The above title refers to comments from Bill Fleckenstein, an investor and market pundit who has been bullish on gold and a strong critic of the Federal Reserve for many years.
In his latest article for MSN Money, Fleckenstein wrote that “Bernanke doesn’t seem to understand that he is 100% trapped. Either he needs to spring more quantitative easing (i.e., QE3) soon, or stocks will crash more and he will have to do it later anyway. For a guy committed to printing our way to prosperity, he sure doesn’t seem to understand the monster that he and his predecessor, Alan Greenspan, have created.”
Fleckenstein went on to talk about the impact of the European sovereign debt crisis on the markets and economy, noting that “No matter what the Fed does, though, it can’t fix the problems inside the European banking system, nor can it cure the potential insolvency of European sovereign debt.”
“The scary part about Europe is that, at every step along the way, the European Central Bank, led by Jean-Claude Trichet, and the heads of the European Union have been a day late and a euro short trying to get out in front of the issues they face,” he continued. ”That is partly due to the inherent flaw of the euro system, namely, the difficulty of getting disparate countries to agree to the same policies…All this leaves us in a mode in which anything in any market can trade anywhere.”
Lastly, he wrote that “The potential bright side to all of the carnage is that it will force us to start dealing with our problems and hopefully scare us enough that we find the courage to solve them. However, in the short run (i.e., the next year or two), turmoil and pain will likely continue, as there are no short-term solutions to the litany of economic and financial problems that we — and the rest of the world — face.”
Although Fleckenstein did not discuss the implications for gold in this latest article, the uncertain and worrisome environment that he described is quite supportive for the yellow metal.
West Kirkland-Newmont Joint Venture Reports Results
West Kirkland Mining (WKM.TSXV) reported assay results from the Company's first core drilling on its TUG property, which is currently under option from Newmont Mining (NEM). The first hole of the drill program returned 15.48 meters (50.8 feet) grading 3.08 grams per tonne gold (0.09 oz/t) and 94.75 grams/tonne silver (2.77 oz/t).
Approximately 400 shallow RC type holes have been completed at the TUG property and a near surface historic resource has been calculated. West Kirkland current drill program is designed to provide confirmation of the previous gold values in order to produce an updated compliant resource calculation as well as to explore for the roots and controls on the higher grades with the recent Long Canyon model in mind. Additional targets have been identified that have the potential to expand the deposit along strike and down dip.
Full West Kirkland Mining Press Release.
*First hole returned 15.48 meters (50.8 ft) grading 3.08 grams per tonne gold (0.09 oz/t) and 94.75 grams/tonne silver (2.77 oz/t).
*2011 drill program will include a minimum of five holes for 1,500 meters (5,000 feet) in the TUG deposit - Long Canyon Trend.
*Drilling of up to 1,500 meters (5,000 feet) at the Bullion Mountain property, North of the Pipeline Mine Nevada (10 g/t surface assays-shallow and deep high grade target).