Saturday, 9 October 2010

China controls the world currency markets says George Soros

George Soros, interviewed on the BBC Radio 4 program Today (October 9) can be heard in the clip referenced below making the rather striking assertion that the "Chinese effectively control the entire world's currency system".

Here is the audio clip and the assertion comes around 1:40 into the interview segment.

Notice how the interviewer completely fails to grasp the true significance of what Soros is alleging and moves on with the interview in a one-dimensional and prosaic manner to talk about re-valuation of the yuan against the dollar.

If Soros is right, and there is mounting evidence that he is, for example as I have discussed in this article , which can also be found here, the consequences for those running global asset allocation strategies and believing in the notion that markets, especially in FX, are price discovery mechanisms, should really be quite disruptive.

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