by Warner Todd Huston | August 12, 2015 12:02 pm
A well known financial advisor is now saying that a major recession is inevitable now and that it is going to severely depress the U.S. economy in a wave that will be worse than the 2008 financial mess.
The folks at Business Insider have published the warning by Societe Generale strategist Albert Edwards and the warning is NOT good!
In his new note, Edwards says the Chinese currency devaluation is the beginning of a period of serious foreign-exchange weaknesses in Asia.
This will force down import prices into the US and EU economies, aggravating a deflationary cycle that hits corporate profits and ending in a Lehman-style crisis:
“We expect the acceleration of EM devaluations to send waves of deflation to the west to overwhelm already struggling corporate profitability and take us back into outright recession. As investors realize yet another recession beckons, without any normalization of either interest rates or fiscal imbalances in this cycle, expect a financial market rout every bit as large as 2008.”
There are already signs a strong dollar relative to other currencies is pushing a “tidal wave” of deflation toward the US shore.
Are we about to have another major crash?
Source URL: https://rightwingnews.com/democrats/warning-overwhelming-wave-of-deflation-poised-to-strike-us-economy-to-suck-us-into-recession/
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