The start of the great compromise of debt in Europe

The start of the great compromise of debt in Europe. John Abernethy, CIO, Clime Asset Management, says that ECB bond buying program will last up to four years and is the start of, The great compromise of debt in Europe. Abernethy says, this is debt that is going to be bought and it will never see the light of day again in our lifetime. It will be rolled over, it will be compromised for decades and it will never be repaid. It's impossible that debt of 16 trillion euros can be paid back to the bond markets of Europe. In terms of consequences for Australia Abernethy points to the recent rally in Australian Governemnt bonds. He highlights that Australian bonds are now 60% owned by offshore institutions - the same institutions that are currently printing money. Effectively buying something real with something that is not real... Watch the full video here (VIEW LINK)


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