One of the most startling developments in recent months has been a movement known as Brexit. Brexit is the notion that residents of the United Kingdom would be far better off should the entire nation leave the European Union and become fully independent once more. Many observers of the nation are horrified as they watch what appears to be a movement to convince many Britons to vote in favor of leaving the European Union. This issue will be put to a vote in the coming weeks. Whatever the outcome, one European has made his views about this movement known. Investor George Soros is a native of Hungary who has long made his home in many areas of the world including London, has spoken about his thoughts on the possible negative outcome that may happen in the United Kingdom should the voters decide in favor of leaving the European Union.
A Possible Devaluation
While others are not entirely sure what would result for the lives of ordinary Brits should this vote come to pass, George Soros believes that the ultimate result would be one of devastation for many people in the nation. In his view, leaving could reduce the strength of the British pound and reduce the power of the British to buy basic things. The pound is one of the world’s most stable currencies. However, as Soros reminds people in an article in one the United Kingdom’s most widely read newspapers, such losses have not been uncommon in previous years. In 1992, this currency lost over fifteen percent of its value. George Soros sees the possibility that this could happen again should the nation decide to leave the stability of the European Union for the unknown waters of a separate state. He believes this might undercut the value of the pound both in the short-term and the long-term.
His Own Background
Soros knows a great deal about the workings of the European Union as well as the history of the value of the pound. His own fortune was made in multiple ways including a canny decision on his part in prior years about where the pound would head when compared to the Euro. As a result of his own skill in understanding the workings of the European market, he is widely admired by many people in the fiscal world who value his insights and thoughts on the matter. His words will be heeded by those who wish to consider the many possibilities that leaving the 28 member European Union may pose. Soros has exerted a great deal of influence in the past because of his ability to demonstrate an understanding how the markets of the world are interlocked and influence each other.
Learn more about George Soros: http://www.nybooks.com/contributors/george-soros/