Nigel Farage - They Will Collapse The System & Enslave People

Today MEP (Member European Parliament) Nigel Farage spoke with King World News about what he described as the possibility of, “a really dramatic banking collapse.”  Farage also warned that central planners want to enslave and imprison people inside of a ‘New Order,’ and he described the situation as “horrifying.”

Farage also discussed gold, but first, here is what he had to say about the ongoing financial crisis:  “Governments don’t have the courage to tell the people that we cannot afford to go on living the way that we are.  We’ve really failed very badly in having honest politics, so we have this gross and very grave debt problem.”

“Now everyone has decided, the Bank of England, the Fed, and the European Central Bank, who are utterly brilliant people that have led us to the mess we are in, they’ve all decided that the solution is quantitative easing.  The solution is to go on printing and creating false money in an attempt to buy our way out of the (ongoing) crisis.

My take on that, my historical perspective is that all we are really doing is actually compounding the problem....

“It means that at some point in the future, it may be three years, it may be five years, but at some point in time we are going to get (massive) inflation.  If you devalue money, if you increase the money supply, that is what happens (massive inflation).  We know history has told us this again and again.

It isn’t the euro that scares me anymore.  What scares me is the sheer level of indebtedness, and the fact that so many of our banks in the Western world are just in such serious trouble that we could face a situation where even if governments wanted to bail them out, the problem may become bigger than them.

So I do not discount, at some point, a really dramatic banking collapse.”

Farage had this to say about discussions in Europe where they are looking to cap the interest rates on the debt of both Italy and Spain:  “On a financial level it’s comical because it’s the same money that swirls around the system, which we know in the end doesn’t work.

But the sinister aspect of it is that the intention of men like (Italian Prime Minister) Mario Monti, and my old friend Mr. van Rompuy, is they actually want to enslave and imprison the peoples of these countries inside their ‘New European Order.’ 

And it’s horrifying because ultimately what it means is that people are going to reject and rebel against this.  They will rebel against it with violence, and they will rebel against it with political extremism.” 

Farage had this to say regarding gold: “Short-term, over the next few weeks, I have no idea what the gold price will do.  We are at a period here of incredibly high risk.  We face huge problems with the West’s indebtedness and a very fragile banking system.

I can only repeat that any sensible investor will have a decent percentage of their portfolio invested in gold.  And if things really do go as badly as I think they could, then the gold price could well shock people in terms of how high it goes.”

It Is Absolutely Shocking How Much Gold China is Acquiring

Today Stephen Leeb told King World News, “... there is a controlled desperation in China when it comes to acquiring gold.”  Leeb, who is Chairman of Leeb Capital Management, also said, “They are acquiring as much as they possibly can without tilting the markets dramatically to the upside.”

The acclaimed money manager also stated, “China mined a total of 355 tons, which was by far the largest amount of gold mined for any country.  And yet they are still buying every single available ounce they can get in the open market.”  Leeb was also quick to point out the strength gold is displaying, “Today we have global stock markets under significant pressure, the US dollar breaking out on the upside, and yet gold is holding firm.”

Here is what Leeb had to say about what is happening with Europe, the Chinese and gold:  “Europe is a mess and sooner or later the Europeans are going to have to come to grips with the dire situation they face.  Yesterday, Moody’s put the three AAA countries on credit watch, Germany, Luxembourg, and the Netherlands.”

“Unless the European bank is willing to print money in order to start buying the debt of the failing countries, you are going to have a catastrophe.  The patchwork schemes they have been using are not going to get the job done.  Right now, Eric, as we look at the European crisis, it’s worse now than it has ever been. 

5-Year Spanish bond yields are now trading at 7.6%.  That’s an extraordinary number, and it really says Spain cannot finance anything....

“For practical purposes, Spain has come to a halt unless they get help.  This means lots of money printing going forward and tremendous inflation down the road.  All of this favors the price of gold going dramatically higher.

In the past, when you have seen these kinds of situations, people sell things to get liquid.  The item that is most liquid is gold.  But you are not seeing intense selling of gold today.  I just don’t think gold will go down very much.  If gold does eventually test the lows or break lower, I don’t believe it will go much lower than the previous low. 

In the past, people felt gold could go much lower in a full-fledged crisis, but that is not the case this time.  The Chinese will continue to step in and buy and this is the primary reason gold has remained so strong during this European upheaval.  You have to remember that the stock market is down in China and it is likely to remain down until you see a shift in leadership.

So gold has become increasingly important and China has encouraged its citizenry to buy gold.  With the stock market already frustrating people in China, the Chinese, interestingly, will not want gold to be added to that list of frustrations for their investing public.

In the past, if the Chinese could step out of the way and let gold tumble in price so they could purchase it cheaper they would.  Right now I think they just don’t want to add to their citizen’s frustrations with key markets, gold being one of them.  If I’m right, then the Chinese will continue to support the price of this metal.

I would also note that China mined an unbelievable 20% of their proven reserves of gold last year.  That’s an almost impossible achievement.  That number was reported by the USGS, which is a very credible source for this type of information.

China mined a total of 355 tons, which was by far the largest amount of gold mined for any country.  And yet they are still buying every single available ounce they can get in the open market.  Australia was second with 270 tons.  Keep in mind that Australia has 4 times the reserves that China has.  I have never seen any country mine that percentage of any commodity.  What China has done in truly a Herculean feat.

So there is a controlled desperation in China when it comes to acquiring gold.  They are acquiring as much as they possibly can without tilting the markets dramatically to the upside.

Today we have global stock markets under significant pressure and the US dollar breaking out on the upside, and yet gold is holding firm.  The bottom line is the weak hands are out of gold and China is creating a floor in the market.  So if your downside is around $1,520 and your upside is many thousands of dollars, I would buy.”

Embry: We’re On The Edge of Collapse, We’ve Run Out of Time

Today John Embry told King World News, when referring to what is needed to bail out Europe, “All I know is that these numbers are staggering ... We are on the edge of collapse. We’ve run out of time.” Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, also told KWN that if the euro does split apart, it “will be extraordinarily chaotic.” Here is what Embry had to say about the crisis: “We’ve got to focus on what’s coming up in the short-run with regards to the European situation. It’s going to be an extremely interesting summit they are hosting this Thursday and Friday. The problems are piling up at such an enormous rate they can’t be ignored anymore.”

John Embry continues:

“There was this amazing back and forth today, where Merkel said, ‘There would not be euro bonds as as long as she was alive.’ Then, not longer after, Monti, the Prime Minister of Italy, came out and said that if there weren’t euro bonds, he was going to resign.

So this is turning into a comedy, even though it’s a tragedy....

“The only way this can be dealt with, in the short-run, is by enormous monetary creation. If Merkel and the Germans want to block that because they don’t want to give the ECB that power, the euro is going to split apart and that will be extraordinarily chaotic.

If the euro doesn’t split apart and they do create the money, it will ultimately be very inflationary. So the Germans are caught between a rock and a hard place. You’ve got to remember that the Germans have seen their currency destroyed twice in the last century. The know full well that if you go too far down this path, you are headed towards hyperinflation. They have been there.

I think the money will be created. I was very intrigued by Don Coxe’s fantastic interview with you earlier today. He outlined the degree to which the European banking system is impaired. He used the number $2 trillion. To me, once you get into those numbers, it’s open-ended.

All I know is that these numbers are staggering. It wasn’t even that long ago that one trillion was a number that we couldn’t even fathom. Now they throw it around as though we’ll just print it up tomorrow.

For what it’s worth, if the euro were to break-up and the Germans were to introduce their own currency, that currency would go to the moon relative to most of the others. This would make them uncompetitive in many ways. The Germans have a lot on the line here, so I think they print.

In the very short-run, if they create enormous amounts of money, it could buoy markets a bit, but it doesn’t solve anything. The fact is the system needs unlimited liquidity just to keep floating all of the boats.”

Embry also warned: “We are on the edge of collapse, it’s imminent. We’ve run out of time. If they don’t take action, continue to play this brinksmanship, and this thing gets away on the downside, when you get a hard deflation going, it’s really difficult to reverse.

I don‘t think you can say anything with total assurance, for the simple reason that we have never, ever been remotely in a condition like this in all of world history. So the only things that I am comfortable in at this moment are physical gold and silver and gold and silver shares.”

The FED is talking about more quantitative easing

By Bob Chapman

Well, we had an $868 billion stimulus package. The Federal Reserve then created enough money and credit to bring that package assistance up to somewhere between $2.3 and $2.5 trillion. For that, we had approximately 16 months of attempted recovery. During that period of time, five quarters averaged growth between 3% and 3.25%. I feel that was a very, very high price to pay for a relatively sideways movement in the economy. Now we're back to square one. The recovery is not continuing. The Federal Reserve is talking about more quantitative easing. They're talking about buying back the toxic securities they bought from banks at a price they won't disclose. That move essentially cleared up the banks' books but at the same time encumbered the Fed's books, which they're now going to unburden by selling the bonds back to the same people they bought them from. Now, we don't know what the loss factor is because they won't tell us, so we have to ballpark it. Out of this money that's coming and going they have to come up with a figure somewhere in the vicinity of $1.2 trillion. That's what they're going to use for this quantitative easing.