“The U.S. could be poised for a third world war with China and one key to avoiding it could be found in currency accommodation, George Soros said in a recent speech to the Bretton Woods Committee in Washington D.C.
As China’s economy transitions, this could trigger a global military conflict as might other issues in the region, Soros observed. “If the transition runs into roadblocks, then there is a chance, or likelihood in fact, the leadership would foster some external conflict to keep the country united and maintain itself in power,” Soros said. “If there is a military conflict between China and an alley of the U.S., like Japan, it is not an exaggeration to say we could be on the threshold of a third world war. It could spread to the Middle East, then Europe and Africa.”
Not engaging China could be a mistake of historic proportion, he said. “It is in the interest of both parties to find accommodation because the alternative is so unpleasant. There has been a breakthrough in climate policy. There needs to be a similar breakthrough in economic policy. If not, China will align itself with Russia, and then a third war will become real.”
The third world war could already be taking shape in Europe, where “you already has an indirect war between Russia and the west, yet no one realizes this.” Russian military spending is now approaching 10 percent of its GDP, and China has made a similar commitment to spending on armaments, he observed.
After the 2008 collapse, the U.S. was being questioned and the nail in the coffin of world supremacy occurred. It was here history for the U.S. took a decided negative turn, Soros says, as U.S. President George W. Bush’s attack on Iraq “on false pretenses, I must add,” was the point at which the U.S. lost the mantle of global world leader. The U.S. had become sole ruler of world leadership after the collapse of the Soviet Union’s communistic system and in just one short decade lost this title. “This was almost exactly same period of time as Hitler’s” reign in power, less than ten years, Soros noted.
Now the world has broken up into rival camps both financially and politically, he noted, wondering how a catastrophic war will be avoided. “The big question is will they be able to keep the rivalry in bounds.””
Listen the full speech here.