MEP Bad News for Banking, Good News for Gold

It seems that Nigel Farage is intent of lifting the lid on political 'spin' and seeks to just speak his mind when it comes to both domestic politics, which ultimately resulted in his assent to becoming a Member of the European Parliament; and now in post, seems to be going against the EU narrative and claiming that the Banking crisis is far from over........  I happen to agree with this!.

In an interview with King World News, MEP Nigel Farage has said,

"Well, everybody has been terribly complacent about this.  The general view has been that the banking problem is out of the way, the eurozone debt crisis is finished, the existential crisis is over, and it’s all going to be fine.  But we saw some really quite bad shudders down in Portugal last week.  There were (also) some very serious concerns about one or two of the Austrian banks.

And what no one has noticed is (what’s happening in) these Mediterranean countries.  We’ve seen the bailouts of course.  We’ve seen the Greeks bailed out more than once.  We’ve seen the Cypriots bailed out, Portugal, Spain.  All of this stuff has been going on and (yet) we’ve been told the problems are over.  And the reality is the banks are in as big a mess as they ever were.  Actually, the national debt ratios of these countries that have been bailed out over the last couple of years has slowly but surely been increasing in every single (member) state.  So we’ve seen a sudden sort of realization that this problem hasn’t gone away.”

Gold has had a good year so far, quietly rising in the background, what are your thoughts on Gold?

“Yes.  It sort of feels like gold has bottomed out, doesn’t it?  It’s kind of found it’s base.  And whilst relatively short term investors may be disappointed with that base, if you take a longer, historical view of gold and look at the gold charts, you see that what gold has done is to form a significantly higher base than anything we have ever seen before in history.

So it looks to me like gold has bottomed out.  And if I’m even half right about the situation with the banking crisis, about some of the real worries in the economic system, especially within the eurozone, then we will see times again, as we saw going back 3 years ago, when gold has a serious move on the upside.

What happened in 2008 was a terrible jolt and a terrible shock to the global economy, and to the stock markets.  But the reality is, despite deleveraging and many things that have happened, this (crisis) has not gone away.  This banking crisis will come back and bite us and bite us very hard.”

...food for thought to all of the nay-sayers out there, Silver bugs dont worry, I have some explosive Silver news that will be published on Mokarimakka tomorrow.

..the best way to predict the future is to invent it!

Alan Kay