• KWN | With world markets still in turmoil and gold and silver reasserting themselves once again, today King World News interviewed former LBMA commodities broker and trader and current MEP Nigel Farage to get his take on the situation.
When asked if there is a chance Europe is headed into a depression, Farage responded, “Well I think there is and of course it was banking collapses back in 1931 that really led to things being bad. Now we’ve lumbered ourselves with a European social market model for our labor forces, which leaves us hopelessly uncompetitive with the Far East. Countries like Italy, I mean their industrial production, their foreign and direct investment has collapsed in the last five years. You ask yourself, ‘If the banks go bust, what on earth is going to be left in some of these countries?’”
Nigel Farage continues: “I’m beginning to feel there is a certain inevitability (to a depression) now. The crisis that has been created by all of these mistakes is now bigger than governments themselves. If we get the kind of banking collapses that I now believe are possible, we could be heading into something that we haven’t seen in over 70 years. A Great Depression is not impossible.
It’s just a real mess and there is total confusion, fear, total paralysis actually and know one knows what’s really going on. Six weeks ago the British Prime Minister, David Cameron, said, ‘We have six weeks to save the European economy and possibly the global economy too.’
The deadline was the Cannes Summit, which has come and gone last weekend. You could tell from the European leaders leaving that Summit, their faces like thunder, that nothing had been agreed.
(President) Obama’s face was an absolute picture at the press conference when he described his own incomprehension at actually who was in charge in Europe. And of course he’s absolutely right because we have a European Commission, headed up by Mr. Barroso, we have a European Council, headed up by Herman van Rumpoy and we have a Eurozone Group....
“I mean who is actually in charge of this? This incredible bureaucratic structure of unelected people and the buck doesn’t stop with anybody. So we now face the real doom scenario for the euro that if the Italian government can’t finance its debts, where on earth are two or three trillion euros going to come from to bail out Italy?
So it looks to me, and I’ve been saying this for some time on your program, that I always felt this thing would fail. But I think we are very much nearer to the failure being really huge and possibly very dramatic indeed.”
When asked about leaders in countries inside of Europe beginning to question their various central banks because they are worried about the whereabouts of their gold, Farage responded, “Huge ruse as you say. Big suspicion in Germany as to where the gold is. The Greeks, of course, have demanded that the Germans give back their gold that they believe was taken from them in World War II.
And of course the British government, where Gordon Brown famously sold most of our gold reserves at $284 an ounce. So gold is not just a big play in the financial markets, it’s a big play in the whole debate in the architecture of the current Eurozone woes.”
When asked if he believed European central banks had leased out most of their gold, Farage responded, “I just don’t know the answer to that question. But if I look at just how poorly the central banks had performed over the last decade or so, frankly nothing would surprise me. There seems to be almost no limit to the stupidity of these people.”