Bill Fleckenstein Tells Fox Business The U.S. Has Turned The Dollar "Into Confetti"

Hedge fund manager Bill Fleckenstein spoke with FOX Business Network's (

) Liz Claman and David Asman about the economic situation in the United States in relation to the global economy. Fleckenstein said the U.S. has turned the dollar “into confetti” and predicted the reign of “a new currency regime down the road.” He went on express confidence in Mongolia's economy saying the country is “about to undergo the boom of a lifetime” as a result of the natural resources it possesses and its proximity to China. Excerpts from the report are below, courtesy of Fox Business Network.

“This has been one big continuum. We went from a gold standard, to a quasi gold standard, and we have has all paper money since 71. Slowly but surely we have turned it into confetti and that process has to run its course. The policies Bernanke is pursuing while they seem palliative in the short run are hastening the end of the all paper dollar as the king currency and we will head towards a new currency regime down the road.”

“I was in Mongolia and suffice it to say it is about to undergo the boom of a lifetime. It has the minerals China needs and the amount of money going in there to build these mines much less the money that is going to be coming back out is the size of their GDP which is about five or six trillion right now. They have a soundly managed currency, they believe in hard work, the median age is 26 years old. The only problem for investors is there aren't many vehicles to invest. But it is going to be a spectacular opportunity because it is going to be a boom regardless of what the rest of the world does.”

“We have seen so much volatility, anything is possible on any given day and a big move like 3% is quite often just noise. I don't believe we ever really got out of this recession. We haven't approached a real recovery status; just because some government agency said we came out of the recession doesn't mean we did. Our financial system is better than it was in 2008 but from a jobs standpoint and from a getting our government finances in order, we have a lot of work to do here.”

“They are trying to take a page out of our playbook from 2008. The ECB is not quite capable of buying government debt yet so they are trying to cobble together something like what we did and its more difficult because it is Europe. My guess is the worse things get, the harder they will try to come up with something where they can kick the can down the road.”