Societe Generale said on Thursday that the United States’ economy looks likely to enter a depression and China’s could implode.
Edwards also raised the danger of a global trade war with China.
“While economic data in developed economies increasingly reflects depression rather than a deep recession, the real surprise in 2009 may lie elsewhere,” Edwards wrote.
“It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan. A subsequent trade war could see a re-run of the Great Depression.”
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Tags: China, Economic meltdown
