Bill Gates in Saudi Arabia warns of U.S. financial bubble

Philanthropist and Microsoft co-founder Bill Gates warned of a financial bubble in the United States that risked bursting in the near future, Saudi Arabia’s AlRiyadh newspaper reported Thursday.

Financial crises take place because capitalism is subject to a financial and economic cycle, the billionaire said at a press conference in Jeddah.

Gates was participating in the 40th anniversary of the Islamic Development Bank, according to the daily.

Gates argued that people tend to forget about the cycle and begin taking financial risks and pumping money until a bubble forms and then bursts again, Alriyadh quoted him as saying.

However, he encouraged taking risks and investing but stressed on the importance of education and having universities that encourage investment and risk-taking so that youth in rich countries can efficiently utilize their resources.

Many countries exceeded their potential and achieved economic miracles by relying primarily on education, and Saudi Arabia is following the path of successful countries in the educational sector, he added.

Meanwhile, Gates forecasted that agricultural production would triple in Africa within the coming 15 years, thank to better seed breeds and fertilizer, added the newspaper.

Agriculture is a major pillar for the Bill & Melinda Gates Foundation, which works to improve lives of communities in the developing world, through developing integral sectors such as education and heath, among others.

Gates also spoke about his cooperation with the King Abdullah University of Science and Technology (KAUST) in the field of agriculture.

He said he was pleased that the university was working in the right direction and said he would collaborate further with it to benefit from its research in the area of agriculture.

The billionaire met with Prince Salman bin Abdulaziz, the country’s crown prince and deputy Prime Minister, and praised humanitarian work and philanthropy in Saudi Arabia’s, saying that the kingdom “provides for poor countries through the Saudi Industrial Development Fund, and is the biggest supporter of governments in the region.”