Soros: Economy At Risk of Double Dip, Gold Not Safe

Legendary investor George Soros spoke at a conference earlier today about his outlook for the US economy, gold, China, and other macro issues. In particular, he mentioned that there is a possibility the US economy will enter a double-dip recession because government stimulus measures are ending prematurely. Soros also took time to bash gold saying that it was not safe and at risk of a decline (meanwhile Quantum is actively buying gold). Another issue discussed was the Chinese economy and how the renimbi could become the next global reserve currency, but that it would harm Chinese exports. Regarding the EU, Soros was somewhat optimistic saying that he does not expect struggling countries like Spain and Ireland to withdraw from the common currency. From the New York Times:
George Soros, the billionaire investor and philanthropist, on Wednesday had one word to describe the current state of the United States economy: “blah.”

“If I had to sum it up in one word, I would say: ‘blah.’” Mr. Soros said this morning at a Thomson Reuters conference in New York. “It may slip into double-dip or it may not, but it is going to slow down.”“This is a period of great market uncertainty, so nothing is very safe,” he said.

Mr. Soros said that the world was cutting stimulus spending too early, which would ultimately hurt the global economic recovery. He said austerity measures introduced in the United States and Europe were the “right policy at the wrong time,” and drew parallels with similar moves made by governments during the Depression, which ultimately ended up exacerbating that crisis.

He said that he saw bubbles forming everywhere, but that gold, which hit a new high this week, was the “ultimate bubble.”

“It is certainly not safe, and it is certainly not going to last forever,” Mr. Soros said about the increase in gold prices.
What I really don't get is why Soros keeps bad mouthing gold while at the same time he is buying large amounts of it. Who is he kidding?


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