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.”

Expect Shortages Of Gold As Soon As Next Month

Today John Embry stunned King World News when he warned, “We are moving toward a fundamental shortage of gold, and I believe it may start as soon as next month.” Embry also cautioned, “The problem now is that the global economy is contracting at a time when the debt levels are catastrophically high.”

Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, also discussed Europe, but first, here is what Embry had to say about the drought and inflation: “I am very concerned about this drought that is happening, particularly in the United States. You look at a weather map in the Midwestern United States, the temperatures are just staggeringly hot and there’s no moisture.”

“Already the corn crop has been reduced dramatically. Aside from the fact that it will have a big impact down the road in the economy, because food prices will move up sharply, on a basic level this is the difference between starvation and survival for people in certain parts of the world.

There are already food shortages in some of those areas, and now we are going to see the prices rising on top of that....

“This is a potential catastrophe and I’m very worried about it.”

Embry had this warning regarding Europe: “If you look at the news coming out of Europe, it’s almost like can it get much worse? And it gets worse. The Spanish stock market has been down 12% in a few days. That’s the equivalent of 1,500 points in the Dow.

The Spanish market is now at levels last seen in 2003. Their interest rates just surged to news highs over 7.50% on the 10-Year. I also see six Spanish regions are asking for bailouts, and where’s the money going to come from? The Spanish government hasn’t got any money. The European nations are trying to recapitalize Spain, but they don’t really have any money. So in the end it’s going to have to be created out of thin air.

I really appreciated the fact that an insider came out from the IMF, that resigned, and wrote this scathing public letter about all of the failures of the IMF. It’s all true. I mean to me the IMF has been a massive failure and they are part of this troika that’s attempting to deal with the Greek situation, which to me looks hopeless.

I see the Greek Prime Minister just said they are in a massive depression. The idea that they can take much more austerity to meet the terms which allows them to access more funds is a non-starter. In the meantime we are now being told the world is prepared for a Greek departure. I don’t believe that’s true. I think it would be incredibly traumatic if that were to happen.

The problem now is that the global economy is contracting at a time when the debt levels are catastrophically high. The only thing propping up the system, at this point, is the fact that there is still this move into the bonds of the perceived ‘safe’ countries.

There have been a number of times in history where investors have gone nuts and participated in ridiculous manias like the South Sea Bubble, the Dutch Tulip Mania, and Japanese real estate in the 80s. I think when the bond bubble is looked at in the fullness of time, sovereign debt trading at the levels it is right now as its proliferating everywhere, will be seen as ones of those bubbles.”

Embry also added: “Right now you are very hard-pressed to put your finger on any place in the world where the economy is improving. China is really weakening. They are essentially decelerating. The only way they can ramp things up in China is to jam more paper loans into the system, but I think the problem is that will have a very inflationary impact.

There’s no easy out on this thing and what was seen as the engine of the world is now sputtering.”

When asked about gold, Embry responded, “We are moving toward a fundamental shortage of gold, and I believe it may start as soon as next month. I think the bottom is being put in right now. You see once again with the stock market trading lower, they just turn the algorithms on and grind the price down.

But this action is all just building a massive base in gold. I think the big issue going forward is this growing shortage of available physical gold. I strongly believe one of the reasons for the shortage is a lot of it is headed East. The last four or five months of the year gold should challenge and easily take out its all-time high.

For what it’s worth, there is an enormous amount of interference in the gold and silver share market. I think that will end as soon as gold and silver break their highs. When that happens, I think it’s going to unleash a rally in these stocks that is absolutely going to stun people. People will be shocked that don’t understand the full extent of the manipulation and how cheap these stocks have become as a result of it.”

$15 Trillion To Be Added To Money Supply & Gold To Ascend

KWN has been getting bombarded from readers around the world on the Michael Pento piece titled, “This Major Fed Move Is About To Cause Gold To Skyrocket.”   Today we followed up with Michael Pento because there was such tremendous interest in knowing more about this major move he expects from the Fed.  Today Pento told King World News that this move he is predicting could add a staggering $15 trillion to the money supply. 

Pento, of Pento Portfolio Strategies, also said that if this move happens, “you will see the gold market fly far past its nominal record high in extremely short order.”  Here is what Pento had to say:  “So let me put it together for your listeners.  We have $1.42 trillion of excess reserves.  We are now going to be told that there will be no capital reserve requirements on owning sovereign debt.  You will have commercial banks flooding the market with the purchase of sovereign debt.  Not just US debt, Portuguese debt, Spanish debt, Greek debt, all of that debt will have zero capital requirements.”

“Let me be clear on this, I’m not saying it could increase M2 money supply to $15 trillion, this could increase it by $15 trillion.  So we’re talking perhaps about $24 trillion.  It has the potential to increase to rapidly increase the global money supply, and it would be a tremendous boost to commodities, oil and precious metals. 

However, I would add that it will only vastly exacerbate the stagflationary environment that we see gripping the entire developed world....

“It’s much worse than a QE3 because QE1 and QE2, because the vast majority of that money created is sitting with the central bank, it’s laying fallow at the central bank.  But if you have a mechanism like I just described, no longer having sovereign debt have any capital reserve requirements, the notion to stop paying interest on these excess reserves, you will have all of that money that was laying fallow, flood into the economy at once.

So there is no easy answer.  Bernanke doesn’t know what he’s doing.  He spent too much time studying the Great Depression.  He’s going to get a chance to study one firsthand in my opinion. 

What he needs to do is let the free market work, and I can tell you that unleashing $1.5 trillion into the American economy, and having that money roll-over and multiply (to $15 trillion), through the money-multiplier-effect, is not a very good idea.”

Pento also added: “I am a big advocate of hard money policies around the world, and I love gold.  However, I am not a broken clock.  If gold was going to go into a bear market, I’d be the first one to tell you.  I have been on the record, on King World News, telling people when I thought gold was overbought.

I’ve been on record telling people that we’re in this cyclical period of truncated deflation, but if they do the two things I just described in this interview, which is to implement the Basel III Accord, and cease paying interest on excess reserves, you will see the gold market fly far past its nominal record high in extremely short order.”

Turk - Capital Controls, Panic, The Great Depression & Gold

With tremendous volatility in global markets, today King World News interviewed James Turk out of Europe. Turk told KWN that we are headed into an extraordinarily dangerous time for both the markets and the financial system, that will end in a massive panic. Here is what Turk had to say about what is taking place: “Today was a very important day, Eric, because gold was strong while the stock markets were weak. This is a trend I expect to continue, and one that will baffle many financial analysts, going forward, that don’t understand this type of cycle.”

James Turk continues:

“I was hoping to see more strength in the precious metals at the end of last week, Eric, given the pummeling gold and silver were given. But I guess that was too much to ask for with July option expiry this week.

Having driven the price of gold and silver down to this low level, I assume the paper-shorts will try to keep prices as low as possible, in order to maximize their profit by having calls they sold expire out of the money. We've seen this happen many times over the years....

“But there has not been any change in my thinking. Gold and silver are simply testing the May lows. So far the test has been successful. More importantly, we have to keep foremost in our minds that gold and silver remain in a bull market. I keep being reminded of this fact every time I look at the news, which keeps getting worse over here in Europe.

I think Nigel Farage got it exactly right in his interview with you on Friday. He said that the leaders over here need to resort to financial ‘repression’ to keep the euro project from falling apart. Of course that is not a solution, but simply a stop-gap by panicky leaders, who don't know what to do or who listen to bad advice.

Anyway, after Nigel's interview, the Spanish government announced the imposition of various capital controls, limiting the use of cash by companies and individuals. Expect more capital controls, soon, throughout the eurozone. That will only add to the panic, which is already bubbling just below the surface.

As we know, Eric, government actions like these do nothing to solve the problem. Financial repression is never a solution. Capital controls only buy more time, but you can't do that forever. So money continues to leave the European banks. The bank runs are not disappearing. In fact, they jumped across the Atlantic to South America, where Argentine banks are rapidly losing dollar-denominated deposits.

Bank runs were a focal point of the Great Depression, but they were just part of a bigger 3-step process that has parallels to today. After the 1929 stock market crash, people moved money out of investments and put it into banks. They wanted the liquidity, and, at first, did not fear for the safety of their money on deposit. We went though this step with the Lehman collapse.

As the economy weakened in the 1930s, people started to convert their deposits into cash currency. This was the second part of the crisis, when fear for the safety of one's money became more important than liquidity. We are now at stage two in Europe, and soon will be reaching this stage in the US. The downgrade of the major US banks, last week, is bringing heightened awareness of the fragility of the US banking system, meaning they are extremely very vulnerable to an economic downturn.

Europe's economy is clearly on a downward path, and economic activity in the US is slowing too. So the third step of the process might be closer than we think. That's when, in the 1930's, people moved out of cash, and into gold.

They did so back then because even though the US dollar was still formally tied to gold, people began to understand that there was more paper outstanding than there was gold in the US reserve. They believed that the US government could not possibly keep its promise to redeem $20.67 for one ounce of gold, so they moved out of paper-currency.

Importantly, they were right. President Roosevelt eventually devalued the dollar by 69.4%, dropping the gold content of one US dollar from 23.23 grains to 13.71 grains of fine gold. He adjusted the price of gold from $20.67 an ounce to $35 an ounce.

In the 1930's, if people we lucky enough to get their money out of any of the hundreds of banks that failed, they didn't want to take any more chances, Eric. They soon realized that the paper currency in their hand wasn't much safer than when they had their money on deposit in a bank. The panic to obtain gold or silver marked the bottom of the Great Depression. The solution was a higher gold price, and that is the same solution needed today.

President Roosevelt knew the solution in the 1930s, and lowered the gold content of the dollar, thereby raising the gold price. Central planners don't like that solution because it takes away the power they now have with fiat currencies, backed by nothing but their promises, but a higher gold price is coming nonetheless. It is the only solution.”

Buy Gold & Silver Recommends Gerald Celente

Gerald Celente cannot give financial advices but he is telling you what he is doing personally , he is putting his money into the only safe heaven out there and that is Gold and Silver .He is also recommending to boycott these coming elections instead of voting for the lesser of two evils as usual . All politicians are one and the same. Vote for any, you get the same. Jamie Diamond has his cufflinks. We OWN you all. Gerald is so wise an in tune with reality. He is the hero of reason. His knowledge will set us free. Free of the fear the elites need to feed off. Where is the mafia? Um, lizards killed him. Save the truth. Save Julian of Wikileaks. Save the internet. Save yourself from the fear Washington offers Julian. TORTURE for telling truths? Who ruses us? None to choose from .Gerald gave you a high complement. With his knowing, he doesn't honor many. We should play by their rules. When they manipulate metal to lows, buy. Buy and don't sell out. They may crash metals, yet when their paper eft etc can't play off to the owners, It isn't there. All the 1% will fall. It is global. Fearlessness that will bring the "elites to their knees. To have and hold...the poor mans salvation, SILVER.. Buy low and HOLD on.

Marc Faber: 100% Chance of Global Recession

By: Lee Brodie

The stock market appears to be at a critical inflection point. That’s the takeaway from widely followed economist Marc Faber, author of the Boom, Gloom & Doom newsletter.

Faber’s bearish market calls have been followed closely since 1987 when he warned his clients to cash out before Black Monday.

And in a live interview on CNBC’s Fast Money Halftime Report, Faber again warned that economies of the world may be on the brink of a serious slowdown.

Faber indicated that while investors remain focused on Greece and Europe – other issues, bigger issues are looming. And they’re more threatening.

“As an observer of markets – whenever everyone focuses on one thing – like Greece and Europe – maybe they miss issues that are far more important – such as a meaningful slowdown in India and China.”

The latest reports from Beijing would support Faber's assertion. The HSBC Flash Purchasing Managers Index, slipped to 48.7 in May from 49.3 in April. That marks the seventh straight month that the index has been below 50, a level which indicates economic activity is contracting.

Faber also cited weakness in the high-end as another key catalyst that’s very negative.

“There are more and more stocks that are breaking down – economic sensitive stocks and companies that cater to the high-end,” he said. "That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.”

Earlier in the week Tiffanylowered forecasts citing slower sales. At that time, Fast Money trader Dan Nathan warned that results such as these were foreboding and suggested the high-end was starting to crack.

When taken in concert, Faber says all the economies of the world could take a hit from these negative developments.

“I think we could have a global recession either in Q4 or early 2013." When asked what were the odds, Faber replied, "100%."

However, in the near term Faber also sees potential for a market rally.

Faber said the bullish catalyst would be Greece exiting the EU.

“I think the market would be relieved if finally Greece exited the euro. There would be some clarity. Although it wouldn’t be good for banks and insurance (stocks) in general I think markets are oversold and with an exit – markets would rally.”

It’s worth noting that Faber is talking hypothetically; he does not think Greece exits the EU in the near future.

“What I think will happen is that Germany will show more flexibility and issue more euro bonds.”

Faber pointed to the recent decline in the euro as evidence that the currency markets share his view. “More bonds will challenge the quality of the euro. That’s why the euro has been very weak, lately."

For investors looking to navigate what could be a serious economic storm, Faber said the best thing to do is keep the portfolio in US dollars and own gold, “knowing that sentiment is negative and in the near-term it could trade down to the Dec 29 low of $1522.”