Bill Fleckenstein had some choice words for the Federal Reserve in an interview with King World News today, saying that “The Fed really is the engine or the driving force behind much of what’s gone wrong in the country in the last 20 years.”
He thinks that stocks are being propped up by the Fed, but he eventually thinks stocks will sell off:
We can’t know when, but at some point the markets will be bigger than the Fed once again. We saw what happened in 2008 and we saw it in 2001. When the markets finally revolt, then they will be bigger than the Fed and all of the central banks.
My belief is we will have taken this money printing as far as it will go, and the pendulum will swing back in the other direction, and the world will worry about inflation rather than deflation. I think that’s a big inflection point that’s lurking out there.
In the end, the markets are bigger than the central banks, even though on most days, weeks, months, and years, it doesn’t seem that way because the markets do what the central banks want. But it isn’t always the case, especially when they are pursuing bad policies. Eventually the markets do the right thing.
In his piece, Fleckenstein talks more about how we got here and what he sees in the gold market.
Read it at KingWorldNews.com.