exactly what is at stake, in a humanitarian sense and an economic sense. That’s why he thinks that the European Union is on the verge of collapse. He knows that a tsunami of penniless refugees could tear down the economy of the European Union. After all, refugees need to be housed, fed and assimilated; and that all costs money. But he also knows that these refugees need to have a chance just like the chance he got after World War II.
The landscape in Europe has changed. Soros now sees German Chancellor Angela Merkel as the leader of the free world and he is pointing to her to show strong leadership in order to ease this humanitarian and economic crisis. The humanitarian crisis is obvious. Families escaping Syria pile into dilapidated boats in order to reach the shores of Europe. Boats have been known to sink in some countries in Europe have been known to turn refugees away. This puts their lives in danger.
But the economic crisis is also evident to George Soros according to NY Books. He sees the need for hope. These refugee families must be given the hope of a future, but all he sees his fear. After the terror attacks in Paris, Europeans are more likely to fear refugees than to take them in. It is now Germany’s turn to step up to the plate; to shine a light on the open door for people in need. If all the European Union countries work together they can vet and absorb refugees at a rate that will benefit the economy and strengthen the union. If they succumb to fear, the union falls apart.