by Lana Clements, Express:
CHINA is set to plunge the world into an economic crisis sending stock markets crashing by 75 per cent – with devastating consequences for the US and UK, a leading city expert has warned.
The sinking value of the Chinese currency is already crippling British industry as it can’t compete with China’s cheap exports.
Other Western nations are also feeling the strain. And with even more to come experts have predicted an ‘ice age’ for the world’s economies – including Britain’s.
Global deflation is going to wipe around 75 per cent in value off the American S&P stock market, as western firms will be unable to compete with cheap Chinese exports, according to analyst Albert Edwards from french bank Societe Generale.
He gave the stark warning in an investment note to clients.
And he blamed the upcoming ‘carnage’ on American central bank (the Fed) and its British and European counterparts for inflating prices in the first place.
American Quantitative Easing (QE) – injecting extra money into the financial system – has pushed up global asset prices, teeing up a disastrous fall, Mr Edward believes.
He said: “Investors are coming to terms with what a Chinese renminbi devaluation means for Western markets.
“It means global deflation and recession.
“A commodity bubble and the resultant US shale investment boom were all consequences of the Fed’s QE.
“The illusion of prosperity is shattered as boom now turns to bust.
“But I do hope this time around the Queen won’t ask, as she did in November 2008, why nobody saw this coming!”
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