• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Santelli On False Dictatorships And Fed Exit Strategies

Tyler Durden's picture


In a little under three minutes, CNBC's Rick Santelli clarifies (in a much-needed manner) that we do not live in a monarchy or dictatorship (hoping for benevolence) - no matter how many Democratic senators and congressmen believe the President was given a mandate leaving him "holding all the cards" - we live in a republic (where the sovereignty rests with all individuals) and removing 'debt ceiling' checks and balances (for example) is a ride down a slippery slope. The chagrined Chicagoan then goes on to discuss the fact that the Fed, having unloaded another package of potentially infinite unsterilized money-printing, was actively discussing its exit strategy. Put simply, Santelli notes, "mark my words" the market will decide that exit - and the Fed had better be ready when it comes.


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Thu, 12/13/2012 - 16:21 | 3060646 Seer
Seer's picture

I've got a rare one...  She can actually think logically (which throws me off a bit because I second-guess this when wondering why she married me)...  Face-to-face conversation is good, and there aren't very many faces that are more beautiful than her's, so... lucky me!

Thu, 12/13/2012 - 16:31 | 3060691 MachoMan
MachoMan's picture

So you want to have sex with a woman with a really large penis horn?


*chris hanson voice* tell me about your father...

Thu, 12/13/2012 - 15:01 | 3060306 GMadScientist
GMadScientist's picture

There are two problems with Keynesian stimulus; first, that it does work, in a limited sense, giving proponents creedence well beyond what they deserve, and second, that you can't stop once you've started without causing another crash.

Like a medicine that has no curative power, but alleviates symptoms, at least until your tolerance and homeostasis make it impotent.

Thu, 12/13/2012 - 15:14 | 3060368 HoaX
HoaX's picture

Keynesian stimulus would mean using the money to actually build useful stuff. You know, infrastructure projects, bridges.

Not saying I´m into Keynes but this has jack shit to do with his ideas.

Thu, 12/13/2012 - 15:28 | 3060434 GMadScientist
GMadScientist's picture

There are a lot more "monuments" than Hoover Dams, when all is said and done, but unlike most here, I've actually read the general theory and understand the illogic in the classical approach that the man was attempting to address. And you can make the point that the hundreds of billions in block grants is directly correlated to the monetization of US debt by our good friend and the bad bank.


Thu, 12/13/2012 - 15:33 | 3060454 Orly
Orly's picture

Exactly.  Just like "supply-side" economics, which would also work, neither idea has been implemented properly.  Keynes said when you need to borrow, go ahead but build useful stuff.  He also said that when times are good, you save for a rainy day.

Can't really expect the programme to work unless it were implemented on both sides of the equation.  Same with supply-side.  The deal was to take away all the tax loopholes.

As in Marxism, Communism, Capitalism and Socialism, great ideas that can benefit all of mankind are perverted for the few who write the laws or pay to have the laws written for them.

Same old, same old.


Thu, 12/13/2012 - 15:51 | 3060537 ShrNfr
ShrNfr's picture

"You know, infrastructure projects, bridges." - Where I come from those are known as overhead. Some overhead is necessary. Not all overhead is. They "stimulated" a perfectly good road near where I live. The old road was fine and actually had twice as many lanes as the "stimulated" road. Of course, Wagner Act wages were paid.

Thu, 12/13/2012 - 15:19 | 3060387 forwardho
forwardho's picture

Three cheers for a hot shot of pure morphine!   Yea!

Thu, 12/13/2012 - 15:26 | 3060423 GMadScientist
GMadScientist's picture

Crap. Stepped-on methadone agin.

Thu, 12/13/2012 - 15:29 | 3060437 edotabin
edotabin's picture

Like a medicine that has no curative power, but alleviates symptoms, at least until your tolerance and homeostasis make it impotent


Looks like the FED looked to the FDA for answers. Just cover the symptoms and make tons of cash doing it. Screw cures!

Thu, 12/13/2012 - 16:07 | 3060588 Clinteastwood
Clinteastwood's picture

The problem with drugs is...

.....sooner or later you have to come down.

Thu, 12/13/2012 - 15:02 | 3060307 mayhem_korner
mayhem_korner's picture



I'm picturing the Bernank curled up in a corner stabbing his Santelli voodoo doll with a needle...

Thu, 12/13/2012 - 15:30 | 3060440 GMadScientist
GMadScientist's picture


Thu, 12/13/2012 - 15:31 | 3060451 ejmoosa
ejmoosa's picture

I think it's more like he's sitting in a corner, popping Viagra by the handful, and yet he still can't get it up.  Just one more....

Thu, 12/13/2012 - 15:01 | 3060308 surf0766
surf0766's picture

We are past the point of no return. They are just waiting for Jan 20 to complete the transformation. The debt ceiling vote is a joke. It will be done away with to protect the people. 

Thu, 12/13/2012 - 15:06 | 3060325 Caviar Emptor
Caviar Emptor's picture

That's right. There really is no viable alternative. And the public at large and the global community will vote not with their feet but with their asses, pluncked squarely and firmly on the couch receiving the truth as it emanates from a rectangular-shaped oracle.

Thu, 12/13/2012 - 15:16 | 3060371 forwardho
forwardho's picture

So right Surf, If there ever was a point of  return. Living a complete fantasy since well before '08. Sort of a very prolonged Whille-e coyote moment. Although not to sure about the "protecting the people" part.

Thu, 12/13/2012 - 15:32 | 3060452 surf0766
surf0766's picture

"protecting the people" is gov't speak for take control of everything

Thu, 12/13/2012 - 16:35 | 3060710 Matt
Matt's picture

Grandma is protected. Grandma has gone down the stairs. We are the space robots. We are here to protect you from the terrible secret of space.


Thu, 12/13/2012 - 15:43 | 3060506 SmallerGovNow2
SmallerGovNow2's picture

When they remove the debt ceiling there will be NO ONE buying our debt.... hey wait a minute...

Thu, 12/13/2012 - 15:51 | 3060534 NotApplicable
NotApplicable's picture

Well, they won't be that upfront about it. They'll just tie it to the unemployment rate, or some other genius idea that measures flow, rather than volume.

Because, as we all know...

They have to do SOMETHING!!!

Thu, 12/13/2012 - 15:03 | 3060311 fonzannoon
fonzannoon's picture

Liesman: "Rick if you are so concerned about the debt why aren't your traders selling treasuries right now instead of buying them?"

Santelli: "Traders wan't to make money".

Liesman: (asks same question)

Santelli: "Let's ask one!". (Grabs trader) "Hey Liesman wants to know why you guys are not selling treasuries!"

Trader: (no hesitation at all) "who would buy?"

End of story

Thu, 12/13/2012 - 15:11 | 3060349 Dr. Engali
Dr. Engali's picture

That's so true in all these no bid markets. If there was any selling volume at all the "bids"would just disappear.

Thu, 12/13/2012 - 15:18 | 3060381 cougar_w
cougar_w's picture

LOL that was priceless.

Thu, 12/13/2012 - 15:29 | 3060444 TonyCoitus
TonyCoitus's picture

Ha ha ha.  That's hilarious!  Anyone have a video of this?

Thu, 12/13/2012 - 15:37 | 3060476 SheepDog-One
SheepDog-One's picture

THAT is the video clip I wish was selected to show here....had to have been proceless! 

Thu, 12/13/2012 - 15:03 | 3060313 Donlast
Donlast's picture

Thank God for Rick Santelli.  We should go down every night and wear holes in the carpet to give thanks that he exists. 

Thu, 12/13/2012 - 15:22 | 3060314 Flakmeister
Flakmeister's picture

How come no one brings up clip of McConnell filibustering his own proposed vote on the debt ceiling?

For those that may have missed it




Edit: Added a link


Thu, 12/13/2012 - 15:34 | 3060463 TonyCoitus
TonyCoitus's picture

Fuck McConnell.  I wanna see the Liesman/Santelli exchange.

Do you suppose Jon Stewart will show it?

Thu, 12/13/2012 - 16:02 | 3060574 fonzannoon
fonzannoon's picture

I hope everyone heard Stewarts explanation of the debt ceiling to his ignorant liberal army.

Thu, 12/13/2012 - 15:12 | 3060319 A Lunatic
A Lunatic's picture

The FED is the market.

Thu, 12/13/2012 - 15:19 | 3060388 cougar_w
cougar_w's picture

That was my first thought ... sort of like "Yeah that's right the Market will ... uh ... whut? "

Thu, 12/13/2012 - 15:04 | 3060321 youngman
youngman's picture

I don´t think the MARKET can cause the exit...because there is no Market anymore....I do think there will be a big dump in treasuries...some country will panic or some event...but the Fed will just double or triple their balance sheet...4 trillion to 20 trilllion...whatever....after that...people will have to make investment decisions on that move....that is when it will get crazy

Thu, 12/13/2012 - 15:40 | 3060486 Blizzard_Esq
Blizzard_Esq's picture

"some country will panic or some event..."

Its all about Apple....

Thu, 12/13/2012 - 15:47 | 3060520 Seer
Seer's picture

You just might have something there.  It's the poster child for what's NOT right.  One of the largest cap'd companies (largest?) and it doesn't really produce anything that is beneficial for "productive" things: if anything, it subtracts.

Take a look at their chart.  See the slinky?

What's even worse is that FB is going up.  WTF?  If this isn't a clue about there being nowhere to go then I don't know what is...

Thu, 12/13/2012 - 15:07 | 3060327 BISTRO
BISTRO's picture

.... The bigger the better !!


Thu, 12/13/2012 - 15:08 | 3060330 Donlast
Donlast's picture

Sometimes one wishes Keynes was strangled at birth. 

Thu, 12/13/2012 - 15:21 | 3060398 A Lunatic
A Lunatic's picture

Shit, there are days I wish that for myself.............

Thu, 12/13/2012 - 15:21 | 3060404 cougar_w
cougar_w's picture

Well come on maybe not strangled. Not at birth.

But maybe sent to Java on a slave trader to work in the diamond mines, yeah sure why not would have clarified his thinking on some things.

Thu, 12/13/2012 - 15:51 | 3060533 Seer
Seer's picture

The caveats were there.  Further, if not him then someone else.  The banksters would have cooked up someone else or something else.  The ONLY sure fire way of keeping any of this from happening is to eliminate all centers of power.

Thu, 12/13/2012 - 15:08 | 3060331 AnAnonymous
AnAnonymous's picture

But, but, but if sovereignty rests with all 'individuals', does it mean that the government's actions commit all those individuals who ultimately holds the responsibility for the government's actions?

Does it mean that a third world is justified in targeting any 'american' individual in retaliation for the government the 'american' 'individuals' empower?

Ah, 'americans'. Everything is situational.

Government is good for hand cleaning when it comes to kill and live off blood money (this is always the government's fault) but when it comes to other stuff, suddenly, no more proxies, no more hitmen, the 'individuals' take charge.

And this 'american' Santelli, he will never put his life on the line to prove that in 'american' nations, in a republic, the sovereignty lies with the 'individuals'.

So funny.

'Americans' can not debate. it is absolutely impossible. They have built a world so full of contradictions they cant move in any direction without exposing themselves for what they are.

Thu, 12/13/2012 - 15:13 | 3060362 mayhem_korner
mayhem_korner's picture

'Americans' can not debate.


I'm pretty sure no one can debate with you AA...cuz no one knows what you're saying.  Or do you just let one of your pre-woked cats dance on your keyboard before hitting send?

Thu, 12/13/2012 - 15:20 | 3060380 akak
akak's picture

But, but, but if hygiene rests with all 'individuals', does it mean that the public defecator's actions commit all those individuals who ultimately holds the responsibility for the defecator's actions?

Does it mean that a turd world is justified in targeting any 'american' individual in retaliation for the flush toilet hygiene the 'american' 'individuals' empower?

Ah, Chinese shitizens. Everything is shituational.

Chinese shitizens are bad for hand cleaning when it comes to squatting and roadside crappery (this is always the shitizen's fault) but when it comes to other stuff, like projecting their society's innumerable faults and failings onto others, kneejerk blameplacing, forcing responsibility to the exterior, monolizing the speeching means, blobbing-up, and bigoted anti-American ranting, suddenly, no more proxies, no more hitmen, the shitizens  take charge.

And this Chinese shitizen AnAnnoyingUs, he will never put his life on the line to prove that in Chinese shitizen nations, in a so-called "people's republic", the sovereignty lies with the government, not even the shitizen.

So funny.

Hypocritical chinese shitizens like AnAnnoyingUs can not debate. it is absolutely impossible. They have built a world so full of contradictions, hypocriticality, insanitation and blind bigotry they cant move in any direction without exposing themselves for what they are: roadside crappers.

Thu, 12/13/2012 - 15:30 | 3060442 Big Corked Boots
Big Corked Boots's picture

Free Tibet, asshole.

Thu, 12/13/2012 - 15:08 | 3060334 PaperBear
PaperBear's picture

Dick Rick Santelli call the chairman of the non-Federal non-Reserve a dictator and that the market will hoist the chairman by his own petard when the market decides it is the time to exit ?

Thu, 12/13/2012 - 15:08 | 3060339 mayhem_korner
mayhem_korner's picture



My exit strategy is to leave when I'm kicked out.  Timmay

Thu, 12/13/2012 - 15:12 | 3060354 Caviar Emptor
Caviar Emptor's picture

Our National Debt Ceiling - A play

Act 1: The hand wringing

Act 2: The name calling

Act 3: The near-death experience

Act 4: The triumphant return of the status-quo 

Thu, 12/13/2012 - 15:53 | 3060546 Seer
Seer's picture

And when everyone leaves the theatre Mother Nature is waiting...

"Men argue, nature acts." - Volaire

Thu, 12/13/2012 - 20:31 | 3061326 YuShun
YuShun's picture


Thu, 12/13/2012 - 16:40 | 3060725 GMadScientist
GMadScientist's picture

Orpheus in the Underfundedworld.

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