Soros: Europe at risk of deflation

Billionaire investor George Soros has warned Europe could see a bout of deflation if harsh austerity measures wanted by Germany are implemented.

Soros, the chairman of Soros Fund Management and the man who famously bet against the pound in the early '90's, said the eurozone nations would have to deal with deflation if plans to impose severe austerity across member states were brought in. According to Dow Jones, he said: "The austerity that Germany wants to impose will push Europe into a deflationary debt spiral." His warning comes as european nations hold further talks to tackle the problem of sovereign debt burdens across the region. Markets have already reacted to the sovereign crisis, with yields on government debt across E...