Is the world on the verge of another major financial crisis? One billionaire warns that could very well be the case.

Billionaire George Soros, one of the world’s most successful investors, says sd the dollar surges and a capital flight ensues from emerging markets, the world could be facing another major financial crisis.

In a speech in Paris on Tuesday, Soros explained why the world’s financial market is at risk, according to an article by Nikos Chrysoloras and Helene Fouquet for Bloomberg.

From the article:

The “termination” of the nuclear deal with Iran and the “destruction” of the transatlantic alliance between the EU and the U.S. are “bound to have a negative effect on the European economy and cause other dislocations,” including a devaluing of emerging-market currencies, Soros said in a speech in Paris on Tuesday. “We may be heading for another major financial crisis.”

Among other recent problems within the European Union, Italy sent its financial market spiraling when, late last week, a populist movement within the country attempted to make the president accept its choice for finance minister, Paolo Savona, a critic of the euro.

The president vetoed the nomination and appointed a new prime minister, however the new prime minister is expected to lose a vote of confidence in the Italian parliament, which could lead to a new election as soon as July.

As populist movements continue to gain ground in Europe, many politicians are beginning to fear a repeat of Brexit.

And all of this chaos in Europe is beginning to make its way across the Atlantic. A new report from Seeking Alpha explained banks in the U.S. are taking a hit as investors worry about Europe’s political dramas.

U.S. Treasury yields are also falling. In fact, Fed Funds are now forecasting just a 78% chance of a rate hike at the Federal Reserve’s June meeting, down from the previous forecast of a 94% chance of a rate hike.

As one expert puts it, “The Italian vote will probably be sometime this fall, so it at least appears as there won't be an immediate resolution,” Brent Nyitray, formerly of iServe Residential Lending, explained in a note to his followers. “Bottom line for the mortgage originators, like the Brits did in 2016, the Italians just might have saved your year.”

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