FXStreet (Delhi) – Albert Edwards, Research Analyst at Societe Generale, suggests that investors are coming to terms with what a Chinese renminbi devaluation means for Western markets. Key Quotes “It means global deflation and recession. The coming carnage is an indirect result of the failure of the Fed’s QE. It may not have done much to boost US growth, but it certainly inflated global asset prices into the stratosphere. The one area though, where US QE did unambiguously boost growth was in emerging markets (EM) as surplus money poured into these supposedly superior investment opportunities, leading to massive EM foreign exchange intervention to hold their currencies down. This turned ineffective US QE into very effective EM QE in terms of boosting EM economic growth. 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.” For more information, read our latest forex news.