George Soros: U.S. Dollar Attractive, China Overheating

George Soros, co-founder of the famed Quantum Fund, expressed the following thoughts to Bloomberg, while at Davos:

(1) The U.S. dollar is a weak currency, but looks attractive relative to the other currencies.  The euro and the sterling have their own problems.  Some other attractive currencies are the Norwegian krone and the Brazilian real, but these currencies have already had their value bid up with ease due to their relative smallness.  Also, he says that the renminbi is attractive, but an existing market for it does not exist.

(2) Soros has been active in the Chinese market, but currently the government has to slow down the overheating of the economy.  Believes it’s best for the Chinese, both domestically and internationally, to let the renminbi float.

(3) Also, he stated that commerical banks should be separated from the financial markets.  Yet, the Obama-Volcker plan does not deal with non-bank entities that are too big to fail.

Tagged with Bubble, China, China Overheating, George Soros, Krone, Obama-Volcker, Real, Renminbi, U.S. Dollar