Nigel Farage continues:

“Mr. Van Rompuy said the euro crisis had now been through a turning point and everything is going swimmingly.  Nothing to worry about chaps, it’s all absolutely fine.  I did, in response, take the mickey a little bit and I did allude that I was taking part in some giant, comic farce, where we try to pretend the world is great even though the ceiling is falling in as we’re saying it.

So there is total denial here.  What they are not facing up to is two things.  Firstly, neither of them dared to mention the ‘D’ word, default.  Now, last week what happened was the private bondholders in Greece saw the value of their investments slashed by nearly 3/4....

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“We sort of pretend that it didn’t happen and it wasn’t really a proper credit event, yet we know that various CDS’s are being triggered.  We also know that yesterday 110 private bondholders, who had held their bonds through German banks, are now taking legal action.

Just to top it all, the thing that almost made me laugh was that yesterday the German Finance Minister said, ‘We must be preparing now, any day, for a third bailout.’  So this idea that the leaders of Europe give that everything is fine, everything is not fine.

You can argue that the ECB, by printing money, has staved off the crisis for a few weeks.  But the fundamentals haven’t changed one bit, the euro is in deep, deep crisis.  I said to Mr. Van Rompuy today, ‘Sir, you are determined but delusional.’ 

They are determined to prop up and keep together this completely failed experiment.  But they know as soon as they give in on Greece, the circus will move on to Portugal, Spain and possibly Italy. 

It seems to me, however much money they borrow, however much money they print, in markets, as I learned from my twenty years trading in them, in the end the fundamentals always win out.  This project in its current shape is doomed.” 

When asked about Germany and Switzerland wanting to repatriate their gold, Farage responded, “Gold and oil are the two dominant assets of our age.  I think in some ways they are more dominant now than perhaps they have ever been.  The instinct of countries like Germany and Switzerland is, yes, let’s get as much gold within our boundaries and within the vaults of our central banks as we possibly can.

Their instincts are that is what should happen.  The question is how exactly do they go about it?  Diplomatically, how do they do this?  Switzerland and Germany are both countries whose governments have some sense and understanding of what monetary systems are.

They understand the risks and they see the risks.  The Swiss because they are wise and the Germans because less than one hundred years ago they went through a total collapse of their monetary system.” 

Farage also added this ominous warning:  “Surely we learned the lessons back in the 1970s that if you artificially create money, you create inflation.  Inflation is a disease of money that is caused by central banks and governments acting imprudently.

When you look at the creation of money, central banks printing money the way they are, whether it’s in Europe or the US, okay, we’re now talking about deflation and the down times, but one of the other worries is what happens if we turn the corner on this?  Just what kind of inflationary pressures are we stoking up by printing money?  No one quite knows the answer to this, but history suggests it may not be pretty.”   

This is an extraordinarily powerful interview with Nigel Farage and possibly his best ever on King World News. The KWN interview with Nigel Farage is available now and you can listen to it by CLICKING HERE.

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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