Billionaire investor George Soros told Bloomberg TV on Thursday he sees a hard landing for China’s economy contributing to global deflation.
“A hard landing is practically unavoidable,” Soros said on Bloomberg from Davos. “I’m not expecting it, I’m observing it. China can manage it. It has resources and greater latitude in policies, with $3 trillion in reserves.”
Soros said the slowdown in China stemming from over-indebtedness is inflicting its problems on the rest of the world. China, along with falling oil prices and raw materials, are the root causes of deflation.