Santelli & Stockman Blast "Festering Fiscal" Budget Deal "Betrayal"

Tyler Durden's picture


Former OMB director David Stockman rages to none other than Rick Santelli that the budget deal is a "betrayal and a joke" and "the final surrender of the House Republican leadership to beltway politics." The dismal reality - that little to no one in the mainstream media will dare utter - the budget adds $70 billion to spending this year and next year, and "then they're going to pretend to save it in '22 and '23." Stockman blasts, "they've not only kicked the can down the road, but kicked it into low-earth orbit." The only hope of getting our fiscal house in order was if House Republicans stand up, and Stockman warns "will trigger an enormous negative reaction from Tea-Party Republicans." The truth hurts...

Santelli "we're not talking about kicking the timeline can til the mid-terms, " - "this is a two-year vacation on the fiscal budget."

"Just from the momentum built-in, our debt load will be $25 trillion by the end of the next Presidential cycle."


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Wed, 12/11/2013 - 16:18 | 4237303 LetThemEatRand
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Rant on all you want, guys.  Jamie and Lloyd are drinking the good stuff tonight!  Okay, so they drink the good stuff every night, but you get my meaning.

Wed, 12/11/2013 - 16:20 | 4237324 DoChenRollingBearing
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MINE was your first green LTER!  More to come I'm sure...

Wed, 12/11/2013 - 16:22 | 4237332 LetThemEatRand
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Thanks!  I see I've offended a banker already, though.

Wed, 12/11/2013 - 16:25 | 4237343 Joe Davola
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Didn't the fed need moar debt, lest QE wither for lack of bonds to monetize?

Wed, 12/11/2013 - 16:44 | 4237431 NoDebt
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"they've not only kicked the can down the road, but kicked it into low-earth orbit." 

That's not a half-bad idea, actually.  If we could put the debt in orbit we could avoid dealing with it indefinitely.  Out of sight, out of mind.

Wed, 12/11/2013 - 17:04 | 4237505 Beam Me Up Scotty
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Just sell some Millenium bonds.  Why stop at 30 years?  Amortize it over a million years.  That will make the payments nice and small.  How's that for a can kick?

Wed, 12/11/2013 - 17:39 | 4237637 QQQBall
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Yeah and the FED could buy them all forevah and hold to maturity.Problem solved - again

Wed, 12/11/2013 - 19:31 | 4238005 Oldwood
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Its not real money anyway so what does it matter? When all savings are destroyed and no one can afford to own a home, only rent, money valuation can change radically every month. I mean would we all like to get a raise once a month? With endless money printing we can and will! The raises will never be enough to cover our growing rents and growing our own food will be illegal (for our own protection of course), but what a great feeling! Monthly raises! I love it! Who said we couldn't have it all? Certainly not Obama, he just said we would have to share (our two bedroom cardboard box that was made in China).

Thu, 12/12/2013 - 07:05 | 4239033 Redhotfill
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Wow that sounds like those billion year contracts with $cientology  to pay for "auditing" to "clear" thetans.   El-Ron Hubbard for Prez. 

Wed, 12/11/2013 - 18:58 | 4237919 teolawki
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No problem. You can still claim with complete honesty: "No humans were harmed making this comment."

Wed, 12/11/2013 - 16:41 | 4237405 aVileRat
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Well, today's Myth was confirmed. Markets do work when you put a big enough gun to their head. People generally do understand the best names of 2013 in Finance/Media & Tech were boosted on carry-trade MOMO & EPS was juiced on financial leverage vs. operating execution in most of the interest sensitive sectors.

Now to see if this sticks or if we levetate back up towards 1800 next week.

And now, back to your TV show where two guys will blow up a dummy filled with dry ice. And get paid to do it.


Wed, 12/11/2013 - 17:08 | 4237515 Beam Me Up Scotty
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Levitation in 3...2....1.  They can't miss out on a Santa Clause rally after the big run up this year.  No way.  The PPT is probably already on the Hotline.

Wed, 12/11/2013 - 16:40 | 4237393 Pooper Popper
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Wed, 12/11/2013 - 17:15 | 4237542 AngelEyes00
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Here's a simple idea I call the 'Percentile Reduction Budget'.

Take last years expenses and figure out what the percentages are for each category of the whole amount paid.  Then take tax revenue for last year and figure out how much should have been spent on each category to have balanced the budget.  That's next years budget and the way it should be figured in each subsequent year.  If they want to pay down the debt, add that as a category and subtract it as a percentile just like all the other expenses.

Sorry people, I just had to write something down that made sense rather just playing political shuffle board like they do on Capital Hill. 

Wed, 12/11/2013 - 19:36 | 4238011 buyingsterling
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FSA says 'ain't gonna'

Thu, 12/12/2013 - 00:46 | 4238775 TheReplacement
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"Mr. Clapper, we've identified another terrorist on ZH."

"Sigh, you mean they aren't ALL terrorists?"

Wed, 12/11/2013 - 16:17 | 4237310 DoChenRollingBearing
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I completely agree w/ Stockman and Santelli (here anyway).  They will NOT stop spending.

Buy gold, have some CA$H, guna & ammo, all the usual...  Even some BTC!  Even a foreign company!

Diversification is more important than ever now that we see that the R-Team is just another bunch of DC pussies who will not fight for a smaller .gov.


Wed, 12/11/2013 - 16:20 | 4237323 James-Morrison
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The logical conclusion: Not much difference between the two parties.

They missed it.

Wed, 12/11/2013 - 16:37 | 4237380 DoChenRollingBearing
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Mofos!  Stop the Spending!  Mofos! Stop the Spending!

Mofos!  Stop the Spending!  Mofos! Stop the Spending!

Mofos!  Stop the Spending!  Mofos! Stop the Spending!

Mofos!  Stop the Spending!  Mofos! Stop the Spending!

Mofos!  Stop the Spending!  Mofos! Stop the Spending!



(Thank you for your patience dealing with my rant)

Wed, 12/11/2013 - 16:42 | 4237410 fonzannoon
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Stop being such a pussy. You bought your ticket. Now just sit back and enjoy the ride.

Wed, 12/11/2013 - 16:50 | 4237441 DoChenRollingBearing
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I wish I had twice the gold and 50 times the BTC I have now.



Nice video, short and to the point.  An excellent metaphor.

Wed, 12/11/2013 - 19:38 | 4238017 Oldwood
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AS long as we have a controlling central government with an all-seeing NSA intelligence network, no assets will be safe from seizure. We may not want to admit it but they own the internet and they control a substantial portion of commerce to where they can easily control the use of metals in trade. Their goal is no private ownership of anything that could be perceived as an asset. Interest doesn't pay enough anymore. Its not just government backing that induces them to loan money to people who cannot pay. Payments are temporary while rent lasts forever. Everything belongs to the "State" and their agents. There is no "long" position on anything anymore and that is why the economy is dying, and we all damn well know it!

Sun, 12/29/2013 - 23:41 | 4284452 indygo55
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I always wish that,

Wed, 12/11/2013 - 16:47 | 4237443 NoDebt
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I agree.  Once you go all fatalistic there really isn't anything left to do but enjoy the ride.

Wed, 12/11/2013 - 22:52 | 4238559 Harbanger
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Once you go all fatalistic there really isn't anything left to do but dig a hole and jump in when TSHTF.

Wed, 12/11/2013 - 16:42 | 4237411 JoBob
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Glad to see you got it off your chest. I hate it when you're peeved.

Wed, 12/11/2013 - 18:39 | 4237846 Againstthelie
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You know, that the money we have is only there if debt is created? Reducing the debt anywhere, means the money is vanishing, too. And since we also have a nice interest slavery, there must always be paid back more, than is available.

And you shout "Stop the spending!"?

You should inform yourself about the scam and lie this monetary system is!

Wed, 12/11/2013 - 21:37 | 4238368 Drifter
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"Reducing the debt anywhere, means the money is vanishing, too."

You should inform yourself first. 

Money vanishes only when debt is paid back to the bank where the money was created. 

If debt is written off without being paid back, that money is still out there.

If Fed sells securities for less than it paid for them, the difference is still out there in the money supply.  Only the money paid to the Fed for those securites disappears.

It might not disappear even then.  Fed might use that money to buy other securities.

When money can be created by writing a number on a ledger sheet (or the computer equivalent), it's not money obviously.  It's a fantasy, a game.  It's not money any more than writing a number on a chalkboard.

It's an accounting game.  Our whole monetary system is just an accounting game.  Numbers on ledger sheets (or the computer equivalent).

We don't have money anymore.  We have credits.  Credits in an accounting system.   A score on a scoreboard.  That's all it is.



Wed, 12/11/2013 - 16:17 | 4237313 socalbeach
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The only differences between the Republican and Democratic leadership are the lies they tell their supporters.

Wed, 12/11/2013 - 16:51 | 4237457 t0mmyBerg
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Right, just keep telling yourself that.  Dems are much more clever at getting elected because they are shameless demagogues.  Repubnicants are rather idiotic.  But to their mainstream the only thing to think about is can they take the gavel from Herr Reid this coming November, which means they need to keep the narrative focused on Obamacare, if they can keep any narrative at all, which they usually have great trouble doing if they can even identify a coherent narrative.  Personally I would like to see them succeed in neutering the lying scumbag from Nevada and cancelling Obummers last 2 years or forcing him to do everything through executive orders which will be quite controversial.  They may do it even if they screw up, obamacare is so bad.  But they will undoubtedly try to snatch defeat from the jaws of victory for their party.  That is just what they do.

Wed, 12/11/2013 - 17:01 | 4237499 NotAMathWhiz
NotAMathWhiz's picture

That's kind of cute, that you still believe that one party is better than the other.  They both only give a crap about one thing, they just tell different lies.

Say hello to Santa Claus for me, I'm sure you believe in him, too.

Wed, 12/11/2013 - 19:51 | 4238053 Oldwood
Oldwood's picture

Republicans are the resistance party. They have no other platform other than to resist. They can't sell their idea of hard work for advancement because corruption is too rampant for anyone to believe it. You can't have the level of theft we have witnessed and expect to inspire people to hard work. Republicans are very comfortable in their resistance role. No responsibility and no pressure to perform. Just keep duckin and dodgin, stamping their feet loudly while proclaiming great victories to be celebrated in the coming decades of unfulfilled promises. The corruption of Americans is "progressing" nicely while republicans stand to take notice and proudly claim "we told you so" at some irrelevant moment in the future. To act takes courage of which most have none and those that do are labeled as dangerous radicals by their own party. You can bet that there were plenty of Jews in Nazi Germany screaming words of warning while many others were marginalizing them as radicals and trouble makers, desperately trying to hang onto what they had, but ultimately it was all lost, except for Soros of course. He did OK.

Wed, 12/11/2013 - 17:07 | 4237520 phoolish
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I know dozens or hundreds of folks that believe raygun was a fiscal conservative that shrunk gov.  LOL.



Wed, 12/11/2013 - 16:20 | 4237318 DOGGONE
DOGGONE's picture

The Public Be Suckered

Wed, 12/11/2013 - 16:20 | 4237319 LetsGetPhysical
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Two Party Clusterfuck

Wed, 12/11/2013 - 16:18 | 4237322 RichardENixon
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Everybody's kicking the can hoping they can stuff their own pockets and get out before the can can't be kicked anymore. It's really that simple.

Wed, 12/11/2013 - 16:37 | 4237388 DoChenRollingBearing
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Looting the Treasury = Busting out the joint

Wed, 12/11/2013 - 16:20 | 4237325 frankTHE COIN
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The Great Santelli.

Wed, 12/11/2013 - 16:21 | 4237333 fonzannoon
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Can someone please ask David how interest rates will normalize if the fed owns the entire bond market.

(It's stock that matters now. Not flow)

Wed, 12/11/2013 - 16:45 | 4237427 DoChenRollingBearing
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"(It's stock that matters now. Not flow)"

Excellent observation.  The Fed holdings ARE that large.

Wed, 12/11/2013 - 16:49 | 4237449 NoDebt
NoDebt's picture

Don't worry.  They'll make more.

Wed, 12/11/2013 - 16:51 | 4237464 fonzannoon
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Of course they will, I agree with that. But they will be such a majority owner that no one else will be able to exert control.

Wed, 12/11/2013 - 17:01 | 4237493 Beam Me Up Scotty
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They've got infinite money supply to keep interest rates on a leash, just like gold and silver.

Wed, 12/11/2013 - 19:09 | 4237953 Rubbish
Rubbish's picture

Someone explain to the fonz that 95% of the people will refuse to pay the principle let alone any interest.

Wed, 12/11/2013 - 19:56 | 4238062 Oldwood
Oldwood's picture

Yet I'm always amazed that the store still accepts my money as though it had value!

Wed, 12/11/2013 - 18:41 | 4237866 Againstthelie
Againstthelie's picture

Because it's the flow that counts.

Wed, 12/11/2013 - 16:24 | 4237340 Yen Cross
Yen Cross's picture

   I seriously doubt that the " shadow puppet theatre"  will be in business through 2016, let alone 22' or 23' if we keep spending the way we are...

Wed, 12/11/2013 - 16:43 | 4237417 Keyser
Keyser's picture

I with you on this position and I believe the insiders in DC also know. Why put up a huge fight when they know the end game is at hand. Especially considering the shit storm they went through just in October. Why roll over 2 months later unless something is afoot. 

Wed, 12/11/2013 - 20:00 | 4238073 Greenskeeper_Carl
Greenskeeper_Carl's picture

by end of next presdential cycle Im guessing he means after the next presidents first term? ya I dont think we have that long either. Thats a pipe dream.


Wed, 12/11/2013 - 16:26 | 4237342 geotrader
geotrader's picture

Young people are not gonna think about sh*t.  This ain't their problem....just ask them.  



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