There will be a dramatic rise in interest rates as soon as there are clear signs the U.S. economy is picking up, billionaire financier George Soros told CNBC.

Soros said that the U.S. needs to reestablish growth to help shrink its debt pile and that the Federal Reserve's policy of buying U.S. debt, is the right one since it doesn't add to the net amount of debt outstanding. "It's about as close to a free lunch as you can get," he said.

But there is a risk, Soros warned, "Once the economy gets going, then interest rates are going to take a big leap."

He called it a "delicate two-phase maneuver," where first the Fed throws more money at the economy and then as the economy picks up the money needs to be taken back out. But as money comes out of the economy, it could arrest the recovery.

Soros expects interest rates to jump this year as soon as there are clear signs the economy is on the mend.

"It may already have begun," Soros said of the move in rates. "I think it's most likely to happen this year. Once you're past the uncertainty about the budget and investment decisions are made I think you'll see it."

David Fuller's view Fullermoney holds a similar view.

Soros is also interesting on Europe, which you will see from the quotes and particularly the video which was recorded at Davos on 24th January. OK, Soros is not Austrian School but I think he describes the situation reasonably accurately.