“Something similar is happening in the West,” Soros said. “You had a financial crisis where the market did actually collapse, but it was kept alive by the authorities. People don’t realize that the system has actually collapsed.”
Previously, George Soros gave a candid interview with Der Spiegel about the future of the European Union and the euro as a currency. In essence, Soros made the following argument:
- The world economy needs the euro.
- The euro is doomed unless Germany guarantees the debts of nations such as Spain and Italy.
- Germany must introduce euro bonds and dictate economic policy to Italy and Spain to ensure that these countries do not increase their debts beyond their capacity to repay.
It seems that Soros thinks that deregulation has been the core part of the debt crisis.
“Regulation is very difficult and we haven’t solved it at all,” he said. “We are very early in the process and we are not making much progress.”