Fleckenstein – Cyprus A Massive Train Wreck & Huge Catalyst
March 26, 2013
Today Bill Fleckenstein told King World News that the Cyprus disaster is a massive train wreck and a huge catalyst for key markets. Below is what Fleckenstein, who is President of Fleckenstein Capital, had to say in the remarkable and exclusive interview.
Eric King: “Bill, when people lose confidence in the system and they see theft of bank deposits, how do you restore it (confidence)?”
Fleckenstein: “You can’t. Here’s what happens when you lose confidence. I’ll describe it to you. It happened in America not too long ago. Paul Volcker, no one believed him when he first came to the Fed. Then, in late October he raised (interest) rates by 200 basis points on a Saturday night because he was serious about fighting inflation and they were going to target the money supply.
They were going to break the back of inflation. He told you what he was going to do, which he certainly did. People thought he was so full of hot air that between October of 1979 and January of 1980, the gold price ran from about $475 to $875….