Bill Fleckenstein: "There's no chance that this ends well".

I'll keep this one short (no pun intended).  Bill Fleckenstein was famously short the markets right into the bottom of the crash in 2009 when he not only stopped shorting the markets, he actually closed his short fund down and returned capital to his investors.  Then he went long.  That's pretty good market timing no matter how you cut it.  And you gotta love the guy's swagger of actually closing down his short fund completely back then even though it was making him rich.  That is what I call conviction.

Back in late 2013 he began the process of re-opening the short fund.  These things can take some time apparently.  As of March 2014 he went on record saying "get ready to begin shorting again, but not quite yet".  Back then he saw trouble brewing later in the year.  The main 3 tenets of his perspective back then were:

• A slowdown in China
• Further reductions in Fed stimulus
• An eventual crack up in the bond market (fed loses control of the bond market/skyrocketing interest rates).
• He wrote,"I think the world’s bond markets are a complete joke…but QE has benefited them and I think we’re in the early stages of the US bond market not necessarily cooperating with the Fed...eventually bond markets will crack... and when they do, that’ll be the end of the Fed and central banks’ ability to print their way to what they believe is prosperity. And that’s the endgame for this big experiment—that’s in our future, but we’re not quite there yet. ...  if (cap'n: "since") the Fed is not effective at generating jobs and GDP growth, and it can only print money and can’t stop printing money, maybe we have a problem...You cannot have this kind of crazy, maniacal policy where the Fed blows up everything, then comes back and does the same thing as before but only in bigger size and people think that as progress or success—it’s just madness!"

Please read those words in green and yellow carefully over and over to yourself and then think about the implications. Fleck is not saying "rough patch", "expect turbulence" or even a "hard landing".  He is saying it will mean the end of the Federal Reserve and their damned fiat currency.  He is saying it will collapse of its own corrupt weight and that the "experiment " will fail.  Of course, it was not an experiment at all.  It was a con job from day 1.  It was guaranteed to fail from day 1.  How is that some kind of "experiment"?  I know that Fleck is smarter than that but I guess that political correctness is still important to him.  Or maybe he really means "an experiment to see how gullible people are and how long they will let some corrupt elitists bend them over a log before revolting".


Now, the most patient Mr. F. is out with another message for those with ears to hear: this will end badly.   I do not think the timing of his statements is in any way coincidental.  Remember, back in March he said "wait to short, not ready yet".  I think he has serious models and that they are starting to cry havoc.  His timing has been awesome so far and thus he is someone I pay attention to.  Nobody can say how long until the scam actually goes bust but it's a fair bet, fellow gamblers, that we are in the end days of the global debt Ponzi.  This time it will not be a correction.  It will be a full on collapse.