Billionaire investor George Soros has once again added his voice to the ongoing debate over stimulus versus budget cuts. After recently criticizing Germany for its budget cuts, he clearly says the U.S. shouldn't cut stimulus measures yet because the economy hasn't strengthened enough and there are no signs of inflation, Bloomberg reported.
"I think the timing is wrong with withdrawing the stimulus," Bloomberg quotes Soros, who spoke at the Hamptons Institute in East Hampton, N.Y., on July 16. "Cutting employment benefits, cutting aid to states that are losing tax revenue, these are counterproductive because you can only grow your way out" of the financial crisis, said Soros.
This is inline with President Barack Obama's call over the weekend that Republican senators stop blocking legislation to extend unemployment benefits.
Soros further said the bond markets would tell the U.S. government when it was safe to cut spending as interest rates would begin moving up.
George Soros Says U.S. Shouldn't Cut Stimulus