Santelli Slams Keynesians: "The Answer Is Always More Money"
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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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
Apple is 485 and the Nasdaq is 3,100
Insane
Which part?
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).
he's safe. He serves a purpose.
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."
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.
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.
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.
Excellent observation.
http://www.youtube.com/watch?v=LjwtuXEAMJc
All "spin" is nefarious, intrinsically; its purpose is to circumvent the truth in any dialogue.
So what else is new Rick?
And what's new about Santelli bashing? Pot. Kettle. Black.
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.
Glad to hear it. Seems to be a degree of Santelli hatred around here, don't know why. Peace.
Buying the F-ing Dip worked again.... shocking.
BTFD just means I'll own more of the Sh*t when it goes down.
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.
There is NO ONE else readily accessible and available to the numbers he is, saying anything like this. He must be praised.
Politicians that know how to solve them? Where?
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.
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".
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.
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?
Repealing the 17th amendment would be a step in the direction of reducing faction-alism.
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.
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'.
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?
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.
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.
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.
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.
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.
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?
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...
+ 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.
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".
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.
Long Live Santelli!
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.
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.
If Schindler had been a Keynesian, think how many more he could have saved...
I think you should get an award for that comment.
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.
Tom T. Hall had it right: "Faster horses, younger women, older whisky, and more money!"
Santelli's the perfect mascot for zerohedge - loud, aggressive, bearish and usually wrong.
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.
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.