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Eric King Interviews Rick Santelli

Tyler Durden's picture


After what seems another day of tireless brainwashing, it is always preferable to close, listening to the one man who continues to call it like it is. In today's feature interview, which touches on virtually every currently relevant topic, Eric King speaks to Rick Santelli discussing such items as European insolvency/austerity, try to get to the bottom of the quandary where Japan (itself massively in debt) is getting the money to fund the European rescue, deconstruct the once anathema and now mainstream topic of a global ponzi system (less than two years ago one would be branded a fringe idiot for calling the global financial realm one big ponz... now it is rare to find someone who doesn't), the Japanese demographic crunch, the US municipal collapse and its implications on the USD (judging by the blowtorching of the DXY tonight, nothing good), the food riots and their causes (surging demand due to monetary policy as well as supply constraints), on the inflationary aftermath of the CNY peg (and what it means for Chinese FX reserve investment strategy), the continued reckless issuance of debt by the Treasury, gold, and much more.

Full interview link.


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Wed, 01/19/2011 - 00:08 | Link to Comment 66Sexy
66Sexy's picture

Santelli: The 'Establishment-appointed' father of the tea party; his infamous rant probably initiated by design to provide controlled opposition for the elite over the growing anti-bailout/tax movement; and eventually usher in the assimilation of the real libertarian based 'truth movement' into a passive, 'Glenn Beck' based, and arguably moronic, wing of the republican party..


Wed, 01/19/2011 - 00:09 | Link to Comment bigdumbnugly
bigdumbnugly's picture

wow.  that's a 4th generation conspiracy of a conspiracy based on the conspiracies surrounding the original conspiracy there, sexy.


Wed, 01/19/2011 - 00:22 | Link to Comment 66Sexy
66Sexy's picture

i like him and all, just theres no way that day happened randomly; it was clearly planned out.

Wed, 01/19/2011 - 02:30 | Link to Comment TruthInSunshine
TruthInSunshine's picture



Planned, you say?

That's crazy talk.

You are stating or implying that the private Federal Reserve Bank of the United States is creating a deflationary-inflationary cycle through booms and busts, in order to deprive American taxpayers of their monies!

They would never do such a thing! They have the interests of the U.S. and U.S. citizen firmly in mind at all times!

I am 100% confident of this!

And there's no historical precedent for such a pattern.



Wed, 01/19/2011 - 04:19 | Link to Comment Michael
Michael's picture

I made this Youtube video with pieces from part 3 of the BBC documentary, “The Power of Nightmares”. It explains the Precautionary Principal and where it came from, that has caused so much damage to our way of life and the world. This will tell you why the eco-fascists, Neo-Cons, and Neo-Libs use their apocalyptic predictions.

The Precautionary Principal-International Banking Cartel Brainwashing

Wed, 01/19/2011 - 08:40 | Link to Comment Hephasteus
Hephasteus's picture

Yep control freaks will control freak like freaky control freaks.

Wed, 01/19/2011 - 00:28 | Link to Comment Mad Max
Mad Max's picture

Yes, but it is actually quite plausible.  So much of the recent "grass roots" stuff is all so much astroturf.

The interesting part comes when the designated faux-outrage people become genuinely outraged and start to break from their handlers.  That happens, and that's when things get exciting, as in France 1789 exciting.

Wed, 01/19/2011 - 00:43 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

And there is Rick Santelli, once again, offering his daily dose of useless commentary that is only slightly more provocative than Steve Liesman and/or a dog fart in a sensory depravation tank. One would have to listen to Charlie "Drakkar" Gasparino or Dennis Kneale to find commentary as worthless and propaganda-driven as his. Yes, there he is, in the viper pits of the CME where America truly gets fucked. 

May I refer you to the following video from the summer of 2008 where he defends the rocketing price of oil as not being driven by his speculative friends, but rather by true supply/demand concerns - after all, why does the roll continue? From somewhere deep within his bowels he finds the audacity to make this claim while inventories were rising, consumption was declining and the world was just a few months from total economic implosion. If all your friends are speculators and traders, then reality is nothing but a bid. 

Shamelessly defending the greedy speculators who have driven the price of everything higher, he pathetically claims that the Roll (see GSCI) must meet reality on the last day of the month, and since the roll continues ever higher, then the market is presenting true price discovery. In other words, don't blame oil on my speculative friends.  

Pay particular attention to 2:21, when he - quite accurately, though he doesn't know it at the time - claims that if oil was part of a vast "evil conspiracy you would have a mammoth dive straight down." The roll would stop rolling, so to speak. 

The next day, oil began its "mammoth dive" driven by "evil conspiracy" to $30, an 80% collapse. How's that for "mammoth dive"?

That is the true Rick Santelli, reporting live from the Devil's Den, broadcasted on CNBC for your viewing pleasure and always shilling for his buddies at the CME.  

Oh, and another thing....if you're one of those unfortunate millions across America who has lost their job and can't make ends meet, then you're a "loser" - those are his words.  

Wed, 01/19/2011 - 01:18 | Link to Comment Cleanclog
Cleanclog's picture

Can't disagree, but must emphasize that Kneale is the absolute worst!!!  Ridiculous on air and down right idiotic on twitter.  Cannot imagine who/what/why some manager thinks his tweets are good for the post.  Thankfully I only catch a few per day and it has become entertainment - but not in a good way for Kneale.  He's a joke!

Wed, 01/19/2011 - 12:15 | Link to Comment ElvisDog
ElvisDog's picture

I have to ask you as well, RNR, did you even listen to the audio clip that came with this post? Was there anything in there that wasn't a reasoned, well-thought out analysis? Are you so blinded by your politics that you can't even think anymore?

Wed, 01/19/2011 - 10:03 | Link to Comment DosZap
DosZap's picture


Wed, 01/19/2011 - 10:05 | Link to Comment DosZap
DosZap's picture


 (need a new Av bro).

Reality "BITES" huh?.

Wed, 01/19/2011 - 12:12 | Link to Comment ElvisDog
ElvisDog's picture

You're an idiot 66sexy. Santelli is a voice of reason in a world of BS. Did you even listen to the audio connected with this post? There was nothing political in it. Just common sense as far as I could tell.

Tue, 01/18/2011 - 23:57 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Let me summarize TPTB party line, to be re-circulated by all approved mouthpieces: the economic outlook is fair and sunny in the medium-term, partly cloudy with a chance of rain in the short term, and an endless, cloudless summer in the long term. Any questions?

Wed, 01/19/2011 - 03:50 | Link to Comment jeff montanye
jeff montanye's picture

endless, cloudless summer like, say, death valley?

Wed, 01/19/2011 - 00:00 | Link to Comment Oh regional Indian
Oh regional Indian's picture

He is cool. Truthy, but then anyone on TeeVee telling an ounce of truth to the tons of lies is awesome by comparison, eh?

A word on the Japanese demographic crunch.

They watch too much twisted pornography. Kind of forgot what sex is really all about. Been there, seen it, it's true.

Boycott and girlcott porn.

Draconian but simple solution! ;-)




Wed, 01/19/2011 - 12:18 | Link to Comment ElvisDog
ElvisDog's picture

I've noticed that there are a lot of rape scenarios in Japanese porn. Don't know what that means culturally. Of course, if you want to get rid of porn in this country you would have to shut down HBO, Showtime, and Cinemax.

Wed, 01/19/2011 - 00:01 | Link to Comment RobotTrader
RobotTrader's picture

When is Eric going to interview the CEO of Jones Lang LaSalle?

I see that it made another new 52-week high today, and now pays a paltry yield of .22%.

The commercial real estate crash that never seems to happen.

Who would have guessed that $14 trillion in deficits, a hockey-sticked Fed balance sheet, and unlimited POMO's would have caused a bubble in REITs?

Wed, 01/19/2011 - 00:38 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture


Whats that podcast you posted 2 weeks ago about momentum trading/ you said it was one of the better explanations ... could not play mp3's at the time my itunes - blowtorched.


Wed, 01/19/2011 - 11:06 | Link to Comment oddjob
oddjob's picture

'my itunes'

Thanks for summing up your life in 2 words.

Wed, 01/19/2011 - 10:42 | Link to Comment Richard Head
Richard Head's picture

I really don't have the words to describe watching you two interacting.

Wed, 01/19/2011 - 12:16 | Link to Comment GoinFawr
GoinFawr's picture

I'll try:

Like watching two guys standing around a back alley fire pit picking each others' noses, and eating it.

Wed, 01/19/2011 - 00:09 | Link to Comment 66Sexy
66Sexy's picture

Funny how we still discuss the stock market and wall street as if they were still legitimate investment vehicles..

Bernake showed his ass today: He basically went on record as implying that stock market performance IS the economy... This was his response to the fact that QE was not working because housing is not recovering and unemployment is not going down.

He might as well have said; "Buy the fucking dips"

'Melt up' time. I rewatched that vid, and it has aged well from march 2010.

Wed, 01/19/2011 - 00:09 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Why interview an unintelligible human?

Wed, 01/19/2011 - 00:41 | Link to Comment RockyRacoon
RockyRacoon's picture

You were interviewed?  Oh, do tell.

Wed, 01/19/2011 - 00:10 | Link to Comment johngaltfla
johngaltfla's picture

Wasn't it interesting that when Rick started to report that there was no "fat finger" trade in Treasuries today, Bubblevision "suddenly" had audio problems.........

I'm just sayin'....

Wed, 01/19/2011 - 00:11 | Link to Comment chump666
chump666's picture


Right now one of the biggest inflation/commod/FX risk meltups/USD sell trade is happening.  And it's all Asia baby...the UST yield spike was a nice pre-curser.

Who knows what they are doing, but they are selling the USD hard.  MAybe to protect their massive secret EU bond buy ups. whatever, oil will go ballastic on US/Europe open

Wed, 01/19/2011 - 00:46 | Link to Comment bob_dabolina
bob_dabolina's picture

I would love to give Bernanke the benefit of the doubt like Rick did. However, I can't give the benefit of the doubt to someone who has lied openly (on numerous occasions)

#1. You can't tell me Bernanke had no idea there was a problem in housing. If you are the final arbiter of money and credit and you didn't see this coming (J. Paulson knew and he was being advised by Greenspan....don't tell me Bernanke and Greenspan never chat) than you are incredibly incompetant, or lying.

#2. Bernanke admitted in an interview that QE was "printing money" and in a second interview regarding QE2 he said that QE was NOT "printing money" So, either Bernanke has an abstract way of rationalizing what he is doing...or he is lying.

#3. "We will not monetize the Federal debt"

-Just months later the Federal debt is monetized (officialy)

As the poor starve, the middle class dwindle, Wall Street drowns in excessive wealth, and we are compulsively lied to...I am supposed to give him the benefit of the doubt?

Wed, 01/19/2011 - 00:56 | Link to Comment SheHunter
SheHunter's picture

Hearing Santelli shrill over the glorified "success" of each treasury auction has me headed from the mute button.  Reveling each moment we sink further into the debt-hole, clamoring the unparallelt success of this and that auction...Santell is another shouting head contrived to manipulate the masses.

Wed, 01/19/2011 - 01:04 | Link to Comment ebworthen
ebworthen's picture


Choice phrases from the interview:

"Global Sovereign Ponzi" (Central Banks/Governments/Planners)

"Champagn Economists" (Haven't been shopping, filled their gas tank, or cooked in years).

Yes, banks and governments victimizing their citizens to continue the privatization of gain with the socialization of losses; the frontespiece being social welfare entitlements which are removed or taxes are raised to increase the bacground privatized gains.


Wed, 01/19/2011 - 01:25 | Link to Comment RobotTrader
RobotTrader's picture

I think that after today's straight up vertical move in AAPL from the opening lows...

And subsequent breakouts in the likes of SBUX, WFMI, JLL....

And insane moves in travel and leisure stocks like TZOO...

The CIGA's, GATA boys, and KWN followers are eventually going to demand that Eric King interview the CEOs of these companies to hear from the horse's mouth why:

- the consumer hasn't retrenched

- why the stock market hasn't imploded

- why the "Endgame" for the financial system hasn't happened

- why the massive reflation has resulted in huge bubbles in many sectors but gold stocks have been left in the dust.

Wed, 01/19/2011 - 11:35 | Link to Comment DoctoRx
DoctoRx's picture

Consumer has retrenched.  Gallup reports discretionary spending on a 14-day average down to a new low for the past 20 months of $54/day.  3 years ago it was double or more than that; I recall as high as $130.  And that is not adjusted for inflation.  And it takes into account all the money printed to transfer money to consumers.  Robo, assuming you know anything about the stock bull---- market of the late 1990s, one cannot draw a relationship between upside breakouts in stocks and economic reality.  

Let us remember that in March 2000, a classic buy the weakness occurred when techs peaked and simultaneously the value stocks of the day such as HMOs, homebuilders, and various commodity and general industrial stocks simultaneously bottomed.  ABX at 12X estimated 2011 earnings, below its 2008 high with gold much higher than then (and oil lower, a major cost input for miners) strikes me as a better intermediate-to-long-term hold than TZOO or PCLN. 

Basically, new money is largely going to the Obama coalition of banksters and big corporate insiders plus those dependent on government.  As long as enough of the new money goes to those who can save it and not spend it, then CPI can be reported as low.  And given the structure of the markets ZH reports on, stocks will see their share of the deployment of new fiatscos.  

BTW AAPL now flat to marginally down on the day.  IBM breaking out on fundamental strength, however . . . I am 98% out of AAPL . . .

Wed, 01/19/2011 - 02:02 | Link to Comment chump666
chump666's picture

biggest threat to the global economy right now is China.



Wed, 01/19/2011 - 02:32 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Rick Santelli probably was forced to have a 'sit-down' with Jeff 'welfare queen and China abettor' Immelt, one of Obama's biggest butt buddies.

Wed, 01/19/2011 - 04:05 | Link to Comment Seer
Seer's picture

Could someone who watched this (I did not) state whether Santelli mentioned anything about problems being associated with the Ponzi Growth scheme (endless growth on a finite planet)?  If not, how come?  If he doesn't acknowledge it then he's just another fucking talking head just like all the rest, either ignorant of the REAL fundamental issues or is operating as a big distraction.

Wed, 01/19/2011 - 07:57 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Most revealing is Santelli's implication that the rest of world is still purchasing US Treasury Instruments.

He has his 'talking points' down pat and jumps from one to another so fast that it is impossible to absorb what he is saying in one listen.

The overall impression that he attempts to leave listeners/viewers with is that all is going to work out well since we have a bunch of new pols in DC and that they will make a serious attempt to reign in the deficit spending.

Dont you just love it when he says 'Bernanke is a principled man with a good heart and has the best of intentions'? (paraphrased)

Santelli also mentioned that gold was down because 'retail investors perceived profits elsewhere' (also paraphrased) and that 'gold had become 'a bit frothy'...LOL... The truth is that gold and gold mining shares as a percentage of global assets are now 1921 they were 1932 1948 1981 26%...But, now in 2011, when gold as a % of global assets are .8% they are a 'bit frothy'? I believe that Santelli is 'a bit frothy'!

Think of Santelli's position this way; he is employed by a large corporation that owns the media outlet that gives him air time and pays his salary...that large corporation is in turn supported by the Fed/Treasury/ Gov/ Corporate complex that is reaping rewards from the booms and the busts. Why would Santelli say anything that might break his rice bowl?

If his on air tantrum which led to his current popularity as a faux contrarian was anything but staged then Santelli would no longer be employed by a main stream media outlet...imo.


Wed, 01/19/2011 - 08:35 | Link to Comment Pants McPants
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Wed, 01/19/2011 - 09:35 | Link to Comment johnnymustardseed
johnnymustardseed's picture

Screw Santelli and the rest of the CNBC hypocrites they would all be unemployed if GE was not bailed out to the tune of $140 Billion. They bitch all day about to much government spending and they bash Obama after receiving billions of taxpayer money. Rick never talks about that in his asshole tea party rants.

Wed, 01/19/2011 - 10:17 | Link to Comment DosZap
DosZap's picture

Someone clue me, I still have no clue WHY McDonalds( needed bailout coin.

The Sonsabitches make money hand over fist!!.

Like, they NEEDED it?.

I mean hell offer me a 0% loan, and I would not take it,unless I did not ever have to pay it back.

Wed, 01/19/2011 - 10:27 | Link to Comment BearOfNH
BearOfNH's picture

What is this KWN addiction to audio only? Is Eric King a man of the twenties? There's a reason everybody in the first world watches television: it is a much richer media experience. From charts and animation to arm gestures and subtle facial cues. If you're trying to convey information, video serves you much better.

And don't play the "American Idol" card. Bit for bit, there's as much trash on radio as there is on TV. If you're trying to make a point, do it with video.

Wed, 01/19/2011 - 12:19 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Many times KWN interviews are by phone.

Wed, 01/19/2011 - 12:38 | Link to Comment Mariposa de Oro
Mariposa de Oro's picture

I've never seen the man's face, but could it be that he isn't particularly handsome?  Americans have been conditioned to trust/admire exceedingly attractive people.  His physcial appearance could get in the way of delivering his message.   Just guessing here.....

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