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Nigel Farage - Catastrophe Imminent & Gold to Break $2,500

With Europe desperately trying to stabilize Greece, today Nigel Farage told King World News that, despite the bailout, downside risks in the banking system are still enormous. He also said a modern day catastrophe is about to occur. But first, here is what Farage had to say about the ongoing crisis in Greece: “I want to just share with your listeners, Eric, the state of things in Greece. We have 50% unemployment amongst young people in Greece. 25% of all commercial companies have gone bankrupt in Greece in the last four years. We have now thousands of people in Athens literally sleeping in cardboard boxes in the streets. We have families giving up their kids for adoption because they feel they (the children) would be better off if someone else looked after them because they simply can’t feed them.”

Nigel Farage continues:

“Let’s empathize with these poor people in Greece. We (the EU) are driving them into something that is truly appalling. We saw two weeks ago those television pictures of buildings in Athens burning and 80,000 people outside the Greek Parliament, literally storming the Parliament trying to get in.

5,000 armed police stopped them from getting in. This is a modern day catastrophe that is about to occur. And all that’s happened overnight with this agreement, that Greece will now take another bailout, is we are guaranteeing these problems can only get worse.

This (agreement) was expected and predicted last week when I spoke to you. The Greek government has been forced to borrow another 130 billion euros and this from a country that can’t service the existing debt. The whole thing is complete madness....

Continue reading the Nigel Farage interview below...

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“I saw a photograph today of Christine Lagard, from the IMF, based in Washington. There she was smiling and applauding Mr. Papademos, the new Greek ‘puppet‘ Prime Minister, appointed by the European bureaucrats and I almost felt like being sick.

It is just appalling what is happening. This is not going to save Greece. This is not going to help the Greek people. This will do nothing for the global economy. All we are doing is we’re kicking the can down the road and delaying the inevitable bankruptcy that Greece faces. At some point, in 2012, Greece is going to leave the euro. She should never have joined it.

During the Great Depression of the 1930s, England went through a very bad time and we finished up with hunger marches and strikes and terrible, terrible social discord. During that time from ’31 to ’36, the British economy contracted by 10%.

Greece has now been through five years of recession. The economy has contracted by 14% already, but towards the end of 2011 the decline accelerated and the projection is now that the Greek economy will decline by a further 7% this year. This will take us to an over 20% decline in six years.

Farage had this to say about systemic risk and gold: “My view on gold has not changed for a very, very long time. The downside risks for the banking sector are still absolutely enormous and therefore the knock-on effect on gold is huge. Ever since we’ve been above $1,500 I have been cautious by saying hold gold.

I’m tempted (now) to think if you’ve got a big portfolio and you don’t know what to do, you should buy gold. It is more likely that the price of gold will be between $2,500 and $3,000 an ounce 18 months from now, than it is that the price of gold will contract and go back to $500 to $1,000. So hold gold, absolutely I stay with that view, but if you put me up against the wall and asked, ‘Are we buying or selling it?’ I wouldn’t be selling it.”

This is an extremely powerful interview with Farage. The KWN interview with Nigel Farage is available now and you can listen to it by CLICKING HERE.