Rick Santelli Exposes The Real Enemy (And It's Not Deflation)

Tyler Durden's picture

Since the crisis, and more likely decades before, we (the people) have been apparently 'happy' to have a small group of people in charge of picking winners and losers. "While free markets may have their hiccups," CNBC's Rick Santelli notes, when it comes to allocating resources, "the aggregate behavior of the marketplace is better than individuals." Crucially, Santelli blasts, if you're a saver, you understand now that you weren't picked as winner."

In fact, some might even say the 'saver' is the enemy of the recovery, but according to the Central Banks, as Rick rages, it is deflation that is the enemy. Bankers and governments love inflation because "if you owe a lot of people a lot of money, there's nothing better than to pay it back with cheaper money."

So, at the cost of living standards for the lower/middle class, the government inflates its debt away - so who is the real enemy.



Santelli concludes: "I don't think it's right and I think that we ought to rethink deflation because it's probably more of an extension of failed policy than what people really think it is - especially if you don't believe how they calculate the numbers to begin with."

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Philalethian's picture

Someone said deflation is the answer.

Payable on Death's picture

God bless Rick for taking a stand, an enthusiastic one for... er, something. To me, he's obtuse or opaque. He doesn't really make a plain point. See how ZH had to translate?

macholatte's picture


"the aggregate behavior of the marketplace is better than individuals."


not if you are the one making the decisions. then it's better to keep it allin the family.



From each according to his abilities, to each according to his needs.

Karl Marx

metastar's picture

They will let us bark all we want so long as we stay in the cage.

0b1knob's picture

< Deflation - it can't happen here.

< Deflation - it will happen because it is the last thing anybody expects.

NOTaREALmerican's picture

I would say,  it can't start here.

Some other very large country has to trigger the event.

Philalethian's picture

What if? That is what Prof. Zacharia Sitchen would say in class.

What if, there was the possibility of both happening? Deflation fast, then a quick return to hyper-inflation? All carefully planed, of course. Who profits from the crash and bash? Does that also hold true in world woar?

A population that has been controlled by the economy, can slowly wake up as the giant does to make things happen, or not happen that are quite unexpected. The people of the USA have no confidence in the leadership at all. How does that translate up the ladder of slaves? No body wants to pay taxes for anything, especially the warmongering bankster war-profit schemes. Fark people, there have been two cycles of this carp. Are the world's people collectively not able to learn from history? Many people are purposely killed in world wars that have population elimination agendas underwriting the actions towards moar woar cycles. Who is that stupid and thinks they will hide any riches for any future at all in a nuked world that will not sustain any life over, or underground for a few hundred thousand years, or so? Who thinks that gold will buy safety, uncontaminated foods, air, water, freedom, or have the strength to carry a few extra pounds along with the daily chores of mere prehistoric levels of survival? Often it occurs to the pondering mind, what would you buy in a world of nothing, and no one?

"One of the primary drivers of inflation is consumer spending. But consumers cannot spend money if they do not have it."

So then what happens? No one is shopping at wally world any moar.

More from this interesting article from the past that is no doubt old news here to the esteemed crew of ZH.



Beam Me Up Scotty's picture

"Who is that stupid and thinks they will hide any riches for any future at all in a nuked world that will not sustain any life over, or underground for a few hundred thousand years, or so?"

If my preps become worthless, and my gold becomes worthless, you needn't worry.  I will be using my last bullet on myself.  I won't be wasting it on some zombie.  Thats my ultimate bug out plan, if all else fails.  I am not leaving before consuming all of my beer, wine, and alcohol though. 

WhackoWarner's picture

Doe not take a genius to see.  Assets will dive in value while cost of living will soar,  Stagflation.


Your mansion will dive in value, Cost of living willl just fly fly fly.  Interest rates, may be separated.  who knows the laws passed? 


There is a very bad wind blowing.

TheAnswerIs42's picture


Beans, lead and gold.


disabledvet's picture

"Invade Russia. Take Moscow."

Gotta win of course.

TheReplacement's picture

In that case I am unable and need a helluva lot moar.  Nobody else, just me.  Yeah. 

Sorry, was dreaming of being a big banker.

NOTaREALmerican's picture

Re: To me, he's obtuse or opaque.

The magic of modern economics has been its ability to completely remove morals/ethics from the discussion (vocabulary actually). 

I think people can't just say "inflation is immoral".  Sure, the model works, but the poor who can't negotiate for higher wages at WalMart of McDonalds lose.

(Oh yeah,   Got a goddamn better job you scum.     You're nothing but worthless trash anyway for working at WalMart and McDonalds.  Goddamn losers who think they are entitled to everything in life.   bastards) 

Waterfallsparkles's picture

Yes, the Market totally ignores him.  Unless of course if he was the head of the FED.  Then you would see a scramble.

WhackoWarner's picture

There is a very good argument to be made regarding the complete non-necessity or continual GDP growth.  Like who the frig invented this model?  Did not exist before.  WHO convinced the wrorld that GDP growth, as opposed to stability, was success?  Stability is the model. 


Keynes all over and over.  Is there not some sanity left?  Growth is not a model.  Only for corporations.  That is all. Only for corporations.  And every single human being on this planet KNOWS that corporations are not "people".  Only the bribed think opposite.

Bokkenrijder's picture

Fucking annoying! CNBC is clearly penny pinching because CNBC videos are almost unwatchable in areas/countries where you there is limited broadband available. Those videos don't allow any buffering, so it plays for 1-2 seconds, stopping for 2-3 seconds, then playing again for 2-3 seconds. Etcetera...

RaceToTheBottom's picture

That, in a nutshell, is a great representation of the have/havenot economy we live in.

ejmoosa's picture

Deflation is Keynesian for falling prices due to lack of demand......

Eeyores Enigma's picture

Savers by definition don't borrow they save up for it.......DING! Imagine if everyone did that...TEOTWAWKI!!!

Since all money is LOANED into existence if loans are not happening and happening at an exponential rate (pyramid) then BY DEFINITION we have deflation.

Fortunate for the money lenders there are larger constraints on goods, services, and resources, which creates upward pressure on price which masks deflation with higher prices so they get to throw their hands up in the air and say "we are doing all we can". The more the constraints raise prices the more they get to say their efforts are obviously working so they need to raise rates to keep things in check. It's BS, It's a race to the bottom, or as I like to call it, "It's the Great Global Game of Musical Chairs To The DEATH" with the select few who are tapped in the only ones able to buy a seat.

I know this is stretching your comprehensive capabilities so read this over and over until you get it.

disabledvet's picture

Hey, dipshit. All that cash is sitting on the Bank's balance sheet? "That's to pay the interest rate."

Government is "all the rage" now.
But because of financial "wilding" the only options available are extreme in both nature and execution.

Siniverisyys's picture

Winning: buying tangibles with the bank's money, and paying them back with depreciated dollars.

AndrewJacksonsGhost's picture

Without the inflation created by their QE that GDP growth rate would be showing that we are in a depression. So the Fed has that going for them.

agent default's picture

Yes, but QE also inhibits any real exit from the depression by perpetuating unsustainable debt and allowing insolvent entities to get into even more debt.  In the end QE sacrifices the real economy, to allow those in charge to stay in power despite their epic failures. 

NihilistZero's picture

In the end QE sacrifices the real economy, to allow those in charge to stay in power despite their epic failures.

QE certainly accomplished it's mission then.  Banks are still in power and the muppets will still vote Team Red/Blue foolishly believing it'll make a diffrence.

ejmoosa's picture

QE contines to keep us from making the right decisions on the economy, rules, regulations, taxes and investment choices.

it's why we continue to see so much malinvestment.


Jack Napier's picture

QE cannot be forever. At some point the ROI, kidding, I mean the ROF (return on fraud), will be so diminished that the only way to get continued "growth" out of QE would be hyperinflation. Of course, to keep black holes of infinite counter-party risk chains based on a foundation of toxic assets from imploding the entire system, QE must continue for as long as it can. However, debt saturation levels are approaching terminal voluptuousness as evidenced by continued money printing with decreased growth. Whether US, EU, or China; they're all spiking the punchbowl, and on the verge of alcohol poisoning. Nobody will be calling the cops to this party, but unfettered addiction takes care of itself eventually.

trader1's picture


that's why you can bank on a surprise announcement over an upcoming weekend regarding the release of the new world governance upgrade.  

it will not only add new features but also correct the root causes of faults in the previous operating system.  

prepare for exciting times ahead, ladies and gentlemen.

klockwerks's picture

Trader 1, watch for it this weekend and as late as 4/1. Big, big changes coming. 

U4 eee aaa's picture

It can continue forever. After all,they are just resetting the prices. The problem with that is that constantly setting prices higher means that wages, at some point, also need to be set higher. When we hit that point, the game is pointless because nothing is gained. We are just chasing our tails. So before the laborers are allowed to participate in the price increase game, they decide to shut off the printer

Hal n back's picture

we are running -stil running 1 trillion cash flow deficits-the litmus check is take funded debt (to the penny on the treasury direct website from June 2013 and compare to now--up 900 bil in 10 months.


If we had to balance our budget, take 1 billion out of gdp and thats about 6%--we go from a bogus plus 2% GDP to negative 4 which is stil overstated. Neg 4 kills jobs and we crap out-who knows how far down the black hole will go. 


Then we have civil unrest.  Its going to happen-when is the issue.


Appears pento was censored at CNBC today-for outlining a US default.


we are in bigger trouble than we think.

Herodotus's picture

The debt must be repudiated before any real growth can begin.

BeerMe's picture

It is possible that a depression would have happened.  But I wonder how long it would have even lasted.  Government meddling always extends these things.

There is No Spoon's picture

if they reported the actual inflation rate then gdp would be negative for the last 9 years, showing that we are in a depression. the fed has nothing going for it

AndrewJacksonsGhost's picture

Just checking to see if you know I was being totally ironic. You know of another ghost that has killed a national bank?

RaceToTheBottom's picture

I think having 60% of the banks fail would have been a good thing.  Sure a year or two of pain, but overall a good thing.  Much better than what we have now and will have for the next ten years

SheepDog-One's picture

All the world is a stage and we are merely the shitpuppets clinging to the shitropes and trying to avoid the shit hawks.

alangreedspank's picture

Can you hear the shit hawks coming, Randy?

dexter_morgan's picture

"You know what a shit rope is, Julian? It's a rope, covered with shit, that criminals use to hold on to. You see, the shit acts like grease. The harder you try to climb up, the tighter you try to hold on, the faster you slide down the rope, Julian. Straight to jail. "

NidStyles's picture

Yeah, about that jail thing.... Where was Corzine again?

alangreedspank's picture

Deflation is actually a code word for: Fed blown bubble bursting with massive credit defaults that should not have been extended in the first place.

I think that's what Santelli means in the last paragraph.

NotApplicable's picture

Which is only a failed policy if one chooses to believe the hype.

Rainman's picture

agree, uber-leveraged asset deflation is what central bankers fear, not the declining prices for a carton of eggs.

sixsigma cygnusatratus's picture

Inflation is everyone walking around the chairs, having a great old time, but the music has to go faster and faster.  Deflation is when the music stops.

Save_America1st's picture

I don't know about the rest of you...but when I go to the grocery store, shop online, go out to eat, look for a gas station, want to buy a car or anything else, I'm searching for as much deflation as I can possibly find. 



NaiLib's picture

Depression due to unwinding of over indebtness in 2008 would have been a much "softer landing" than the one coming forward. Eventuall it has to come and at that point everbody will ask, Why did we not do it in the first place...?

NOTaREALmerican's picture

Re;  Why did we not do it in the first place

As somebody on here said many years ago:

Do you want to take a punch from Mike Tyson now (in 2008) or do you want to delay it until later but then take two punches?

Most people would take the second option and do anything possible to avoid it. 

(Janet, who's that black guy walking up the steps?)

decon's picture

"Everyone has a plan until they get punched in the mouth"

Mike Tyson

Yen Cross's picture

  I just got back from shopping an hour ago and boneless chicken breasts were on SALE for $6.89lb. Regularly $8.69 lb.

 This was at a local box store. I don't buy my meat from them.

dexter_morgan's picture

hey, them antibiotics and drugs they pump them chickens with cost money you know.