Santelli Slams Keynesians: "The Answer Is Always More Money"

Tyler Durden's picture




 

Correlation, causation; cause-and-effect; Birinyi's Ruler; and Bernanke's Hammer. CNBC's Rick Santelli attempts to open some minds to the "nefarious" levels to which banks and politicians will go to infer from data and bolster our crowd-sourced confirmation biases. Santelli dismisses the meme that government dysfunction is the cause of our problems - instead stating that it is the effect. The main cause of this dysfunction is that we have problems we need to solve, politicians who know how to solve them, but that solving them is not only going to be painful for everyone - but most importantly for their respective bases - and therefore dysfunction ensues. From ratings downgrades not being caused by dysfunction (rather by an inability to deal with entitlements spending and debt) to the Federal Reserve losing the nation's trust acting not for liquidity needs but for insolvency; Santelli aims his magic marker finally at the Keynesians, for whom cause-and-effect is all, adding that their answer to everything is "always more money" to paper over short-term pain, as he rhetorically asks "in ten years when we look back, is the weight of all this debt going to take care of all of these impulsive upticks?" Must watch...


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Tue, 01/15/2013 - 15:41 | 3154922 firstdivision
firstdivision's picture

Anyone explain the last three releases coming exactly the same for three months in a row?  http://bloomberg.econoday.com/byshoweventfull.asp?fid=456184&cust=bloomberg-us&year=2013&lid=0&prev=/byweek.asp#top

Tue, 01/15/2013 - 15:42 | 3154931 fonzannoon
fonzannoon's picture

Apple is 485 and the Nasdaq is 3,100

Insane

Tue, 01/15/2013 - 15:54 | 3154981 NoDebt
NoDebt's picture

Which part?

Tue, 01/15/2013 - 15:43 | 3154934 sgorem
sgorem's picture

RICK SANTELLI FOR FED HEAD! (watch your back Rick, get a carry permit, let the ole lady start your car every morning, give the dog a bite of your dinner before you eat it, change routes everyday, you know the routine).

Tue, 01/15/2013 - 15:54 | 3154987 kridkrid
kridkrid's picture

he's safe.  He serves a purpose.

Tue, 01/15/2013 - 15:48 | 3154952 adr
adr's picture

The Keynesian says, "Look back in ten years, that's ten years from now, Bernanke just printed me a billion dollars now bitchez. Live in the now, print more later. Can always print more, ten years print me a trillion."

Tue, 01/15/2013 - 16:39 | 3155211 paterphysi
paterphysi's picture

No, the Keynesian says "save in the good times so we can spend in the bad" but the problem is we waste in the good times and then have nothing to spend in the bad. That is not Keynesian, although people seem to think it is...

 

Which is not to say Keynesian Economics is the answer. But if you're going to slam something at least have a basic understanding of it before you comment.

 

Tue, 01/15/2013 - 17:35 | 3155517 CrockettAlmanac.com
CrockettAlmanac.com's picture

Today's Keynesian is not necessarily yesterday's pie in the sky Keynesian who believed that government could act responsibly and rationally. Today's Keynesian knows that the government will never act rationally and has come to see that as a good thing. Keynesianism was a bad idea that has become a worse idea.

Tue, 01/15/2013 - 20:06 | 3155996 Diogenes
Diogenes's picture

The critics said "In the long run your policies must prove disasterous"

Keynes replied "In the long run we are all dead".

He was right. He is dead and under the sod, having reaped the benefits of his policies. Now we get to deal with the costs.

Tue, 01/15/2013 - 20:11 | 3156009 CrockettAlmanac.com
CrockettAlmanac.com's picture

Excellent observation.

Tue, 01/15/2013 - 15:49 | 3154954 koncaswatch
koncaswatch's picture

All "spin" is nefarious, intrinsically; its purpose is to circumvent the truth in any dialogue.

So what else is new Rick?

Tue, 01/15/2013 - 17:36 | 3155520 CrockettAlmanac.com
CrockettAlmanac.com's picture

And what's new about Santelli bashing? Pot. Kettle. Black.

Tue, 01/15/2013 - 18:10 | 3155637 koncaswatch
koncaswatch's picture

Rick's presentation was loaded with nefarious this and nefarious that, linked to a comment about it all being "spin". The presentation was all about things obvious to ZHphiles; hence, my what's new comment which I really don't consider "bashing." Santelli is for the most part appreciated by me and certainly is a breath of fresh air from the normal CNBS.

Tue, 01/15/2013 - 19:14 | 3155805 CrockettAlmanac.com
CrockettAlmanac.com's picture

Glad to hear it. Seems to be a degree of Santelli hatred around here, don't know why. Peace.

Tue, 01/15/2013 - 15:52 | 3154972 AccreditedEYE
AccreditedEYE's picture

Buying the F-ing Dip worked again.... shocking.

Tue, 01/15/2013 - 16:18 | 3155111 Caracalla
Caracalla's picture

BTFD just means I'll own more of the Sh*t when it goes down.

Tue, 01/15/2013 - 15:53 | 3154976 kridkrid
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This is Bullshit... "The main cause of this dysfunction is that we have problems we need to solve, politicians who know how to solve them, but that solving them is not only going to be painful for everyone - but most importantly for their respective bases - and therefore dysfunction ensues".

There is no solution to debt based money with interest attached at creation.  The system requires that aggregate debt be in a constant state of expansion.  Just because he can spot bull shit doesn't mean that he doesn't himself spew it.  He has a good shtick... that's about all.

Tue, 01/15/2013 - 16:35 | 3155203 therearetoomany...
therearetoomanyidiots's picture

There is NO ONE else readily accessible and available to the numbers he is, saying anything like this.   He must be praised.

Tue, 01/15/2013 - 17:22 | 3155463 NidStyles
NidStyles's picture

Politicians that know how to solve them? Where?

Tue, 01/15/2013 - 17:41 | 3155534 CrockettAlmanac.com
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I think his point is that everybody knows we spend too much on crap but everybody wants the politicians to keep spending too much on crap and as that further empowers the politicians that's exactly what happens. Not everybody is as far along the path as the ZH crowd. Santelli is coming along the path and he is enlightening others along the way and on CNBC of all places. It's a good thing.

Tue, 01/15/2013 - 20:08 | 3156004 Diogenes
Diogenes's picture

Europe. It was a French politician who said just a month or so ago, "We all know what we ought to do. What we don't know is how to get re elected after we do it".

Tue, 01/15/2013 - 15:54 | 3154984 falak pema
falak pema's picture

the keynesians believe in stimulating demand, unfortunately its too late as the damage done by Friedmanist monetisation fed on laisser faire and keeping state out of the loop is now doing the opposite to save oligarchy financialisation beyond repair.

We seem to have reached the asymptote of First world monetary creation to save its oligarchy assets; not to save the people. 

Tue, 01/15/2013 - 17:23 | 3155467 NidStyles
NidStyles's picture

Friedman was a Keynesian. Every post I read by you has some weird twisted version of reality that simply isn't true. Why is that?

Tue, 01/15/2013 - 16:00 | 3155008 F. Bastiat
F. Bastiat's picture

Repealing the 17th amendment would be a step in the direction of reducing faction-alism.

Tue, 01/15/2013 - 16:22 | 3155128 busted by the b...
busted by the bailout's picture

Yes, but I don't think it would be enough to save us now. 

We need term limits to remove the focus on reelection and fundraising.

Tue, 01/15/2013 - 16:33 | 3155190 therearetoomany...
therearetoomanyidiots's picture

Never thought I would say it but also need to take all corporate money out of elections.

If 'corporations' want to contribute, then the individuals can, up to the legal individual limits.  Same with "unions'. 

Tue, 01/15/2013 - 17:45 | 3155553 CrockettAlmanac.com
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So the government would work better if there were just a few more rules which the politicians could exploit in furtherance of their own agenda and that of their cronies?

Tue, 01/15/2013 - 16:01 | 3155009 TBT or not TBT
TBT or not TBT's picture

In short, an excess of democracy prevents a sane solution and unwinding of this.

The founders warned of this, and set up a representative republic of limited roles, to prevent this.

The federal income tax and the amendment that made senators be elected directly are key to understanding how we got here.

Tue, 01/15/2013 - 16:18 | 3155069 busted by the b...
busted by the bailout's picture

Santelli Slams Keynesians.  Should read "Santelli slams the system".

Rick made is clear that our political process is broken due to politicians voting in their own self-interest instead of in the interest of the country.

It won't change until we change them.

Tue, 01/15/2013 - 17:26 | 3155477 NidStyles
NidStyles's picture

You can't change human nature, that's the problem you people can't seem to understand. Then again if you understood that simple thing you wouldn't behave like normal irrational humans.

Tue, 01/15/2013 - 16:13 | 3155078 Glasater55
Glasater55's picture

Rick S was just on Closing Bell and said something so profound the comment got Maria B's attention.

Video not up yet but sure hope some brilliant child will take a look and explain.

Tue, 01/15/2013 - 16:14 | 3155079 Glasater55
Glasater55's picture

Rick S was just on Closing Bell and said something so profound the comment got Maria B's attention.

Video not up yet but sure hope some brilliant child will take a look and explain.

Tue, 01/15/2013 - 16:15 | 3155089 lasvegaspersona
lasvegaspersona's picture

Is Santelli a candidate for 'suicide by hot tub' or is he too prominent to eliminate from the public stage by such crude methods? Maybe he'll get the Aaron Schwartz treatment....death by hounding. Perhaps the Petraeus method of ' caught ya screwin'. I assume all of Congress is easily controlled now that the NSA knows everything about everybody. So lets all just shut up and behave?

Tue, 01/15/2013 - 17:01 | 3155333 vato poco
vato poco's picture

Honestly, I think it's got to the point where TPTB just don't even give a shit anymore. Corzine walks free, there are no riots. That fucking idiot in the white house gets re-elected, there are no national strikes. A hugely corrupt congress faces re-election, and the success rate for incumbents is 95%. So Santelli wants to rant? So what? It ain't like it's gonna change anything...

Tue, 01/15/2013 - 17:37 | 3155525 Dr. Engali
Dr. Engali's picture

+ 1000 you're right. I could go on to add a lot more..like The TSA groping thugs ,the patriot act, the NDAA...the list goes on and on.  What a bunch of docile obedient sheep this country has become.

Tue, 01/15/2013 - 16:38 | 3155221 Dre4dwolf
Dre4dwolf's picture

ACTUALLY, in this end-game situation if you want to keep the system going (as it is) the solution (END - ALL ) solution is to raise the minimum wage to 50$ an hour.

 

Prices will rise

Taxes Revenue will rise

Debts will be de-valued and payed off

Liquidity will flood all sectors of the economy

 

Its like clearing a clogged artery with a pressure hose.... its a little painful but it gets the job done and acts as a "re-set".

Tue, 01/15/2013 - 23:55 | 3156603 Nimby
Nimby's picture

HOw are debts going to be paid off if the purchasing power of the minimum wage worker stays the same?  You must be a democrat.

Tue, 01/15/2013 - 16:39 | 3155226 XtraBullish
XtraBullish's picture

Long Live Santelli!

Tue, 01/15/2013 - 17:07 | 3155381 haskelslocal
haskelslocal's picture

According to Santelli, ratings donwngrades to CNBC are not caused by the dysfunction of the actors/reporters. It's the selfish interests of the advertisers that are the cause.  

Tue, 01/15/2013 - 17:54 | 3155585 Venerability
Venerability's picture

I blame it all on Andrew Greeley.

He glamorized Chicago commodity traders as the sort of American Catholics all American Catholics should aspire to be.

Rick Santelli, from a very modest background and a state university graduate, forgot his roots and became a stooge - albeit an amiable one - for the likes of Joe Ricketts and the Koch Brothers.

It's a very American story - and an all-too-typical one.

Tue, 01/15/2013 - 23:53 | 3156597 Nimby
Nimby's picture

If Schindler had been a Keynesian, think how many more he could have saved...

Wed, 01/16/2013 - 01:05 | 3156757 AynRandFan
AynRandFan's picture

I think you should get an award for that comment.

Wed, 01/16/2013 - 02:26 | 3156860 ThorsteinVeblen
ThorsteinVeblen's picture

What is this thing that he speaks of? Is it a place or a time or simply a lovely vision of Newtonian concepts adapted to the religion of capitalism? Do we go back to pin factory days and forge ahead relying upon the 1776 Adam Smith assumptions upon which neoclasical macroeconomic models were born and depend? Tell more of this timeless and unknown land of the invisible hand where there is no U.S. debt, no excess nor any poor without a gracious and well directed fishing lesson. Those in servitude, slaves, Indians, new immigrants, children, prisoners, Mexicans, Asians, organized labor and now unorganized labor all resisted the effects of Rick's vision nearing reality. Like an old man once said, "My father would have liked to have raped and pillaged this new land too, but as a barber, there wasn't much he could do." The rules for markets need to be good or Rick's reality, which is Rand's fiction, comes to fruition in that capitalism fails because of its success.

Wed, 01/16/2013 - 02:48 | 3156875 TheObsoleteMan
TheObsoleteMan's picture

Tom T. Hall had it right: "Faster horses, younger women, older whisky, and more money!"

Wed, 01/16/2013 - 08:12 | 3157044 waterdude
waterdude's picture

Santelli's the perfect mascot for zerohedge - loud, aggressive, bearish and usually wrong.

Wed, 01/16/2013 - 09:39 | 3157168 dvfco
dvfco's picture

I have a hard time reading any serious article that uses the now pervasive term 'meme' to describe anything.  It seems a weak generational term has invaded quality journalism.  I have as hard a time taking articles or blogs employing the use of the term 'meme' seriously as I do taking people with an abundance of tatts and nose ring seriously.  Sometimes they prove to be hidden gems, but more often they are advertising weak journalism.   They remind me of authors who repeatedly make use of semi-colons in their writing.  The semi-colon are employed to make the author look smart; they are overused.  

I would guess this is a stupid pet-peeve of mine.  Otherwise, Santelli is great but diminishing in appeal just like thee rest of the CNBC reporters; Fox Business is a fresh change and Diane Macedo, Nicole Petalides, and Gerri Willis are more fun to watch; Gasparino gets better scoops than the entire staff remaining at CNBC.

Wed, 01/16/2013 - 14:03 | 3158492 aubreyfarmer
aubreyfarmer's picture
42). "IN WHATEVER COUNTRY JEWS HAVE SETTLED IN ANY GREAT NUMBERS, THEY HAVE LOWERED ITS MORAL TONE; depreciated its commercial integrity; have segregated themselves and have not been assimilated; HAVE SNEERED AT AND TRIED TO UNDERMINE THE CHRISTIAN RELIGION UPON WHICH THAT NATION IS FOUNDED by objecting to its restrictions; have built up a state within a state; and when opposed have tried to strangle that country to death financially, as in the case of Spain and Portugal. For over 1700 years the Jews have been bewailing their sad fate in that they have been exiled from their homeland, they call Palestine. But, Gentlemen, SHOULD THE WORLD TODAY GIVE IT TO THEM IN FEE SIMPLE, THEY WOULD AT ONCE FIND SOME COGENT REASON FOR NOT RETURNING. Why? BECAUSE THEY ARE VAMPIRES, ANDVAMPIRES DO NOT LIVE ON VAMPIRES. THEY CANNOT LIVE ONLY AMONG THEMSELVES. THEY MUST SUBSIST ON CHRISTIANS AND OTHER PEOPLE NOT OF THEIR RACE. If you do not exclude them from these United States, in this Constitution in less than 200 years THEY WILL HAVE SWARMED IN SUCH GREAT NUMBERS THAT THEY WILL DOMINATE AND DEVOUR THE LAND, AND CHANGE OUR FORM OF GOVERNMENT [which they have done they have changed it from a Republic to a Democracy], for which we Americans have shed our blood, given our lives, our substance and jeopardized our liberty. If you do not exclude them, in less than 200 years OUR DESCENDANTS WILL BE WORKING IN THE FIELDS TO FURNISH THEM SUSTENANCE, WHILE THEY WILL BE IN THE COUNTING HOUSES RUBBING THEIR HANDS. I warn you, Gentlemen, if you do not exclude the Jews for all time, your children will curse you in your graves. Jews, Gentlemen, are Asiatics; let them be born where they will, or how many generations they are away from Asia, they will never be otherwise. THEIR IDEAS DO NOT CONFORM TO AN AMERICAN'S, AND WILL NOT EVEN THOUGH THEY LIVE AMONG US TEN GENERATIONS. A LEOPARD CANNOT CHANGE ITS SPOTS. JEWS ARE ASIATICS, THEY ARE A MENACE TO THIS COUNTRY IF PERMITTED ENTRANCE and should be excluded by this Constitution." (by Benjamin Franklin, who was one of the six founding fathers designated to draw up The Declaration of Independence. He spoke before the Constitutional Congress in May 1787, and asked that Jews be barred from immigrating to America. The above are his exact words as quoted from the diary of General Charles Pickney of Charleston, S.C.
Wed, 01/16/2013 - 14:03 | 3158502 dadichris
dadichris's picture

i've long held the opinion that the crappy government is the cause of the problem, but have now changed to the opinion that a crappy government is the result of an unsound monetary system.

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