• UKIP leader Nigel Farage gave King World News an extraordinary interview (07.07.2012). Farage told KWN, “As we speak - we’re doing this interview live - the Spanish 10-Year bonds are trading back over 7% again. Nothing has been solved.”
“But the other point that I was making this week was that this bailout fund, this European Stability Mechanism, which is supposed to have firepower of up to 700 billion euros - it doesn’t actually exist. It’s imaginary.”
“We had this summit two weeks ago. The usual sort of thing, all sorts of horse trading going on right into the early hours of the morning. Then at about 4:30 in the morning an announcement gets made, there’s been a breakthrough, well, of course they always say that don’t they?”
Nigel Farage continues:
“We’re told the bailout fund is now going to be more flexible, that it can bail out banks directly and not have to go through governments. For a few hours the markets believed them and there’s a rally. And then, in a very short space of time, it all starts to unravel.
Perhaps the biggest unraveling was that the Dutch and the Finns, who apparently had been in the meeting, said, ‘Look guys, we didn’t agree to this. We just didn’t agree to this.’ So when van Rompuy came to the European Parliament, he sort of parroted the word ‘breakthrough,’ though without very much passion or feeling.
I was able to say, ‘Look, this is complete nonsense. There is no breakthrough.’ As we speak we’re doing this interview live, the Spanish 10-Year bonds are trading back over 7% again....
“Nothing has been solved.
But the other point that I was making this week was that this bailout fund, this European Stability Mechanism, which is supposed to have firepower of up to 700 billion euros, it doesn’t actually exist. It’s imaginary.
And before it’s even setup, we have a legal challenge in Ireland. We have a legal challenge in Germany, through their Constitutional Court. We have the Estonian Justice Minister saying that it contradicts their constitution, and therefore will need a change in their Parliament to their law. I mean this thing is all over the place.
So frankly I think that not just the credibility of the institutions and the mechanisms, but as I said this week to my old friend Herman van Rompuy, these guys, him and Barroso, they have no credibility, internationally, at all. They have no respect within the eurozone itself.
I’ve just got this feeling that as we come up to the Parliamentary recess, for the whole of August everything will be closed, and I’ve just got a feeling we’re in for a long hot summer on the market.”
Farage had this to say regarding gold: “I absolutely stick to the view that we’ve had that market shakeout. Given the risk that we see, not just in the eurozone but more seriously the risk to the banking system, gold is the right place to be.
Anybody with an investment portfolio should have a good gearing in gold, and should even consider adding to it over the course of the summer.”
The text above was just a small portion of what Farage had to say in this extremely timely and important interview. He tells KWN listeners globally what to expect next in this ongoing crisis and how it should impact markets. The KWN interview with MEP Nigel Farage is available now and you can listen to it by CLICKING HERE