Soros says there is an asset bubble in both US and China markets

"China's asset bubble makes it ``very difficult to find vehicles for investing'' there, Soros said. That's a problem when you consider China is the only real source of growth in Asia, a region increasingly dependent on its demand for goods.

In the U.S., record current account and budget deficits are spooking investors who wonder if the world's No. 1 economy is living too far beyond its means and that a day of reckoning is near. The euro gained 16 percent versus the dollar in the last 12 months, while the yen gained 14 percent.

``Since the decline of the dollar in the short term is beneficial for the U.S. economy, the authorities actually like it,'' Soros said. But when currencies drop they ``tend to actually pick up speed'' and ``it's a very dangerous game because it can get out of hand.''

Not one to hide his distaste for U.S. President George W. Bush, Soros donated $12.5 million during the past year to two independent advocacy groups opposing Bush's re-election. "