Nigel Farage - This Is My Greatest Worry As We Head Into 2013

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kingworldnews.com

Today Nigel Farage spoke with King World News about his greatest worry as we head into 2013.  Farage, who is Britain’s very popular MEP, also gave his outlook for Europe in 2013, as well as his 2013 outlook for the globe, Here is what Farage had to say in this powerful and timely interview:  “What really has me worried, and this may go beyond 2013, but I think the one thing that is going to change is we’ve been through a period, since 2008, of interest rates being virtually zero.  During that period of time, governments have racked up vast, vast amounts of debt, and are continuing to run huge budget deficits.”

“I noticed at the end of last week that the 10-Year British bond suddenly traded out at 2%.  That to me is a marker.  It’s a marker that says, ‘Low interest rate environments don’t last forever.’  Actually, as you and I have discussed before, all of these programs, such as QE, in the end must be inflationary.

And I think we are going to be heading into a world of rising interest rates.  That is when our governments, who are continuing to run these deficits, are going to be in real, real trouble....

“I know it’s a small country compared to America, but take the UK, debt repayment on our national debt annually is already bigger than our defense budget.  But that’s with interest rates where they are at the moment.  What happens if rates become 2%, 3%, 4%, 5%?  The implications of that for government finances, and perhaps worst of all for taxpayers, are almost too horrible for anybody in politics at the moment to even think about.

I’m focusing my mind and my thoughts going ahead on my concerns about interest rates.  And I shall continue to make the argument that Western governments, if they are going to continue to have any ascendancy in terms of the world, are going to have to start getting these budget deficits under control, or that transfer of power from West to East will just accelerate.”

Farage also added:  “The Commission President, Mr. Barroso, said yesterday (paraphrased), ‘The euro crisis is all over.  Everything is fine and dandy.  So you can pack your bags, euro skeptics, and go home.  There is nothing to see here, move along now.’  Well, I can only conclude that he’s an idiot.  I mean, what other conclusion could one possibly draw?

Yes, it’s true that Mr. Draghi, the President of the ECB, a few ago months said, ‘We will do whatever it takes (to save the euro).’  And Mrs. Merkel in her election year has made it clear that the Germans will throw as much as they can at it to stop it cracking before those elections in the autumn of this year.

But nothing has changed.  The fundamentals haven’t changed.  Youth unemployment is still nearly 60% in those Mediterranean countries.  The economies are still contracting.  They are still being asked to fulfill measures that are frankly totally unsustainable in every way.  So, to say that it (the crisis) is over is just ridiculous.  The crisis is resting, but no more than that.”

Eric King:  “Nigel, I did want to ask you about Greece.  From Bloomberg:

“Greece is facing a heating oil crisis.  With an economy that has contracted for 5 years and an unemployment rate at a record 25%, residents in Northern Greece can’t heat their homes.  Kastoria hasn’t received funds from the central government to warm schools, and the mayor said he will close all 53 of them rather than let the children freeze.  At a Kastoria senior center several dozen gray haired men play cards.  Among them is Kostas Tsitskos, who said the suffering he sees now reminds him of the devastation caused by the German occupation in World War II.  “People were looking in the garbage for food then and they are now.  In World War II, people were selling furniture for food. If the situation continues now, we will be selling our furniture.”

Your thoughts on what’s happening in Greece?”

Farage:  “Do you know what I’m going to do?  I’m going to take that story about the heating oil, and the fact that schools may have to close, and the sheer level of desperation that many people not just in Athens, but outside of Athens that the people are going through, and next Wednesday when I meet Mr. Barroso face to face in the European Parliament, I’m going to ram it down his throat, and tell him, ‘You know, you may think the euro crisis is over, but just look at the misery you’re inflicting upon these people.  Do not be surprised when they rebel against you, because in the end, it will be all they’ve got left.’ 

I’ve been warning on this show for years that we were headed to a very bad place.  And do you know something?  We’re almost there.”