Soros predicted the acceleration of the financial crisis due to Brexit

Britain’s decision to withdraw from the European Union (Brexit) “unleashed” the crisis in the financial markets, similar to what began in 2007-2008, said the American financier George Soros, speaking in the European Parliament on Thursday.

He noted that so far the crisis “spin slowly”, but now because of Brexit it will accelerate, reports Bloomberg. “Probably, he (Brexit) will strengthen deflationary trends that have already been distributed,” said Soros.

The banking system of continental Europe because of the restrictive monetary policy has not yet recovered from the previous crisis and it will now need “serious test,” Buffett said. According to him, the way to counter known is the use of the stabilization Fund Eurozone (European stability mechanism). “Unfortunately, political and ideological differences within the Euro area stand in the way [of its use],” said Soros.

The results of the referendum in the UK mean that “the hypothetical became very real,” he added. “The pound fell, Scotland threatens to secede, and some people from the working class that supported the campaign for an exit (from the EU), are beginning to realize the bleak future that will the country, and him personally,” — said the billionaire.

Soros, whose fortune Forbes estimates at $24.9 billion (23rd place in the global ranking of billionaires), June 21, said in a column in The Guardian that if Britain decides to withdraw from the EU, the pound could fall by more than 20%. This devaluation will be “stronger and more destructive” than during the “black Wednesday” in September 1992 when the British currency fell by 15%, he warned.

Two days later in a referendum the majority of British people (51.9 per cent) voted for the country’s withdrawal from the European Union. After that the rate of the pound against the dollar fell to its lowest level since 1985.

For its part, the George Soros after the referendum said that the breakup of the EU was “practically irreversible”. He noted that in the short and medium prospects of the economy and the people of the UK “would suffer greatly”.