Legendary investor George Soros is in Hong Kong for the INET conference.
CNBC’s Bernie Lo has an exclusive interview with him.
Lo joked with Soros, saying that there are reports that the investor made a billion dollar shorting the yen. He continued by asking him if he’s trying to break the Bank of Japan.
“I think the Bank of Japan is eager to have people do that,” said Soros.
He went on to discuss how to fight deflation. One way to break the trend would be to have aggressive monetary policy.
But he also said that there should be fiscal stimulus so that monetary policy doesn’t increase debt outstanding.
“What Japan is doing is quite dangerous,” he said, noting that this only comes after 25 years of stagnation.
Soros believes that the big risk is that once Japan starts easing, he won’t be able to stop.
“The amount of quantitative easing is the the same as what they’re doing in the U.S.” he said noting that Japan is a third of the size of the U.S. Effectively, Japan’s stimulus is three times bigger than the U.S.’s.
More to come…