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Fleckenstein: Fed policy will end in disaster

"This is going to end in a very big disaster."

That's the warning coming from money manager, noted contrarian, and Federal Reserve critic Bill Fleckenstein of Fleckenstein Capital. Fleckenstein appeared on Talking Numbers to discuss what's ahead for the US central bank as Fed chief Ben Bernanke testifies today and tomorrow before Congress.

Fleckenstein has a good track record for being right. Besides calling the Tech Bubble in 2000, he also sounded the alarm on the subprime lending crisis in 2007. More recently,Fleckenstein appeared on Talking Numbers one week before the Japanese markets peaked in May to caution of its impending fall. The Japanese market subsequently fell 20%.

"Fed money-printing … boosts the stock market and helps the bond market," says Fleckenstein. "I believe the bond market might be in early stages of revolting against this."

"These policies of the Federal Reserve are totally out of control," says Fleckenstein. Though Bernanke is considered the leading expert on and critic of monetary policy during the Great Depression, Fleckenstein argues that Bernanke is actually repeating those very policies.

And what's coming next will not be good, says Fleckenstein. To hear his most shocking pronouncements, watch the video above.

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