Billionaire George Soros is worried about the health of the Chinese economy and the possibility of world war 3.
As China transitions to a domestically led demand economy and increases its military spending, financial investor Soros wants China’s currency to be included in IMF’S basket of currencies. Otherwise the transition from an exports driven economy to a domestic-demand-led economy could falter and force the government in Beijing to contemplate a war for the sake of unity and the hold onto power.
He told a meeting of the World Bank at the Bretton Woods conference, of the ‘likelihood’ of war with an external enemy, such as an ally of the U.S., by the Chinese military should the economy falter. By including China in the IMF, it could be a way of having a degree of control by the West and holding China responsible.
Sputnik News reports:
“If there is conflict between China and a military ally of the United States, like Japan, then it is not an exaggeration to say that we are on the threshold of a third world war,” Soros was quoted as saying by MarketWatch.
He called on the United States to make a “major concession” and allow China’s currency to join the International Monetary Fund’s basket of currencies. This would make the yuan a potential rival to the dollar as a global reserve currency.
In return, China would have to make similar major concessions to reform its economy, such as accepting the rule of law, Soros said.
Allowing China’s yuan to be a market currency would create “a binding connection” between the two systems, he argued. Such an agreement will be difficult to broker, Soros acknowledged, but the alternative could be global catastrophe.
“Without it, there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying.”
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