According to George Soros:
As 2013 comes to a close, efforts to revive growth in the world’s most influential economies – with the exception of the eurozone – are having a beneficial effect worldwide. All of the looming problems for the global economy are political in character.
Says:
- Japan is attempting to reinvigorate its economy; its “a risky experiment: faster growth could drive up interest rates, making debt-servicing costs unsustainable. But Prime Minister Shinzo Abe would rather take that risk than condemn Japan to a slow death”
- The European Union is heading toward the type of long-lasting stagnation from which Japan is desperate to escape
- The euro’s design – which was modeled on the Deutsche Mark – has a fatal flaw
- The United States is emerging as the developed world’s strongest economy
- The polarization of American politics shows signs of reversing
The major uncertainty facing the world today is not the euro but the future direction of China. The growth model responsible for its rapid rise has run out of steam.
A read well worth the time, from one of the best in the business:
