(TRUNEWS) Albert Edwards, an analyst from french bank Societe Generale, predicts global deflation is going to wipe out 75 percent of the value from the S&P 500.

Edwards’ warning comes on the heels of last weeks drastic and ongoing devaluation of the Chinese currency, tanking oil prices, and major stock selloffs throughout the worlds markets.

In his stark investment note to clients Friday, Edwards blamed the present market turbulence on the Federal Reserve and its British and European central bank counterparts for introducing Quantitative Easing (QE) schemes to their markets, which first began the inflation in prices globally.

QE went main stream in 2008 as a response to the financial crisis, and is the practice of ‘printing’ money through a nations central bank and using the extra cash to buy bonds and financial assets, essentially artificially inflating prices and value.

Edwards believes QE has pushed up global asset prices, setting nations up for a disastrous fall.

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.”

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?
“But unlike 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 themselves in.”

Edwards concluded from his analysis that western service sectors won’t be able to withstand the pressure from Chinese deflation.

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 underworld.”

The bankers outspoken pessimism on the global economy have been echoed by other leading figures in recent days.

Legendary investor and known globalist George Soros said, “I would say it amounts to a crisis. When I look at the financial markets there is a serious challenge which reminds me of the crisis we had in 2008.”

The Royal Bank of Scotland (RSB) in their own advisory investment memo last week, told their most wealthy clients to ‘sell everything’ except high value bonds.

Rick Wiles of TRUNEWS said during the Thursday and Friday episodes of his show last week, that based on current economic data he expects an “80% drop in the DOW jones over the next year.” He also noted that the current fiscal turmoil the world is beginning to experience, is really an outward reverberation of the disastrous financial decisions made by centrals banks and governments back in October 2015.