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Kirill Ilinski gives insights on global markets and eurozone crisis interview with RT Television

Fusion Asset Management Managing Partner and Chief Investment Officer Kirill Ilinski gave an exclusive extended interview to RT as part of their coverage of the eurozone crisis and ongoing global financial stress.

Ilinski said: “Every stage of the financial crisis is on a bigger scale and is considerably more difficult to get out of. Every time you put in more money, the efficiency of putting in money is going down. Money disappears from problematic areas into areas which are not affected. It’s going into emerging markets, increasing labor costs there, increasing inflation, making emerging markets less competitive and less able to pull developed countries from the crisis. So the more money politicians put in the system, they effectively are killing the centers which are supposed to drag the whole economic system out of the crisis.”

But Ilinski added that bailout or no bailout, fixing the ailing world economy will be a very long process.

“If we look back at how the post-war debt was watered down and how it was dealt with, it took ten-plus years. It’s a very slow process; there is a huge amount of debt. And the United Kingdom is probably the worst country in terms of total public and state debt, which is now around 450 per cent of GDP – worse than Italy and worse that the United States, although those are the most publicly known issues. There is also hidden debt, which is coming from pension liabilities. We don’t talk much about it, but actually it is a huge amount. There is no easy way. We over-consumed, we borrowed this debt, and we need to pay it back,” he said.

Watch the full interview on the RT website