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"When You Have Fiat Currency, What Level Of Value Is Real", Santelli Asks
The rise in energy prices; the surge in food prices; and the march higher in nominal stock market indices - all symptoms of one thing - central bank (or government) policy; and CNBC's Rick Santelli is calling them to task for their two-faced ignorance. "What is the difference between outright currency manipulation versus the collateral damage to one's currency based on central bank programs?" he rhetorically asks, "in my mind, very little, but obviously, in the minds of many leaders of G-7 developed economies, there's a huge distinction." And therein lies the rub. As Japan follows Bernanke's decade-old plan to reflate by literally printing money into existence - just as every other developed fiat currency nation - their argument is that they are fighting deflation - or stimulating growth - when, in fact "The distinction between collateral damage and outright manipulation is absolute malarkey." Now that the currency wars have gone global - no matter what well-placed op-eds will try to convince otherwise - Santelli sums it all up perfectly, "in the end when you don't have a standard and you have printing and fiat currency, what level of value is real?"
We remind those bullish Japanese stocks that the 11% rise in the NKY since the holidays has created 0% wealth for a USD investor thanks to the JPY destruction (beta is 175 NKY points per 1 big figure handle shift in USDJPY) - ask the Zimbabweans how wealthy they felt.
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And its not even two ply!
Perception and the deadliest army. Thats all the value you need to be a currency standard. OH! And a bunch of stupid people, of course.
Most of the time, the CNBC videos don't play on my computer.
Error Code VID : 504
Does anyone else have this problem.
Sounds more like a blessing to me.
Yes, I am getting the same error code.
Ron Paul's microphone working yet?
The video you are trying to access is unfortunately unavailable at the moment.
A message has been sent to our customer care team so that we may fix the problem.
We apologize for any inconvenience.
Error Code VID : 504
...
Indeed Santelli isn't allowed to say fiat.
I never get that code, now I do. "Fiat", a dirty word now?
are we all completely shocked santellli has finally pointed out the emperior has no clothes? FIAT!
I know i am, he might get rattagened soon.
Thing is, he's the last draw they've got left, so they might as well keep him around while he chronicles their shared demise.
i forgot to say, i have never seen a video go down and stay down like this, not even cramer calling the idiots idiots.
It works for me. Though I notice they cut off the video before the end of his segment.
This worked for me.
Santelli Explains Currency Manipulationhttp://video.cnbc.com/gallery/?video=3000147769
Indeed Santelli isn't allowed to say fiat.
Yep- fiat is a 4 letter word!
No it's just u
I guess your anti-malware software flags them as containing bullshit.
If that was the case, I'd never be able to load MSN, MW, Bloomberg, CNN, or a host of other news websites- heck, I wouldn't have been able to get any of the Big Zero's SOTU BS!
This will play.
A US citizen is punidhed for $20 loan. What will be the punishment for $16,000,000,000,000.00
http://www.youtube.com/watch?v=7Fe5Pxk9WoI
I don't allow any CNBC on any of my devices. I do however have a picture of Cramer and LIESman on the bottom of my toilet
I have a picture of Irina Shayk on the wall in front of my toilet.
My cleaning lady keeps asking why I pee all over the ceiling.
To make that picture complete, you gotta add Blythemaster somewhere.
no bettering in sight
The video you are trying to access is unfortunately unavailable at the moment.
today was the first time for me. must be obama's new cyber security in action.
The problem was with the plugin-container.exe introduced in version 3.6.4. My Firewall was blocking it. When I added a rule to allow plugin-container-exe to make a connection the problem was resolved.
if it only had modern presidents faces on the paper. Then there'd be a bit of satisfaction wiping me arse
or cushy
Is Rick allowed to say 'fiat currency' on national TV?
The money changers wont like that.
Ask Valerie Jarrett. But pass it by Tony. And oh, by the way, have Alsammarrae take a gander at it, too.
Apparently not, he's been VID code error: 504'd
Rick is going to find himself relegated to a nice little place online, much like Judge Napolitano did when he spoke the unmentionable on Fox.
Bingo, the Judge and Beck were sensored off the air no matter what Fox or anyone else's story is. Fox was "pressured" to let those two go...
After all the anti-gun BS on Fox I have a hard time tuning in.
Most viewers don't even know what fiat currency is. They're just watching to be told what overpriced stocks they should invest in and that they should avoid gold because it's "risky".
lol beautifully said.
They think he's talking about some little POS car.
Well, it's not backed by any other "thing" ya know.
Things are important! Especially abstract things. They're absractly important.
Or so I've been told.
here i repeat a joke often told by armand dimele, wbai radio, etc..
.
albert einstein had a crack in his sidewalk and decided to repair it
and he did, replaced a slab with fresh cement and went back to his study.
later he looked out the window and saw children gathered around his
work and writing with sticks in the wet cement. he went running out screaming
at the children who quickly ran off. when he went back inside, elsa,
his wife and cousin, said "albert, why are you so mean to the children,
you love the children?".. albert said " i love the children in the
abstract, not in the concrete."
.
?
The unemployment problem will be fixed with Fed engineered tulip mania 2.0!
Free markets and price discovery mechanisms are no longer needed.
The monetary Gods at the Fed will decide where asset prices and tulip prices need to be in order for people to feel "wealthy" and spend.
"When You Have Fiat Currency, What Level Of Value Is Real", Santelli Asks.
And the answer is: whatever value the Fuhrer says is real. Next question?
That's what I'm counting on. I don't have to worry too much about it, our benevolent masters will look after their flock. If I did think about it, it would be too confusing anyway, like why something that's available in infinite quantity can continually go up in price, like who's lending the government all that money, like why things that are limited in quantity and hard to get go down in price, lots of confusing things in our modern economy. I'm just glad we have some super-geniuses looking out for us.
paging mr. whipple
How come there's not an article about Rosenberg's flip flop on Fast Money today? Isn't he ZH's resident bear? WTF?
No, that's 'Rosenpenis'....wrong guy.
Did he channel "Balls to the wall" Tepper, by chance?
Whether Rosenberg is spouting bullish or bearish -- he is not intelligent nor articulate.
"in the end when you don't have a standard and you have printing and fiat currency, what level of value is real?"
Similarly, when bonds outperform stocks on the day, "reality" didn't reassert itself, because what level of value is real? And when stocks outperform bonds, the markets aren't "ignoring reality" because, again, what level of value is real?
Isn't a FIAT what old community organizers could afford to drive?
Yes, indeed.
Why, I can still remember the good ole days when French cars would torch themselves. (Yet another jorb taken by the immigrants)
Nothing is real in the matrix Rick...only now you are starting to understand.
The real question is whether Rick really took the red pill...
or is he just faking it?
Well, it's really just an off shade of pink, thanks to the distortion added by Friedman.
Can someone wake me up when gold gets monetized at $15k and ounce please.
On that note; Jim Sinclair advising his clients it's all-in PM time. I don't suggest going full retard but I found it interesting.
Didn't know Sinclair had "clients". I find it interesting only because his timing has not been great and "all-in" now might work out 3 months from now but could signal a big smackdown dead ahead.
I think Sinclair is a good guy but even he admits he's related to the money masters. Gold and gold shares look cheap now but somehow always manage to get alot cheaper before blastoff. He's saying the current correction will be over by March. Unfortunately a ton of damage can be done between now and then. I hope not.
Point taken, not "clients" per se ( at least not anymore ). Friends? Interested parties?
Regardless, I wasn't quoting him as a catalyst for buying with both hands or anything. I just thought it interesting and worth passing along.
There's no guarantees but you would think that we made a pretty damn strong bottom at $28-29. I don't think the margin reduction bs they're pulling is going to draw in enough spec money to fuck things as majorly as they did in May '11.
Anything sub $32 and a "dip" has been a green light for me to exchange some fiat.
Agree with you. This is an area to buy a dip, but the dip might get cheaper. I follow Sinclair all the time and he's been cryptic lately. When he gets cryptic, I get worried. Over the years that's meant there was a big correction coming. Hard to believe after 22 months in silver but these corrections usually end with capitulation of some sort. I don't think we've seen that yet. JMHO.
CNBC embedding is the worst #fail
While they fix the video, here's some reading on our favorite ranter you'll enjoy:
It worked for Howard Beale, Until it didn't
Indeed, fiat profiteers trashing fiat.
I fart in the general direction of Kudlow. This asshat preaches "king dollar", strong currency and then applauds Japan's devaluation
Hey Kudblow can we please get more of that asswipe Don Luskin on your show. Everyone loves an arrogant cocksucker with their dinner
Ummm... at this point EVERYONE'S salary is underwritten by the bailouts. That's what happens when the real market is long-dead yet is still animated in a zombie-like fashion.
While I have no doubts as to Kudlow's goals ("I don't drink the Kool-Aid, I mix it!"), I see Rick as operating coherently within his incoherent belief system (Friedman, again). What other market commetator would dismiss the legitimacy of valuation and pricing discovery as fully as he just did?
Perhaps he'll find an opening at the Daily Show?
Interesting disconnect with oil and equities. It's the old catch 22 that TPTB have been fighting http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Logarithmic&chdeh=0&chfdeh=0&chdet=1360789200000&chddm=384925&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY&cmptdms=0&q=NYSEARCA:USO&ntsp=0&ei=3u4bUdg2pprRAYr7AQ
Interesting indeed, thanks...
Must....Get....Fiat....Must Buy....
All western central banks and Japan agree to print to infinity and short gold at the same time to make it seem all is right. What a great plan..................if it wasn't for the dam Chinese buying up every available ounce of gold. Just sitting and waiting for them to announce how much "OFFICIAL" gold they have stored up over the past 3-4 years. An instant gold woodie on the news that 1,000 viagra pills couldn't replicate.
stateside
Well, I've been holding phyzz for nine years now and that can happen any old time. I've also been hearing it will happen any day now and yet it's like riding a fucking turtle.
Why do I think they're never going to let gold really run? The last 18 months has been sickening to watch. The last 22 months in silver has been even worse.
I know, I know, just keep stacking.
Don Patinkin showed that for a closed economic system, the level of prices could not remain undetermined.
But because he died before the internet, he never imagined that in a global system, where there is no price index or general level of prices but only relative prices (in term of fx), it is possible to live with an undetermined price level.
Under true cooperation among central banks, then it is conceivable to see economic activity grow, at higher prices, AS LONG AS, the economic agents lack an anchor for real value. It is therefore no coincidence that the price of gold is suppressed.
Interesting..Dorner's mom watched the stand off eating chips and drinking wine with friends at a Mexican resteraunt.
http://losangeles.cbslocal.com/2013/02/12/dorners-mom-spotted-drinking-w...
Oprah picked up the tab. Then there's the book deal...
Mom hit the fuckin' lottery as far as she's concerned.
She knew it wasn't him..... waiting for round 2, or a bunch of copycats coming for the LAPD. I feel that before any other people post a manifesto, they should actually have to read the definition of "Asymmetric warfare." He should have stayed anonymous, and used the Guy Falkes masks whenever he did a hit. Much better TV.... L for LAPD
It's Guy Fawkes
A profiteer of the fiat world trashing fiat. Interesting, maybe something significant is about to happen? Nah, ZZZzzzzzzz....
Cui Bono - like this blog.
Everyone has an agenda. Don't hate the players, change the game if you think you can....
It seems so obvious that existing debt was not going to be serviced without tremendous risk of default. The numbers had become too large. Central banks around the world agreed to print their curriencies in synchrony. Of course the result was to devalue the purchasing power of existing wealth. It also provided cover for the deleveraging. It allowed the bondholders relief for bad paper. Now we embark on raising the cost of living by too many dollars chasing finite commodities. Then comes the wage pressure which increases the performance of debt service. The message is clear. Screw those retired savers, hell they're almost dead anyway, and put a fork in this crisis that was brought about by the real estate bubble.
You don't believe the banking data, you don't believe the BLS data, but you do believe the demographic data?
Where are all those people that were inhabiting all those now empty buildings?
Regardless of what you think about this cohort of kids, do you really believe they are going to be paying for the entitlements, or that the feedback loop is going to find its own way back to equilibrium on a gentle glide path?
And why would you look at the US data as if it were separable from the rest?
Interest on interest on interest....QEInfinity.
Who cares of real value, anyway, price is a ratio of something measure in something else, Gold in Wheat, S&P in Tobacco, Tobacco Dollars. When you buy Gold you are actually long Gold/short dollars.
Actually Long short strategies are there to create such interesting measurements, you could for example measure life insurance books denominated in consumer spending stocks... Or other funky things like that.
FIAT IS FUN :-)
Actually teh best exercise would be to force someone to either start a fund in a systemtically strong currency. Like trying to make money when denominated in Gold. That would be a real challenge. The ones who manage to that are superstarts. Or say force a manager to have a net short position and make money. Super challengin too. You force young kids out of college to do that, and thne you tell them constraints are released. Those guys fly in returns because they force themselves to think backwards...
Following the money trail always provides some insight. Is this case in point where too much obligation to provide a rate of return greater than inflation in pension funds real reasoning for ctrl+p?
Continuing to drink the koolade would give me night sweats if I was betting a substantial retirement savings "guarranteed" by... (fill in the blank). Most public pensions are struggling to provide 8% in their CBA's, which will most likely end as moar municipalities default.
Just think of Detroits obligations alone.
Think about it that way.
If inflation runs say at 13% in 9 years. Short term interest rates at 9.5% and return on your pension 8%. Et voila...!!!
This link appears to work:
http://video.cnbc.com/gallery/?play=1&video=3000147780
Currency manipulation it is Rick.
Gold on sale again today.
Link above works. Thanks
When I read Matin Wolf's "The case for helicopter money" on FT.com I realize that it's nearly over. A bunch of Dr. Strangeloves are firmly in control. They are getting bolder and bolder, printing like there is no side effect, no opportunity cost, no downside. They will ignore all evidence. They will forget XX century history. Ultimately money will be worthless.
They have absolutely no choice. Which is why Santelli can get away with all his truthiness, as it is far, far too late to matter relating to the outcome.
What's the ratio of schrute bucks to stanley nickels?
The same as the ratio of unicorns to leprechauns.
"That's the good thing about standards...there are so many of them....."
This what Ben Benanke thinks....and also what the illegal immigrant who told Congress " I am not illegal, I am an undocumented immigrant" thinks.
They are both pursuing the same "logic".
My '79 Fiat Strada is very offended at all the name calling lately,,,,,,,
NOt real! SURREAL! It's a mirage market now!
... and obviously the technocratic solution to avoid future currency manipulation once all currencies have been Weimarized will be to only have one world currency run by a self-serving technocratic government (OK, so all governments are self serving).
For some reason, putting the "outright" (as opposed to covert) control of the world in the hands of self-serving parasites does not seem to be a good idea. Maybe investing in a supply of "bug-be-gone" is a better solution.
Video link is broken
All I know is this. Valentine's Day candy, (think M&M, kisses, tootsie rolls) cost $4.99 BAG at target today. Not a monster sized bag, just a regular, 16 -18 ounce one. This is about double what it was 3-4 years ago. I about fell through the floor when I realized it wasn't 2 for $4.99. It's a little thing, but it does make me wonder.
The dollar is 50% of every transaction in this country. Fiddle with it enough, and you just tanked the whole thing...
By the way, Japanese equities can be played with currency hedged through DXJ.
Just saying.
Fiat experimentum in corpore vili.
PVC Gun Burial Tube. Holds 3 long rifles Ak47, SKS, AR15 plus ammo and gold & silver. Check it out here.
http://www.ebay.com/itm/160970141105?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649
Don't worry the Chinese, Indians, Russian's Arabs and Jews are going to save us as they are all buying Gold like its going out of fashion.
Hey wait aren't they supposed to be the bad guys?
The sooner Gold and Silver reset to ther true values the sooner we get to a non fiat, value based system.
Santelli keeps blurting out the truth on national TV. obama is going to put him at tha top of his drone hit list.