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 push 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. » | Lana Clements | Thursday, January 14, 2016
