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Fleckenstein - One or Two Year End Game for Money Printing

With stocks tanking and gold and silver consolidate recent gains, today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital to get his take on where we are headed from here. When asked about the action in the metals, Fleckenstein responded, “First of all gold was down in dollar terms but it was up in terms of many other foreign currencies. Sometimes people will say how can gold be down given what’s going on, a lot of chaos. So if somebody has to liquidate their account because it’s related to MF Global or some other problem related to losses in another market, when there is this much chaos on any one day, what a market does on any one day doesn’t tell you that much.”

Bill Fleckenstein continues:

“But in fact gold really wasn’t down that much and as we speak it’s flat on the day. Tomorrow the Fed is probably going to bring QE3 and meanwhile Europe is in a state of disarray. All of that will sort itself out bullishly for gold even if were to decline for the next couple of days.

The Japanese, the British, the Swiss, the Americans are all printing money. In Europe, this particular phase of their crisis has all been about the fact that Trichet didn’t want Greece to default, but didn’t want to print money.

Now the ECB is actually printing money in a back door fashion because they have these repo’s. They are also buying debt and they are not sterilizing it, so they kind of are (printing money). But we have evolved as a society over the last twenty or thirty years since the world went off the gold dollar exchange standard, whereby every iteration we rely on the printing press more and more....

Continue reading the Bill Fleckenstein interview below...

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“Now we are just on a pure printing press standard. This will end, this is the end game for that. It could take a year or two. Maybe if the euro has to implode and they all have to take printing presses back and use them for the people to revolt because in the end the printing press is no panacea, otherwise Zimbabwe wouldn’t have collapsed.

Greece has had many defaults over the last couple of centuries and they had a printing press. We are continuing down the path of always using the printing press, but its day will end too. In the interim, gold is the way to protect yourself from that outcome.”

When asked if gold and silver are a good buy at these levels, Fleckenstein stated, “Yeah, I mean what’s the alternative? None of this paper is worth anything and they are just going to debase it some more. I mean every day that you walk into a long position you are basically re-buying your position at the last price on the board, even though there is not a transaction. If somebody came to me and said, ‘Look, I don’t hold any,‘ I would say well you’ve got to step up and buy some.”

This interview with Fleckenstein was very interesting in terms of getting his take on how the bull markets in gold and silver are progressing. He also discussed stock markets and much more. The KWN interview with Bill Fleckenstein is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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