Spark Global Financial ICE AGE With Depression
Sending Markets Crashing By 75%'
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.
By Lana Clements
January 16, 2016 "Information
Express " -
The sinking value of the Chinese currency is already
crippling British industry as it can’t compete with
China’s cheap exports.
nations are also feeling the strain.
even more to come experts have predicted an 'ice
age' for the world’s economies – including
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.
blamed the upcoming 'carnage' on American central
bank (the Fed) and its British and European
counterparts for inflating prices in the first
Quantitative Easing (QE) - injecting extra money
into the financial system - has pushed up global
asset prices, teeing up a disastrous fall, Mr Edward
"Investors are coming to terms with what a Chinese
renminbi devaluation means for Western markets.
global deflation and recession.
commodity bubble and the resultant US shale
investment boom were all consequences of the Fed’s
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!"
extra money into the economy was reaction to the
2008 crisis that was also followed by the Bank of
England and European Central Bank - essentially
creating millions of pounds of extra money to buy
bonds and other financial assets, pushing up prices.
Mr Edwards said: "I believe the Fed and its
promiscuous fraternity of central banks have created
the conditions for another debacle every bit as
large as the 2008 Global Financial Crisis.
"I believe the events we now see unfolding will
drive us back into global recession."
In reference to the central banks, he said: "Why
can't these incompetents understand that they are,
once again, the midwife to yet another global
unfolding economic crisis?
2007, this time around the US and Europe sit on the
precipice of outright deflation.
"Indeed, it is all around us. But don’t expect the
central bankers to comprehend the hole they now find
The analyst said the western service sectors won't
be able to withstand the pressure from Chinese
He said: "When an economy is hurtling towards
recession it is almost always the manufacturing
sector that takes the less volatile services sector
by the hand and leads it into a recessionary
The situation is bound to be a catastrophe for
people and the economy, according to Mr Edwards.
The banker is an outspoken pessimist on the global
economy, but his fears have been echoed by other
Legendary investor George Soros has also said the
Chinese crisis is set to plunge the world into
another economic depression.
And this week RBS urged clients to 'sell everything'
as commodity and share prices are set to plunge.
Generale seconds RBS doomsday prophecy and predicts
collapse of the eurozone
By Kedar Grandhi
- Albert Edwards, a strategist at Société
Générale bank, has warned of an impending global
financial crisis similar to the one that occurred in
2008-09. This time, he said, it could lead to the
collapse of the eurozone.
follows a recent note issued by analysts at Royal
Bank of Scotland (RBS) to investors to
"sell everything" ahead of an imminent stock
market crash. It also comes at a time when global
markets see a short period of relief from the
bearish trend that commenced since the New YEar.
investment conference in London, Edwards said:
"Developments in the global economy will push the US
back into recession. The financial crisis will
reawaken. It will be every bit as bad as in 2008-09
and it will turn very ugly indeed. Can it get any
worse? Of course it can."
explained that while value of currencies in emerging
markets was on the decline, the appreciation of the
US dollar was crushing the corporate sector and that
the credit expansion in the country was not for real
economic activity, but was borrowings to finance
stressed that the US economy was in far worse shape
than what the US Federal Reserve had realised and
that America's central bank had failed to learn the
lessons of the housing bubble that led to the
financial crisis and slump in 2008-09. "They didn't
understand the system then and they don't understand
how they are screwing up again. Deflation is upon us
and the central banks can't see it," he said.
The Société Générale strategist
compared US with Japan and
said that the dollar had risen by as much as the
Japanese yen in the 1990s – a move which had then
put Japan into deflation and caused solvency
problems for banks in the Asian country, according
to The Guardian.
the euro, he said that efforts by the European
Central Bank to push for growth and lower the euro
would not matter in the event of a fresh downturn.
"If the global economy goes back into recession, it
is curtains for the eurozone," he said.
unemployment that would be associated with another
recession would not be accepted by countries such as
France, Spain and Italy. "What a disaster the euro
has been: it is a doomsday machine in favour of the
German economy," Edwards claimed.
said that the declining demand for credit in China
was another sign of the crisis to come. "That
happens when people lose confidence that
policymakers know what they are doing. This is what
is going to happen in Europe and the US."
China opens AIIB, sends
chills to US:
China on Saturday officially launched the Asian
Infrastructure Investment Bank (AIIB) which is seen
as an emerging rival to powerful Western-led
financial institutions such as the World Bank, the
Asian Development Bank and the International
China’s Capital Flight:
Money is pouring out of China as rapidly as it once
poured in. That’s a dilemma for Xi Jinping.
Oil Bust Could End Dollar
US dollar survived the collapse of Bretton Woods in
the ‘70s because its use in crude oil transactions
made it the king of reserve currencies, but can it
survive a collapse of petro dollars? Can the world
survive the catastrophic geopolitical consequences
that would follow?