George Soros says the next crisis in Europe will be political

George Soros writes about the world economy’s shifting challenges at Project Syndicate.

The crisis has transformed the EU from the “fantastic object” that inspired enthusiasm into something radically different. What was meant to be a voluntary association of equal states that sacrificed part of their sovereignty for the common good – the embodiment of the principles of an open society – has now been transformed by the euro crisis into a relationship between creditor and debtor countries that is neither voluntary nor equal. Indeed, the euro could destroy the EU altogether.

He doesn’t comment directly on FX but says the US is emerging as the developed world’s strongest economy. He warns about eerie resemblances to the current conditions in China compared to the the US in the run-up to the crisis. He says the Chinese conundrum, which will come to a head in the next few years.