50-Year Veteran Warns There Is No Way Out Of This As World Heads For Next Crisis

"John Embry:  “I was struck in the last 24 hours by the news of the Austrian bad bank halting payments on $11 billion in debts and referring to a hole in their balance sheet of over $8 billion.  At the same time I noticed that in this new Greek bailout that is being proposed, Spain is going to be contributing 14 percent of the money….

“So we have the bankrupt financing the bankrupt.  This is turning into the theater of the absurd.  It’s symptomatic of the fact that the debt crisis, which started the 2008 global financial crisis, has not gone away at all.

World Debt Over $200 Trillion

It was recently estimated that global debt has grown by $60 trillion since 2008.  The total debt now comfortably exceeds $200 trillion.  So I think this development with the Austrian bad bank should make debt holders everywhere very uncomfortable because I think it’s symptomatic of how much bad paper is out there.

Meanwhile In The U.S.

Turning to the United States, the two fastest-growing private-sector areas of debt in the U.S. since the global financial crisis enveloped the world some 7 years ago are student loans and subprime auto loans.  This isn’t really productive debt in the first place, but an even more disturbing aspect of the situation is that significant quantities of this debt will never be paid back..."

at http://kingworldnews.com/50-year-veteran-warns-no-way-world-heads-next-crisis/