Billionaire investor George Soros believes the Group of Twenty nations have done better than expected and have gotten ahead of the problems which face the world’s financial system.
“I would say that it is probably the first time that the authorities are actually ahead of the curve, Soros told CNBC on Thursday.
They managed to get more than I expected. They really pulled a few rabbits out of the hat and I think it was a very impressive communique, Soros said.
Leaders of the Group of 20 industrial nations meeting in London on Thursday announced an agreement to increase spending in the next few years to lift the world’s economy, while taking a joint step to increased financial markets regulation.
The International Monetary Fund will see its resources triple to $500 billion in new funds to help poorer nations. There will also be a new credit package worth $250 billion to improve trade flows and $250 billion in special drawing rights for countries.
They managed to put together a bigger package than anybody expected and very importantly the issue of Special Drawing Rights -- $250 billion, Soros said.
That is effectively internationally creating new money and that will help to allow the countries that are not able to print their own monies -- the way we can -- actually to stimulate their economies. I think the way for the rich countries to transfer their allocations to the most needy countries can be worked out.