Thirty-first U.S. President Herbert Clark Hoover once said: "Blessed are the young, for they shall inherit the national debt."

Governments around the world are borrowing heavily to finance their fiscal expansion – unprecedented in size and scale – to prevent severe economic downturn.

However, outspoken independent economist Roger Nightingale thinks fiscal stimulus will not work.

He predicts a severe, Japanese-style recession to hit major and developing markets.

"There is no way out of this problem. Fiscal policy won’t help it at all," he told a conference in London.