In an op-ed published on Monday at Project Syndicate, billionaire investor George Soros has warned the British that “economic reality” is beginning to catch up with Brexit voters.The future he is drawing is dark: growing household debt, collapsed consumer spending, and falling living standards.
Soros who worth over £20 billion ($25 billion), known as the one who “Broke The Bank Of England”. Black Wednesday crisis of 1992 he had a role in crashing the pound after he short sold $10 billion of the currency.
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Amid official figures published last week showing that wage growth is now failing to keep pace with raving inflation, which rose following the’s immediate fall after the Brexit vote- Soros wrote:
“Economic reality is beginning to catch up with the false hopes of the general population. They believed the promises of the popular press that Brexit would not reduce their living standards, so they managed to maintain those standards by running up their household debts.”
“Once the experience of June is repeated in subsequent months, households will realize that their living standards are falling and they will have to adjust their spending habits.
“To make matters worse, they will also realize that they have become over-indebted and they will have to pay back their debts. This will reduce the household consumption that has sustained the economy even further.”
Soros added: “we are fast approaching the tipping point that characterizes all unsustainable economic developments. In my theoretical writings, I refer to the tipping point as “reflexivity.”
He warned that Prime Minister Theresa May must change tack and approach Brexit negotiations
According to Soros “economic reality is reinforced by political reality. May, he said ‘could reach an agreement with the European Union on their agenda and agree to continue as a member of the single market for a long enough period to carry out all the legal work.’
“She would also have to atone for the sins of the Tories in Kensington with regard to Grenfell Towers. She could then carry on leading a minority government, because nobody else would want to take her place. There are signs she is prepared to do so.”
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