Liberal billionaire George Soros said on Thursday that the U.S. economy might be headed for calamity as an outcome of Trump’s plans to juice Americans corporate and stock prices before the 2020 election.
“Mr Trump’s economic crew has managed to overheat an already buoyant economy,” Soros spoke to his guests at a relatively informal dinner at the World Economic Forum in Davos, Switzerland.
“The stock market, which at the time celebrating Donald Trump’s military success, is breaking out to get to new heights. But an overheated economy cannot be kept boiling for too long,” Soros said, adding that “If all this had happened nearer to the elections, it would have assured his reelection.”
“President Trump’s problem is that the elections are still ten months away, and in a revolutionary circumstance, that is a lifetime,” Soros further said while talking about a possible economic doom before the 2020 election.
George Soros – an 89-year-old Democratic megadonor with an estimated net worth of around $8 billion, described his views at the dinner that took place during the forum, a yearly conference set in the Swiss Alps and termed for featuring elite business and political personalities.
The comment from the longtime investor came on the heels of new records highs in the United States’ stock market and after the longest bull market in American history.
Many economists accredit the surge to Trump administration’s policies, which resulted in more substantial corporate profit mainly due to the 2017 Tax Cuts, the Job Act and the renegotiated trade deals.
The White House, despite the lower rate corporations paying in income taxes to 21%, hasn’t backed away from passing big-ticket fiscal budgets or increments in military spending.
In the meantime, developments in the U.S.-China trade dealings brought a considerable boost toward the closing of last year. Both sides agreed to a “phase one” trade agreement in which China promised to lift its purchases of U.S. manufactured energy and agricultural goods and services by a roughly $200 billion over the next two years.
Such policies helped guide the S&P 500 to reach an all-time high of 3,337.77 on Wednesday after rallying over 28% in 2019.
The Wall Street mentioned George Soros as a person who’s best known for his trading prowess and a $1 billion bet against sterling that saw him and his then-manager Stanley Druckenmiller “break the Bank of England” on Black Wednesday back in 1992.
A chain of lucrative yearly gains at his Soros Fund Management through the 1990s reported an end in 2000, when the firm’s Quantum fund collapsed, following a host of technology and a downfall in the biotech stocks.
Said to be retired years ago, Soros has been known to perform active trading bets occasionally and backed his firm through the financial crisis.
On Thursday, he took the opportunity to slam Trump and China.
He said Chinese leader Xi Jinping is “attempting to exploit Trump’s weaknesses.” He also alleged Xi of using “artificial intelligence to have total control of his people.”
I think Trump “is a con man and a narcissist, who wants the world to revolve around him,” Soros said.