George Soros, the legendary hedge fund manager, shares his opinion on the US economy and what policies the Obama administration should enact to best get the economy running again in an article for the New York Review of Books.
Soros says that the United States and China have been talking past each other on their respective economic concerns and that the world economy would be better off if they would listen and take each others “recommendations”.
Soros also gives his take on the right and wrong ways to help get the US out of its economic funk:
The right policy is to reduce the imbalances as quickly as possible. This can be done in a number of ways, but cutting the budget deficit in half by 2013 while the economy is operating far below capacity is not one of them. Investing in infrastructure and education makes more sense. So does engineering a moderate rate of inflation by depreciating the dollar against the renminbi. What stands in the way is the misconception that budget deficits must be reduced to help the economy recover, a notion that has been exploited for partisan political purposes. There is a real danger that the premature pursuit of fiscal rectitude may wreck the recovery.