The outspoken practitioner of Austrian economic philosophy tells The FT,<\/a> “Markets don’t have a purpose any more – they just reflect whatever central planners want them to,” confirming his fund-management partner, Nassim Taleb’s perspective that “being protected from fragility in the financial system is a necessity rather than an option.”<\/p>\n “This is the greatest monetary experiment in history. Why wouldn\u2019t it lead to the biggest collapse? My strategy doesn\u2019t require that I\u2019m right about the likelihood of that scenario. Logic dictates to me that it\u2019s inevitable.”<\/strong><\/em><\/p><\/blockquote>\n While some money managers are critical of a strategy that \u201csells fear,\u201d<\/strong> The FT reports<\/a> there are others who share Mr Spitznagel\u2019s views that another reckoning is imminent.<\/p>\n Among those who share his worldview is former US presidential candidate, Senator Rand Paul, and his father Ron Paul.<\/p>\n <\/p>\n The elder Paul wrote the introduction to Mr Spitznagel\u2019s 2013 book, The Dao of Capital. \u201cAs one of the leading voices in the country on economic policy, Mark has been a key friend and ally, and I\u2019m thankful for his always-ready advice,\u201d Senator Paul told the FT. But most investors will be praying he is wrong.<\/strong><\/p><\/blockquote>\n Universa started in January 2007 after its success during the financial crisis, when it reportedly gained about 100 per cent. The firm now protects about $6bn of investor money<\/strong>, backed by about $200m-$300m of capital (the firm declined to say exactly how much because of regulatory issues). Fees are paid on the nominal amount insured against calamity, rather than the capital invested.<\/p>\n One of Universa\u2019s claims to fame is its relationship with Nassim Taleb. This is Mr Taleb and Mr Spitznagel\u2019s second endeavour together.<\/p>\n <\/p>\n \u201cMark and I have been studying extreme events and protecting portfolios from them together since the 90s,\u201d Mr Taleb told the FT.<\/p>\n <\/p>\n \u201cPeople are finally discovering that being protected from fragility in the financial system is a necessity rather than an option.\u201d<\/strong><\/p><\/blockquote>\n The libertarian hedge fund manager sees a close similarity between what he is trying to achieve at Idyll Farms \u2014 which he built in 2010 with winnings from the financial crisis \u2014 and his investment strategy and deeply-held Austrian economic philosophy.<\/strong><\/p>\n \u201cIt\u2019s all about sustainable use of resources. Modern farming has completely broken down the traditional system of agriculture. It\u2019s become a machine. We\u2019ve manipulated away its natural productivity and robustness, just like what we\u2019ve done with markets<\/strong>,\u201d he says.<\/p>\n <\/p>\n \u201cMarkets don\u2019t have a purpose any more \u2014 they just reflect whatever central planners want them to.\u201d<\/strong><\/p><\/blockquote>\n![](\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/05\/15\/20160516_spitz.jpg\")
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