The European Central Bank announced a 1.1 billion euro QE program last week. George Soros, the billionaire investor, is warning all investors of the bubbles that will arise on the stock market in the eurozone.

His biggest worry is that it will create an even bigger difference between the rich and the poor. At least, that is what the successful investor underlined during the World Economic Forum in Davos. George Soros feels that the QE program will mostly benefit those who have investments and that it will put pressure on wages because of heavy competition and unemployment. It will also have an effect on the international currency markets. The magnitude and the duration of this monetary injection will have its effect without a doubt.

Soros On Monetary Policy

Soros already expressed his criticism of Germany’s monetary policy, for example, but he also has plenty of criticism on the measures that Mario Draghi announced last Thursday for the eurozone. In Soros’ opinion, it is high time for the eurozone to find the balance between monetary and fiscal measures so we can return back to the core of the matter: growth.

The Spanish minister of finance, Luis de Guindos, responded to Soros’ message by saying that he supports the ECB’s move of last week. He also underlined that the deflation in Spain is due to the dramatic price drop of oil. He mentioned that deflation can be a good and a bad thing, but that Spain is now profiting from deflation.