End game, End Times??

Bill Fleckenstein is a monetary icon with many even calling him a legend.  For years he ran a bear fund and made outsized profits (while other fools laughed at him) but very near the bottom of the 2009 crash he suddenly closed the fund and returned all profits to his fellow elated gamblers (ummm, errr, "investors").  Last, best laugh definitely went to Fleckenstein.  Not only does Bill have a track record of "getting it", he also seems to have a great sense of timing.  This makes him a very rare person indeed.

Fleckenstein is now on record over at King World News today talking about the current global and US economy as "a fantasy" and that tapering talk is a joke.  He thinks the fed will try it but then the market will react badly (my take: like a drug addict reacts to removal of drugs) and so the government will not be able to remove stimulus, ever.  To expand on Fleckenstein's thoughts, I personally believe that when people finally come to believe that stimulus cannot mathematically be ended, the con will be exposed for what it is and there will be a massive reset in what people believe to be of value.  Paper assets of every kind, including stocks and bonds and insurance annuities and pension plans and 401ks will all fare badly in this IMO.

Fleckenstein says, "But right now, people continue to believe that the same idiots that created all of these problems, namely the central banks, are going to somehow get us out of it with the exact same policies that got us into it, only at a much higher (aggressive) level of pursuing those policies.
We’ve had so much artificial stimulus, and we’ve misallocated so much capital.  And over the couple of decades we’ve been doing this we’ve kind of broken the economy and the financial system.  So, I don’t think you can worry about what’s on the other side.  We haven’t even gotten people to understand the charade that we have.

What the masses have done over and over again is to believe one more time that it’s all going to be OK ... We are in a unique moment in history.  The whole world is printing confetti, and (yet) people seem to think that’s going to work out fine....The longer you keep pursuing insane policies, the more you pile (them) on top of each other, the worse it gets ... So, when the Fed can’t print money and we have to deal with this, it’s going to be brutal.”

Fleckenstein goes on to say, "Americans see no need to own it (gold).  We’ve got massive debasement going on around the world.  All of your listeners (and readers) understand the bull case for the metals.

I think the bear market that had been going on for a couple of years ended in late June, and now it’s the early stages of a bull market (in gold).  When it is going to do something more sensational on the upside I can’t say.  We’ve rallied 20% off the bottom, and now gold is backing and filling.

What will be the catalyst for the next leg up?  Probably something that revolves around the FOMC Meeting.  Either they (the Fed) will taper slightly and the market will go down a little, or not if people realize that the tapering has (already) been discounted.  Or they won’t taper and people will finally realize how trapped they (central planners) are, and it (gold) will go wild (to the upside).

The fact of the matter is Americans, in the aggregate, don’t see any reason to own metal.  They believe in the lunatics at the Fed, and the rest of the Western world is that way (as well).  Obviously Asia doesn’t quite see it that way.  But it’s understandable why the average American doesn’t buy gold -- If they believe in a fantasy, why would they need it?  As the fantasy dies, then they will understand the need to own gold.” .

These are Bill Fleckenstein's words, not mine (even though they could have come right out of my blog and emails of the past few years).  This is serious business.  It's more important than Kim Kardashian's low cut top (and everything else the main stream media tries to distract you with).  It's more important than Obama's unjust wars of aggression (even though there is a tight link between the two).  Everything else can slide off your back like water from a duck.  But a corrupt, dying money supply cannot be shaken off because it is intertwined into all of our lives.  All you can do is shield yourself from the economic EMP that is coming, you cannot prevent it.  Nobody can prevent it any more than a drug addict can prevent withdrawal pains when the drugs are removed.

My advice?  Build yourself a Faraday cage out of gold and silver coins so that you have some protection when the economic EMP strikes.