Soros Sees End of Dollar Backed Credit Expansion

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By Edward Evans and Jenny Strasburg
Bloomberg

Billionaire investor http://www.wvwnews.net/story.php?id=917 said the post-World War II era of easy credit backed by the U.S. dollar will end as the nation’s economy slips into an “almost inevitable” recession.

“The current crisis is not only the bust that follows the housing boom, it’s basically the end of a 60-year period of continuing credit expansion based on the dollar as the reserve currency,” Soros said in a debate today at the World Economic Forum in Davos, Switzerland. “Now the rest of the world is increasingly unwilling to accumulate dollars.”

A U.S. recession is all but certain as lenders and investors stop the flow of credit, while the global economy probably will avoid contraction, http://www.wvwnews.net/story.php?id=2607, 77, said later in a Bloomberg Television interview. “I think it is almost inevitable that the turmoil in the financial markets will affect the real economy,” said the founder of New York-based hedge-fund firm Soros Fund Management LLC, which has $17 billion in assets. China and India are benefiting from globalization to a degree that “I don’t expect a global recession.”

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2008-01-23