• Germany's news in English
 

Soros: German austerity could spark currency war

Published: 25 Jan 2013 14:41 GMT+01:00

Speaking Thursday evening at the World Economic Forum in Davos, Switzerland, the billionaire renewed his criticism of Berlin's focus on restrictive fiscal and monetary policy to solve Europe's sovereign debt crisis.

"The rest of the world follows a different recipe from the Germans. Germans believe in austerity, and the rest of the world believes in quantitative easing," Soros said in an interview, according to news agency Reuters. "I think the biggest danger is actually, potentially, a currency war."

Hungarian-born Soros is famous for making $1 billion in 1992 by betting against the British pound on global currency markets.

Despite his criticism of Germany's handling of the euro crisis, Soros said the immediate threat to Europe's single currency appeared to be receding.

Soros said Germany would always do "the minimum" to ensure the euro's survival, Bloomberg News reported. And as other countries pursued looser monetary policies than the European Central Bank, Europe's currency was bound to strengthen in the coming months.

“I generally don’t know how far things go but I can see which way they are going,” he said. The trend is for the “euro to rise and the yen to fall.”

The Local/mry

The Local (news@thelocal.de)

Your comments about this article

15:24 January 25, 2013 by Berlin fuer alles
Well austerity imposed on other Eurozone countries has worked for Germany so far so why not keep going? After all if you keep beating a half dead donkey he will continue to move forward a little with no effort needed from the whipmaster.
15:49 January 25, 2013 by TheCrownPrince
Shut up, Soros. I bet you have lost a lot of money because Germany refused to throw money around like mad. Austerity and thriftiness did not do much good for your little bets, did they, Soros? Old fool. If Soros is barking you can bet your are on the right path.
16:01 January 25, 2013 by Berlin fuer alles
You are of course correct @TheCrownPrince. However in light of failing economies of Germany's Euro partners one could view Soros's words as carrying weight too as it is clear the current remedy of austerity is only making things worse throughout the Eurozone and Germany is now getting pulled down too.
16:31 January 25, 2013 by SchwabHallRocks
Soros is only repeating what essentially all the other governments in the world, sans Germany, are doing: increasing the money supply, increasing government consumption to buffer the effects of the recession.

(Yes, we all know that we are borrowing now and screwing over the next generation.)

However, do I actually detect a whiff of bias against Soros because....???
17:26 January 25, 2013 by smart2012
If Germany would have listened to Soros 2 years ago, now it's economy would not be struggling. And many if my colleagues would not have lost their job..
17:53 January 25, 2013 by Tonne
"The trend is for the ¦quot;euro to rise and the yen to fall.¦quot;"

For Soros that is not a prediction but an intent.
18:16 January 25, 2013 by IchBinKönig
'If Germany would have listened to Soros 2 years ago, now it's economy would not be struggling.'

Exactly as is the case in the United States. The National Debt has not been more than doubles in 4 Years, and the Economy is not Struggling.
21:26 January 25, 2013 by jg.
The Soros recipe for success would be to print money and spend it like water - as Greece, Spain, Italy and others used to do, before they joined the Euro and lost the right to print money. Funnily enough, everyone joined the Euro precisely because they wanted an economy like Germany, a currency like the DM and interest rates to match. Those qualities were all earned though strict fiscal policy on the part of Germany.

Currency speculators like Soros make more money from volatile markets, where they can take advantage of fluctuating exchange rates. Stability is abhorrent to them.

In any case, I cannot see Germans ignoring their own history and attempting growth on the back of a mountain of debt and printed money. The USA has been getting away with this as the Chinese have been willing to prop up the dollar to maintain their exports - but it is a dangerous game (just ask the Argentinians).
22:13 January 25, 2013 by US-TommyBoy
Currency war? I thought y'all just used the Euro?

Ignore the talking head Soros. If Germany is to prosper, it must go it's own way.

None of the rest of the Euro trash has the will, the want, the need and the leadership to look a coming crisis in the eye and prepare for it.

In fact, if Germany does not continue to do exactly what Soros does not want you to do, you will be dragged down with the rest of the Euro Trash.

The question is, what is Soros invested in that whatever the Germans do is causing him heartburn?
13:33 January 26, 2013 by zeddriver
@TheCrownPrince

Soros is no fool nor is he stupid. Evil and manipulating yes. One doesn't become a billionaire by being a misguided fool. As others have stated now and in the past. He makes his money by creating doubt and uncertainty. He has so much money in the market. That he can change the market by saying such things. So. He puts money in a certain area. THEN he starts a conversation to move the market in a direction that will benefit HIM. He's like criminal character Auric Goldfinger in the James Bond film "Goldfinger".
18:20 January 26, 2013 by Enough
Soros is a bastard that does everything he can to manipulate situations to his benifet. I would not believe a thing he says nor would I trust him with anything. The world will be much better off the day he croakes!
21:15 January 26, 2013 by GustavSwe
He have been critical and accusing Germany from the beginning of this financial cris. I don't have any respect of that man because doing so.
00:09 January 27, 2013 by smart2012
Guys, before judging Soros please judge weideman and Verkel. They want to avoid inflation to keep the euro strong, but now they r criticizing Japan cause they print money and euro would become too strong. What the hell to they want those guys, strong, not strong or? Soros is right, Germany is killing Europe and its own business. Glad that q4 2012 GDP of super Germany will be -0,5%
12:04 January 27, 2013 by zeddriver
@smart2012

Of course we can judge Soros. Based on his past actions. He will invest in currency A. Then start bad mouthing currency B. Currency B starts to drop. Then currency A goes up. He sells currency A for big profit. Then turns and buys currency B which he had a hand in deflating. Then starts it all over again by now bad mouthing currency A.

I would have no issues with a savvy investor. I do have an issue with a guy that has enough power/money to influence the market in what ever direction he wants.

Soros has absolutely no sympathy nor cares one wit about the nations or the people within. He cares only about his next billion. And all the while. He invests heavily into the left wing socialist agenda. Which preaches hate to any form of free market capitalism. Which is really odd. Because he got rich from said capitalism that he seems to be against.
17:14 January 27, 2013 by Eastard
On a side note... does anyone else think Soros looks like the Emperor on Star Wars after his change to the demon...?

Soros is good at making money without adding value... That is why he wants Socialism... he knows how to use it... I would say that he is not giving away any tips on economic management unless they would help his money quest... If you look around the world he funds anything that can be used to manipulate (to his interest) the people of different countries... Listen to him... do not use his direction or guidance... he has a history of intervention to his profit...
22:52 January 27, 2013 by zene
From what i know about Soros, he is a smart and respected guy in his field. And those who claim that he manipulates the market by making such statements are being naive. We are a couple of centuries ahead of the time when this was possible. May be if he "publicly" donated a percent or two from his wealth, people would be less envious and have a positive opinion of him.
15:50 January 28, 2013 by smart2012
U did not answer me on Japan case.... Do u then agree with me?
Today's headlines
Guardiola: Schweini must decide on future
Photo: DPA

Guardiola: Schweini must decide on future

UPDATE: Bayern Munich coach Pep Guardiola said Thursday that Bastian Schweinsteiger holds his future in his own hands amidst reports linking the Germany captain to Manchester United. READ  

Drug-driving trucker kills two police officers
The accident happened on the Autobahn near Dortmund. Photo: DPA

Drug-driving trucker kills two police officers

A truck driver crashed his vehicle into a stationary police car on the Autobahn in North Rhine-Westphalia on Thursday, killing the two officers inside. READ  

Watchdog escapes breast implant fine
A breast augmentation operation in progress. Photo: DPA

Watchdog escapes breast implant fine

A French appeals court on Thursday found German safety standards body the Technische Überwachungsverein (TÜV) had "fulfilled its obligations" in certifying breast implants that were later found to be faulty and sparked a worldwide scare. READ  

Govt 'breaking promises' with new CO2 deal
The RWE brown coal plant in Niederaussem. Photo: DPA

Govt 'breaking promises' with new CO2 deal

Germany's governing coalition came to a major new agreement on carbon emissions on Wednesday evening. But the reported deal has left environmentalists feeling betrayed. READ  

Thais send kidnapper to face Munich justice
A photo used by police to track alleged kidnapper Mario S. Photo: DPA

Thais send kidnapper to face Munich justice

Thai authorities will deliver a man to Germany later this week to stand trial on accusations of kidnapping the wife of a Bavarian banker to finance his lavish lifestyle abroad. READ  

NSA spied on several German ministers: report
Photo: DPA

NSA spied on several German ministers: report

New documents released by WikiLeaks show that the United States did not just tap German Chancellor Angela Merkel's phone but also eavesdropped on several ministers, Süddeutsche Zeitung reported Wednesday. READ  

'Auschwitz bookkeeper' trial nears verdict
Oskar Groening, the 'bookkeeper of Auschwitz'. Photo: DPA

'Auschwitz bookkeeper' trial nears verdict

A former SS officer known as the "bookkeeper of Auschwitz" and a woman who survived the Nazi death camp delivered wrenching testimony in a courtroom on Wednesday as his historic trial neared a verdict. READ  

Assembly robot crushes worker at Volkswagen
A photo of a Volkswagen assembly line, not related to the incident. Photo: DPA.

Assembly robot crushes worker at Volkswagen

A worker was setting up a robot at a Volkswagen factory when the machine grabbed him and pressed him against a metal slab, causing lethal injuries. READ  

Greece crisis
Greek offer 'no basis for discussion': Schäuble
Pro-EU Greeks demonstrate outside the Athens parliament on Tuesday. Photo: DPA

Greek offer 'no basis for discussion': Schäuble

German Finance Minister Wolfgang Schäuble said Wednesday crisis-hit Greece was sending mixed signals in debt talks and called on its government to "clarify its position" before negotiations with creditors can resume. READ  

Weathermen issue snow alert in heatwave
Could this be July in North Rhine-Westphalia? Photo: DPA

Weathermen issue snow alert in heatwave

The German Weather Service (DWD) issued a weather warning for North Rhine-Westphalia (NRW) on Wednesday predicting 5 to 10 cm of snow and winds of up to 60 km/h. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
How to survive the Europe-wide heatwave
Sport
Is Schweini already out of the door at Bayern?
Politics
How German media shaped the Greece crisis
National
Car assembly robot crushes worker at Volkswagen
Rhineland
Weathermen red-faced over heatwave snow warning
Society
An eye for an eye? Mum protects child in playground with pepperspray
National
As it happened: Queen Elizabeth's final day in Germany
National
As it happened: Queen Elizabeth's second day in Germany
National
Queen Elizabeth II's first day in Germany - as it happened
National
Bus passengers tell fake racists where to get off
Politics
What's really in the Queen's handbag?
National
Germans say USA doesn't respect freedom
National
Yes, you CAN buy adult e-books before 10pm in Germany
VIDEO: Watch a 93-metre turbine crash to earth in slow motion
Gallery
Who's got a shot at the German Film Awards
Rhineland
Anger over 'child-free' beer garden
National
How do you do, Majestät?
National
Man defends right to pee in public with tear gas
Features
The Germans who won Waterloo for the British
Frankfurt
Should Germany ban circus animals?
Hamburg
Where people are having the most sex in Germany
Culture
Who Wants to be a Millionaire? Not this student...
National
Dresden's three-decade-long red light
Politics
Upper house calls for gay marriage now
Berlin
Berlin named 3rd-best city worldwide
Sport
In search of the toughest firefighter
Business & Money
German firms shine for European engineering students
Gallery
Hitler's paintings up for auction
National
German's 70-year search for murdered US pilot
Politics
What the G7 leaders agreed at Elmau
Business & Money
What really makes Germans happy
National
Playmobil builder leaves worldwide legacy
National
The car share that became a drug run
Politics
What Snowden revealed to Germany
Rhineland
Why wolf cubs are being raised by hand
National
Hitler's booze cave found
National
Environment makes Germany worth living in
Culture
What's top of the charts in June
Gallery
Germany's most beautiful cycle routes
Business & Money
The business case for Britain in the EU
Rhineland
Why farmers are free to pong up the countryside
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

6,949
jobs available
Toytown Germany
Germany's English-speaking crowd