"The fundamentals have not changed. The fundamentals are that the West is living way beyond its means, it's got bad governments that are relying on money printing, and it has banks that at some point will be unsupportable." - UKIP Leader Nigel Farage MEP on King World News.
• Speaking to KWN's Eric King, April 19, UKIP Leader Nigel Farage elaborated on his recent speech at the debate on the situation in Cyprus in the European Parliament, Strasbourg, 17.04.2013.
Mr Farage said the EU authorities acted like "common criminals" when they decided on a bail-in from depositors' accounts in Cypriot banks.
"A precedent has now been set and when the Spanish banks face their nadir, they found the solution to how they're going to fund it: they're going to steal money from big bank accounts, possibly even from small bank accounts," he warned.
"And there's now a new German proposal which says they will even confiscate a percentage of the value of your house."
"The European Union is now the new Communism. I have no question or hesitation in saying that. These people are prepared to do anything to prop up their failed model."
Mr Farage also spoke about the recent gold buying rush, fiat money, Margaret Thatcher's legacy and the rise of fascism across Europe.
"This is the first time that the European Parliament has met since the Cyprus crisis and since the most astonishing behaviour. What these guys did was to decide that the next phase of dealing with the bailouts in the failed eurozone countries is to resort to behaving like common criminals.
"And they also violated the rule of law. Because they promised in 2008 that there was an EU Deposit Guarantee Scheme that any investor of up to a 100,000 euros would be protected, and yet the first proposal for the Cypriot bail-in as opposed to bail-out was that they would even take 7% from small investors too.
"So I was pointing out a few home truths which they didn't like, but I know something for certain: a precedent has now been set and when the Spanish banks face their nadir, and it's coming, make no doubt about it, they found the solution to how they're going to fund it. They're going to steal money from big bank accounts, possibly even from small bank accounts, and there's now a new German proposal on the table which says they will even confiscate a percentage of the value of your house.
"We have not seen this sort of thing going on in Western Europe since the 1930s and 40s, hen the Nazi regime did this to people they hated. And isn't it ironic that in the middle of all this we have the Russian prime minister Dmitry Medvedev actually saying to the EU: 'You are now behaving like the Soviet Union used to.'..."
"And actually, the European Union is now the new Communism. I have no question or hesitation in saying that. These people are prepared to do anything to prop up their failed model.
Asked about the incredible gold buying binge that is taking place all over the world Mr Farage said:
"The authorities do not want gold to be fashionable in any way at all. They loathe the fact that the price of gold has risen the way that it has because it's an indicator of how little trust we have in fiat currencies, in quantative easing, in money-printing and all the rest of it, so any opportunity to see the gold price lower is a good thing from their perspective.
"But there is the hand, of course, of the European institutions in this as well, becuse they are telling Cyprus they must sell some of their gold,and... the Italians have the fourth or fifth biggest stock of gold in the world - what happens if they're forced to sell?"
"The market is going to find a base somewhere... when the averages break down markets tend to have a bit of a life of their own."
"But I think if we do get forced liquidation from European central banks - if we do get a cheap gold price - it will represent one of the greatest, historic buying opportunities of anything you will see in your life-time.
"Because the fundamentals have not changed. The fundamentals are that the West is living way beyond its means, it's got bad governments that are relying on money printing, and it has banks that at some point will be unsupportable."
Eric King: “As I told you, Nigel, there was massive demand over in Canada (at) ScotiaMocatta, people literally lined up for hours and hours to get physical gold and silver. And that was confirmed also in Keith Barron’s interview here on KWN that this was happening in Switzerland at UBS. People aren’t being fooled here (by the recent takedown), and they are just trading in fiat money for real money. I’m just curious what your thoughts are because they (central planners) don’t seem to be fooling anybody?”
Farage: “No they are not. We are now incredibly cynical about our government, about our central banks, about all of the things that we are told. They are sure signs, if people are queued up around the block to buy physical gold, that people are scared....
“They don’t believe what they are told. Exactly when the moment is I don’t know, but all I would say to people who have been building into a gold position over the course of the last few years, and doing it for all of the right reasons that King World News has advocated, don’t panic. Don’t worry. This is a buying opportunity, not the moment to panic.”
Eric King: “There’s a loss of confidence. You were discussing the criminality, and trying to give them a lecture over in (European) Parliament, but people are losing faith in governments and the system.”
Farage: “Yes. One of two things will emerge from this because in the end if people lose confidence, they give up on their established political parties and they seek alternatives.
And it’s a theme that I’ve used before, but perhaps it’s even more salient today than it’s ever been, I just hope that we are able to find, particularly across Europe where the problem is the most acute, political alternatives that people start to vote for that conform to sensible democratic norms.
The alternative of course is that we do get a new kind of fascism that sweeps Europe. I become more worried with every month that goes by that perhaps they (fascists) are the alternatives people will seek . It is very, very worrying.”