“He Is Going To Fail”: Georges Soros Slams “Would Be Dictator” Trump
Tyler Durden, Zero Hedge, Jan 19 2017
George Soros told Bloomberg TV in Davos that euphoria among stock investors since the victory of Donald Trump will end as uncertainty takes over. Soros was one of Hillary Clinton’s biggest donors, and spent millions to prevent Trump from entering the White House. In an interview that may have been even gloomier than his last address to Davos in Jan 2016 (when he said he was short the market, predicted a Chinese hard landing and said the Fed’s hike was a mistake), on Thursday Soros unleashed the hate, saying that Pindostan had elected a would-be dictator as president, the EU was disintegrating, that British PM May won’t last long, and that China is poised to become yet more repressive. He said:
Uncertainty is at a peak, and actually uncertainty is the enemy of long-term investment. I don’t think the markets are going to do very well. Right now they’re still celebrating. But when reality comes, it will prevail.
The WSJ reported last week that Soros lost nearly $1b as a result of the stock market rally spurred by Trump’s win. Soros became more pessimistic immediately after that. But stocks rallied on expectations that Trump’s policies will boost corporate earnings and the overall economy. The key highlight of the Soros interview was this vicious slam at Donald Trump:
I have described him as an impostor and a con-man, and a would-be dictator. Trump would be a dictator if he could get away with it. It’s impossible to predict exactly how Trump will act, because he hasn’t actively thought it through himself yet. He was surprised when he won. He only started thinking seriously about what he would do after he was elected. I’m personally convinced he’s going to fail. The policies that guide him are inherently self-contradictory.
Some other notable quotes via Forexlive, (reassembled into a continuous narrative by moi – RB):
Trump stands for a government that’s the opposite of an open society, something like a dictatorship or a mafia state; Trump believes his ideas are the will of the people, so anyone who is against him is against the people; Markets will falter as uncertainty takes over. Europe is currently going on the wrong direction. If Europe breaks down, the consequences will be very dire. But I do see a way it could be saved, and this is also recognized by many of the people in Brussels. They can’t say so publicly, but they know that Europe is not functioning. It is unlikely that PM May is actually going to remain in power, as she has a divided cabinet and base, and Britons are in denial about the economic impact of Brexit. Inflation will be the force that will lead to declining living standards in Briatins, though it will take some time. Trump is definitely gearing up for a trade war with China, which is irreconcilable with economic prosperity. Trump is doing more to make China an acceptable leader of the international community than Chinese could do by themselves. China is at a decision point. It must choose whether to become a more open or closed society, as it transitions to a consumer-led economy. China has not actually succeeded yet in changing its growth model, and probably won’t do it in the next two years, because Pres Xi wants to maintain an unsustainable rate of growth. Pres Xi is doing that by rekindling the furnaces and producing more goods that are already in supply. If Trump names China a currency manipulator, they will retaliate. A trade war can easily spiral into a real military conflict. I hope the people who believe in an open society can get together.
He concluded by expressing his frustration with the recent Hungarian crackdown on his various NGOs, reading from a pre-written statement and saying that the processes taking place in his native country impair human values and democracy.