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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SKY85hawk's picture

Santelli is correct, but there is something every American should do, soon.  That is, stop calling for Political changes and tax law changes and use the tools that are available.

There's an easy way to legally avoid increasing taxation on retirement income. 

Starve the Beast!

Start transferring your IRA or 401-k money to a Roth-Ira.  If you're not working your deductibles will allow sizable transfers at no cost.  Even FORBES has described this technique.

I've been transferring 20,000 each year.  You have to figure what works for you.

Then there's the question of how to invest the money.  I move between Long and Inverse ETFs.  When the market goes down the Inverse ETF rises in value.  These positions will run for months.  June 1 was a good time to go long. 

Currently, the market is trending down and the Inverse ETF is rising in value.  Take a look at Energy(ERX is long, ERY is short) or Financials(FAS long and FAZ short).

Withdrawals after age 59.5 are not taxable at all. No mandatory withdrawal at 70.5, either.

Keep in mind there is/was a 5 year rule on starting withdrawals, so get started!


You've done something good if you and your descendants are 'grandfathered' from future rule changes.   I think Congress Appropriating existing retirement money will be avoided by this approach.

If I'm wrong, we're beyond help.  /curse words not needed



blunderdog's picture

Yeah, I'm sure there's ZERO RISK they'll ever change those tax laws....

timehill's picture

It seems that CNBC has deleted/wiped clean Rick's segment.  Who says CNBC is not ethical??????

Bobportlandor's picture

I went to their website and other clips don't play either.

Half ass run company.

newengland's picture

CNBC - part of the Ministry of Truth as described by Orwell's 'Nineteen Eighty Four'; a warning based on what would happen to Britain and the world if the Socialist Internationale and their tougher communists got the whip hand.

We see it now: endless war. There are fewer congressmen of the military now than ever in the history of the USA, yet the Armed Forces serve longer overseas than ever in the nation's history.

Why? Because the overpaid political class like to play chess with everyone's life, so long as they profit, and their central bankster puppeteers protect them...with the blood of the Armed Forces, the honest Joe.

gaoptimize's picture

At the end, she said "The bigger the better".  I'm sick of this reinforcing the message of the tens of spam messages I get every day about this.  I'm going to make a version of Lady Gaga's "Born this way" video for all the (mostly white) guys out there who are sick of this meme.

Joke Heros's picture

When Santelli starts donkey punching the moneyhoney whoores and chasing down Liesman and rear naked choking him out on live TV, then I'll be interested in watching that clown shoe called CNBC again.


chump666's picture

Santelli calls reality.

I only listen to traders:

neutrinoman's picture

Hmmm, yes, the market will get there first, and before 2016 or even 2015. It will start with the Fed losing control of the long end of the UST market.

stormsailor's picture

what?  they buy 70% of it now, with  no repercusion.  whats another 30%

e.blair's picture

He misspeaks at the beginning and reverses republic and democracy.

From Germany With Love's picture

> suck at governing

> suggest the system is at fault at needs to be changed


Politicians are everywhere the same.


Baghdad-Bob121's picture

He is the only reason I watch CNBC!

newengland's picture

Now we are getting to the real deal. The USA is founded as a Republic of responsible individuals (all for one, one for all).

It is not a monarchy, not a dictatorship, not a 'democracy'. All that represents the thieving old world and its dupes, trying to subjugate the USA to the will of  dysfunctional monarchists, dictatorships and despots of the old world. Those dysfunctional types (see the EUSSR as the latest example) are 'corporatists': the vile compact between biggest banks, biggest governments and any big religion that will back them. All wrong. All unconstitutional.

Is Mr Santelli a Paul Revere of the  Republic, warning that the bankruptcy is coming and good folk had better get off their knees and fight the Feds' sophistry?  I hope so.

Derezzed's picture

Is Santelli the only smart guy at CNBC ? Jim Cramer ? Nah

newengland's picture

My children showed me CNBC when I still lived in England because they thought it would interest me with its financial stories. I saw a guy shouting, ringing bells and talking utter $hit, and later was told his name was Cramer.

Cramer, cram down for his puppet masters; freaks.

I like Santelli, by what I've seen of him on ZH.

I'd rather make money, home, community and family than watch bull$hit TV or political whores.

unemployed's picture

Rick is figuring out whether Corzine or the Fed government gives him greater satisfaction from the acts they perform on him.