The planet’s biggest economy is showing worrying signs that it’s set to crash, according to James Garrick, economist for Legal and General Investment Management (LGIM). The investment firm looks after millions of pounds worth of British pension savings and has now started to reduce risk amid “signs that things are going wrong,” said Mr Garrick.

He issued a similar warning over the American economy in December 2007 and sees a likeness in conditions then and now. The expert believes the US economy could start deteriorating next year, and be in a full-blown recession by 2018. Separately, global think tank the OECD today also warned the US outlook had dimmed and cut growth forecasts to 1.8 percent this year, from its previous forecast of two per cent. READ MORE