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Fleckenstein - Jim Grant is Right, “A Bonfire of the Currencies”

With gold climbing relentlessly higher, today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get his take on the situation. When asked about the relentless rise in gold Fleckenstein responded, “Obviously as Jim Grant likes to say, ‘We are having a bonfire of the currencies’. To think that the Yen is strong given the hand they have to play or that the euro is 1.44, given how bad the euro is it’s 1.44 to the dollar, what does that say about the dollar? None of these currencies are any good.

All of the Western world save for maybe Australia and Canada is swimming in debt. So I don’t know how anyone can feel good about what is occurring. It seems almost impossible to think that this paper money regime that we’ve been on for the last forty years isn’t in the very end game.”

Fleckenstein continues:

“So I think there are a whole lot of reasons why people are buying gold or adding to gold positions. Anyone who is adding to gold positions already understands the problems. People that are starting new gold positions are just now coming to understand the problems I would guess.”

When asked about Europe Fleckenstein stated, “Well, in addition to all of the problems that I think everyone is quite cognizant of, at the moment the European banking system is in trouble because of the fact that they do not have a printing press. It is somewhat ironic that because Trichet has tried to do the right thing from a currency standpoint, the whole euro currency concept may blowup....

Continue reading the Bill Fleckenstein interview below...

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“The governments there are very indebted, some worse than others. The banks all own those debts and they own the debts of the banks in other countries and the banks are wildly leveraged. Meanwhile, nobody can produce a real ‘bailout’, thus it is a potential real powder keg. They are slow to act over there as they don’t seem to understand their own crisis.

I do appreciate the fact that Trichet tried to make the paper currency a real currency, but the problem was nobody abided by the initial rules and then they bailed out Greece....The only way to have precluded that was to have made people adhere to the growth and stability pact that they started out with and make sure they weren’t cooking the books, which obviously Greece was.

One way or another I think that the euro is going to not have Germany in it at some point in the not too distant future. Germany cannot save all of Europe and I don’t think the rest of them can cut back enough.”

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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