When George Soros warns of a bubble it might be time to listen
I despise George Soros but the man does seem to be able to pick out economic bubbles and profit from them and right now he is looking at gold as the next bubble.
In comments delivered on the fringe of the World Economic Forum, Mr Soros said: “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.”
I can easily believe it the way it has been pushed over the last couple years. (Yet another reason I despise Glenn Beck as much as I do Soros – Thanks Glenn)
Soros also believes that the recession hasn’t yet run it’s course –
He said: “I think that since the adjustment process to the recession is incomplete, there is a need for additional stimulus. Some countries, like the US and European countries, have plenty of room to increase their deficits. The political resistance to doing so increases the chances of a double dip in the economy in 2011 and after that.”
I believe that the economy may possibly dip again, but I just don’t see how another mountain of debt is going to fix it. Especially since I am expecting the next big crash to occur in China. I just don’t see how they are sustaining 9 to 10% annual growth in their GDP year after year. Something is fishy there.