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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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Fri, 03/28/2014 - 16:57 | 4603735 Philalethian
Philalethian's picture

Someone said deflation is the answer.

Fri, 03/28/2014 - 17:10 | 4603767 Payable on Death
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?

Fri, 03/28/2014 - 17:17 | 4603787 macholatte
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

Fri, 03/28/2014 - 17:48 | 4603903 metastar
metastar's picture

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

Fri, 03/28/2014 - 17:50 | 4603916 0b1knob
0b1knob's picture

< Deflation - it can't happen here.

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

Fri, 03/28/2014 - 17:56 | 4603937 NOTaREALmerican
NOTaREALmerican's picture

I would say,  it can't start here.

Some other very large country has to trigger the event.

Fri, 03/28/2014 - 18:18 | 4604023 Philalethian
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.


Fri, 03/28/2014 - 18:42 | 4604121 Beam Me Up Scotty
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. 

Fri, 03/28/2014 - 20:38 | 4604390 WhackoWarner
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.

Fri, 03/28/2014 - 21:16 | 4604483 TheAnswerIs42
TheAnswerIs42's picture


Beans, lead and gold.


Sat, 03/29/2014 - 09:07 | 4605197 disabledvet
disabledvet's picture

"Invade Russia. Take Moscow."

Gotta win of course.

Fri, 03/28/2014 - 22:01 | 4604604 TheReplacement
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.

Fri, 03/28/2014 - 17:28 | 4603817 NOTaREALmerican
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) 

Fri, 03/28/2014 - 18:20 | 4604029 Waterfallsparkles
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.

Fri, 03/28/2014 - 20:45 | 4604404 WhackoWarner
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.

Fri, 03/28/2014 - 17:38 | 4603845 Bokkenrijder
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...

Fri, 03/28/2014 - 18:05 | 4603974 RaceToTheBottom
RaceToTheBottom's picture

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

Fri, 03/28/2014 - 17:46 | 4603895 ejmoosa
ejmoosa's picture

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

Fri, 03/28/2014 - 19:22 | 4604236 Eeyores Enigma
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.

Sat, 03/29/2014 - 09:12 | 4605202 disabledvet
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.

Fri, 03/28/2014 - 23:11 | 4604766 Siniverisyys
Siniverisyys's picture

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

Fri, 03/28/2014 - 16:59 | 4603737 AndrewJacksonsGhost
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.

Fri, 03/28/2014 - 17:13 | 4603774 agent default
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. 

Fri, 03/28/2014 - 17:39 | 4603860 NihilistZero
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.

Fri, 03/28/2014 - 17:48 | 4603905 ejmoosa
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.


Fri, 03/28/2014 - 18:31 | 4604046 Jack Napier
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.

Fri, 03/28/2014 - 18:48 | 4604151 trader1
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.

Fri, 03/28/2014 - 19:58 | 4604318 klockwerks
klockwerks's picture

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

Fri, 03/28/2014 - 18:59 | 4604183 U4 eee aaa
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

Fri, 03/28/2014 - 23:43 | 4604828 Hal n back
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.

Fri, 03/28/2014 - 19:21 | 4604233 Herodotus
Herodotus's picture

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

Fri, 03/28/2014 - 17:25 | 4603813 BeerMe
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.

Fri, 03/28/2014 - 17:32 | 4603831 There is No Spoon
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

Fri, 03/28/2014 - 17:53 | 4603926 AndrewJacksonsGhost
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?

Fri, 03/28/2014 - 18:08 | 4603983 RaceToTheBottom
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

Fri, 03/28/2014 - 20:57 | 4604437 Ban KKiller
Ban KKiller's picture


Fri, 03/28/2014 - 17:02 | 4603741 SheepDog-One
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.

Fri, 03/28/2014 - 17:02 | 4603748 alangreedspank
alangreedspank's picture

Can you hear the shit hawks coming, Randy?

Fri, 03/28/2014 - 17:21 | 4603798 dexter_morgan
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. "

Fri, 03/28/2014 - 18:02 | 4603956 NidStyles
NidStyles's picture

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

Fri, 03/28/2014 - 17:01 | 4603745 alangreedspank
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.

Fri, 03/28/2014 - 17:03 | 4603755 NotApplicable
NotApplicable's picture

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

Fri, 03/28/2014 - 17:14 | 4603777 Rainman
Rainman's picture

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

Fri, 03/28/2014 - 18:22 | 4603753 sixsigma cygnus...
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.

Fri, 03/28/2014 - 17:09 | 4603757 Save_America1st
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. 



Fri, 03/28/2014 - 17:10 | 4603766 NaiLib
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...?

Fri, 03/28/2014 - 17:19 | 4603792 NOTaREALmerican
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?)

Fri, 03/28/2014 - 19:12 | 4604213 decon
decon's picture

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

Mike Tyson

Fri, 03/28/2014 - 17:14 | 4603776 Yen Cross
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.

Fri, 03/28/2014 - 17:18 | 4603789 dexter_morgan
dexter_morgan's picture

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

Fri, 03/28/2014 - 17:27 | 4603816 Yen Cross
Yen Cross's picture

  I wonder who downvoted me. That was actual prices and I don't buy my meat or produce at that store. (chain)I should have taken a picture.

 I buy produce and meat poultry, from a small local market.

Fri, 03/28/2014 - 17:30 | 4603828 NOTaREALmerican
NOTaREALmerican's picture

Re: I wonder who downvoted me.

The National Pork Council.    They had a pork ad and you mention chicken.   The ads gone now, nice going...

Fri, 03/28/2014 - 17:38 | 4603850 Yen Cross
Yen Cross's picture

     Ya can't please everyone  NaRm. The Chinese pork industry might be peeved over my "dead pig carcases in rivers" joke the night before last...

Fri, 03/28/2014 - 18:04 | 4603967 NidStyles
NidStyles's picture

They actually get that much for chicken? Where are you? It's $2.99 a lb here and it's locally raised chickens that are sold out of the box store(Safeway). 

Fri, 03/28/2014 - 18:26 | 4604056 Yen Cross
Yen Cross's picture

     Good on ya Ned. You must be in the South. Very nice people.

Fri, 03/28/2014 - 18:30 | 4604069 rosiescenario
rosiescenario's picture

He must have been shopping in Manhattan....and those were 'free range' chickens....

Fri, 03/28/2014 - 19:29 | 4604259 Libertarian777
Libertarian777's picture

$2.99/lb for what? whole chicken? de-boned ,skinned breast meat? or you talking chicken quarters here? 

Fri, 03/28/2014 - 18:17 | 4604018 A Nanny Moose
A Nanny Moose's picture

Sounds like they have a legitimate beef.

Fri, 03/28/2014 - 20:53 | 4604425 Ban KKiller
Ban KKiller's picture

Up for icon.

Fri, 03/28/2014 - 17:31 | 4603829 dexter_morgan
dexter_morgan's picture

Wasn't me - I agree with ya about the crap chains sell.

Fri, 03/28/2014 - 17:35 | 4603840 Ralph Spoilsport
Ralph Spoilsport's picture

What part of the country are you guys paying these prices? Here's this weeks circular with "all natural" boneless skinless chicken breast for $4.79/lb. This is in S. Lancaster County, PA.

Fri, 03/28/2014 - 17:40 | 4603863 Yen Cross
Yen Cross's picture

   West Coast.  Ralph I talked to a buddy on Maui this week, and their meat prices are cheaper! scratching head

Fri, 03/28/2014 - 17:44 | 4603884 Ralph Spoilsport
Ralph Spoilsport's picture

Unreal Yen. This store is the cheapest I know of in a 50 mile radius and like many states, there's no sales tax on food items.

Fri, 03/28/2014 - 18:02 | 4603954 NOTaREALmerican
NOTaREALmerican's picture

Re:  Unreal Yen.

KaLi, is unreal.   You've got to live here to beleive it.     The economy is simulatiously bad, good, fantastics...   incredible amounts of bling amongst all three social classes...   full restuarants...     

Hu knows.   Pathological optimism is definitely working out for most people.

Fri, 03/28/2014 - 18:07 | 4603978 NidStyles
NidStyles's picture

It's called EBT.

Fri, 03/28/2014 - 20:07 | 4604314 Ralph Spoilsport
Ralph Spoilsport's picture

Living and growing up on the East Coast in the 50s & 60s, we huddled around our B&W TVs (packed with vacuum tubes for extra heat!) and watched the Walt Disney show and the Mickey Mouse Club. The oil heat was cranked up to at least 75 degrees (why not at 19 cents/gallon?) because we had been outside and Jack Frost had nipped the fuck out of our noses. We saw all these attractive young people frolicking in the SoCal sun, year round, while we dried out our soggy gloves on the baseboard heating and got nosebleeds from the 20% indoor humidity.

We saw monorails and futuristic cars and everybody was surfin' USA. My older brother had a really bad crush on Annette Funicello, so he dated an Italian girl from Union Street who sorta looked like her. My sister had a crush on Jimmie Dodd who urged us to make the correct moral choices. I thought Jimmie was gay but I kept my big yap shut.

Even the Mexicans were cool as hell as we watched Don Diego de la Vega go undercover as Zorro and open up major cans of whoop-ass on the oppressors of the townfolk living in 'El Pueblo de Nuestra Señora Reina de los Ángeles sobre El Rio Porciuncula' (Pre-historic Los Angeles). And he was so bad-assed, he didn't even need a Walther PPK, just a frickin' sword, man.

We all wanted to go live there for the chicks, the hot rods, the warm weather, surfboarding, the Beach Boys, etc. Then the 60s made us want to go there for the hippie chicks, free love, the Jefferson Airplane, the Dead, unlimited supplies of weed that wasn't all seeds and stems, GTOs, Corvettes, the list goes on Ad Nauseum.

So how did you people manage to let our Paradise turn into a major shit-hole, and the asshole of the Universe?


Fri, 03/28/2014 - 20:50 | 4604418 Ban KKiller
Ban KKiller's picture

Everyone did come out. Then we left in 67. 

Started to get weird in LA 'burbs. Oh, we had riots too as we had a group with nothing to lose who were left behind in the growth. 

Moved to Whidbey Island.

Fri, 03/28/2014 - 21:05 | 4604451 Ralph Spoilsport
Ralph Spoilsport's picture

At least you moved out there and I respect you for that. We thought we had a lot to gain from staying put and working for Uncle DuPont. That worked for a while, until it didn't. (another long essay nobody here wants to read).

Fri, 03/28/2014 - 20:44 | 4604402 Ban KKiller
Ban KKiller's picture


Fri, 03/28/2014 - 17:42 | 4603873 NOTaREALmerican
NOTaREALmerican's picture

I have all my "boneless skinless chicken breast" delivered by Amazon drone:

Boneless Skinless Chicken Breasts: Grocery

Sat, 03/29/2014 - 10:23 | 4605268 fedupwhiteguy
fedupwhiteguy's picture

If the chicken is organic, free-range, anit-bio & hormone free, boneless & skinless, then the price goes up. The price per pound of the bird i just described in the form of skinless, boneless thighs is roughly $7/lb at Kroger in Madison, AL. (last week)

Fri, 03/28/2014 - 20:42 | 4604398 Ban KKiller
Ban KKiller's picture

Ignorant, not stupid types? Ha ha.

Fri, 03/28/2014 - 18:09 | 4603985 SmackDaddy
SmackDaddy's picture

Too many spending other people's money.  Who gives a fuck about the price when you didnt have to work for the $.

Took the family to the Shriner's circus last night.  The crowd was fucking freak show.  Real missing link types.  All obese or retarded.  I was the only one there who looked like he came from work. 

Yet I seemed to be the only one agonizing over prices of all the shit they were hawking to the kids.  I just dont get how someone who, "statistically" has a 93rd percentile household income perceives that I cant afford anything, but all these motherfuckers have no problem buying $10 cotton candy and $15 light up toys.

This is what the USSR must have felt like before the collapse.  I'm working my ass off and look around at other people who dont do shit but seem to get everything they want...

Fri, 03/28/2014 - 18:51 | 4604162 Anusocracy
Anusocracy's picture

It's called egalitarianism.

The philosophy and practice of making welfare recipients equal to productive workers.

Fri, 03/28/2014 - 21:08 | 4604462 Ralph Spoilsport
Ralph Spoilsport's picture

Do you realize how close you ventured to pure evil going to a Shriner's Circus?

Fri, 03/28/2014 - 17:16 | 4603784 NOTaREALmerican
NOTaREALmerican's picture

Deflation would be the end of the "Keynesian" religion.

And NOBODY stops believing in their Imaginary Friend without a huge fight!

Fri, 03/28/2014 - 18:29 | 4604065 Yen Cross
Yen Cross's picture

   Good Lord NOTaREALmerican  you're full of color tonight!

  Did you get laid?

Fri, 03/28/2014 - 17:20 | 4603796 Seasmoke
Seasmoke's picture

Who is inflation good for ? And who is deflation good for ?? That is your answer.

Fri, 03/28/2014 - 17:23 | 4603804 Haus-Targaryen
Haus-Targaryen's picture

Lol deflation. 


I'm properly hedged. Bring it on. 

Fri, 03/28/2014 - 17:24 | 4603808 dexter_morgan
dexter_morgan's picture

We're in the eye of a shiticane here!

Fri, 03/28/2014 - 17:28 | 4603821 ToNYC
ToNYC's picture

Deflation is the blessed consequence of Intellectual Effort disrupting the old practices still making bank. More for less, the new way. Pay as you play, not while you're yoked. Who is your daddy?

Fri, 03/28/2014 - 17:34 | 4603841 Mr Giggles
Mr Giggles's picture

You cant sell this future at any price, market my ass. gatting shorter & shorter. like the never never fly, smaller & smaller circles until it dissapears up its own a**.

Fri, 03/28/2014 - 17:40 | 4603862 Mr Giggles
Mr Giggles's picture

the Guess what its the military guyes buying gold and silver. good for gov.

Fri, 03/28/2014 - 17:41 | 4603867 BullyBearish
BullyBearish's picture

If the American people owned the Federal Reserve, it might be more accountable to them...or not.  But once you realize that it is owned by other banks and foreign interests it is not hard to understand what it does hurts the American people and enriches its owners.  It has NEVER disclosed any ownership interests except the broad ownership by member banks and foreign entities.

Fri, 03/28/2014 - 19:33 | 4604271 gonetogalt
gonetogalt's picture

Cue Francis Sawyer...Francis???  This site getting sold and transplanted to euro-land sure cut out a great poster and ranter..



Sat, 03/29/2014 - 10:36 | 4605290 fedupwhiteguy
fedupwhiteguy's picture

Not just him! There's a handful of peeeps that I used to enjoy reading their insights on certain topics. They did some  testing of the censorship boundaries after the rasssssist policy was posted, and one by one they vanished into the night. so sad......:(

Fri, 03/28/2014 - 17:44 | 4603882 B2u
B2u's picture

But...they say they want to PROTECT us when they really just want to  CONTROL us.

Fri, 03/28/2014 - 20:52 | 4603883 evernewecon
evernewecon's picture



A re-do of the pre-'29 path of 

juicing returns by lending to

unqualified buyers, but 2d time

round selling the loans, and 

insuring and then also shorting 

them, might have a cousin in an 

industry controller lending to his 

competitors to then flood his market 

and then calling the loans.


What's possibly changed lately, I 

think, is where category killers

like Home Depot might've quickly

gobbled players like National 

Lumber, a few decades ago,

somewhere between Gen's X/Y,

and certainly by Z, outright 

privatization of major sectors

with full monopolistic architectures

has emerged, with complainers

accused of being statists or

interferers with free commerce.

In fact, though,

inappropriate privatization has 

nothing to do with free enterprise

and generally results from the 

trashing of democracy by privatized

(puppets') policy.   Those types

sell to their constituents'



Obviously, the mortgage/interest

rate market fits that bill.


Keynesians would say falling

GNP led to a drop in money supply,

vs. the monetarists' drop in money

supply led to a fall in GNP.


The present experience is 

monetary and bankers'.


If one thinks carrying the banks'

dead weight is yet a hanging 

Ponzi scheme, he has the choice

of investing the way the banks 

want him to invest, though knowing

the banks plan to invest in the 

adversity created by exaggerated

cycles, and thus he has to accept

he's playing musical chairs.


Or, he can wait for the folly to 

play out.  If the West's central

banks are hammering gold, then 

especially if he actually SOLD the

banks' mortgage bubble, then he's

getting ripped off lots of time 

AND money.  Waiting for the folly

to play out comes with waking up 

every morning to full safe money

exposure to real negative returns.


Millions of Americans daily do 

deals more intricate than this

idea of selling mortgages to 

unqualified buyers to over-tranche

sell to short.


The basis of the whole trashing

of our markets is actually a 

remarkably petty one.



Fri, 03/28/2014 - 17:47 | 4603899 Atomizer
Atomizer's picture

Subsidizing the economy through the use of free money didn't seem to work out 

,as planned. 

Fri, 03/28/2014 - 17:57 | 4603939 NOTaREALmerican
NOTaREALmerican's picture

Re:  as planned. 

Not for the peasants.   Worked out pretty good for the top 10%.  

Fri, 03/28/2014 - 17:58 | 4603940 ejmoosa
ejmoosa's picture

It sure as hell ain't free.

The price to be paid will be devastating


Fri, 03/28/2014 - 17:47 | 4603900 Mr Giggles
Mr Giggles's picture

Inflation, Deflation, Obfiscation.

Fri, 03/28/2014 - 18:31 | 4604072 Yen Cross
Yen Cross's picture

  Inflation<deflation> confiscation<

Fri, 03/28/2014 - 20:54 | 4604427 bobert
bobert's picture

Deflation, inflation, confiscation!

Fri, 03/28/2014 - 17:50 | 4603918 Mr Giggles
Mr Giggles's picture

I offer $ 6000.00 for your house BITZ.

Fri, 03/28/2014 - 18:04 | 4603964 Herdee
Herdee's picture

The Fed has a lot of staying power,just ask Japan.The U.S. can drag this slowness out a very long time.Still a lot of trillions to print.Just buy gold and silver with the shit to give yourself an insurance policy.Gold and Silver are real money,the U.S. Constitution says so.I'm not even American and myself and most others wordwide are hoping that Americans would start buying big like the Chinese.Save in gold and silver.

Fri, 03/28/2014 - 18:07 | 4603979 boeing747
boeing747's picture

Inflation not only hurt savers also hurt those bought fixed life insurance. Image 30 years ago what you can buy with $100k and now. Inflation push prudent savers become mindless risk takers.


Fri, 03/28/2014 - 20:56 | 4604434 bobert
bobert's picture

Buy VUL in this case.

Fri, 03/28/2014 - 18:17 | 4604016 Mr Giggles
Mr Giggles's picture

Im short your house 2000.

Fri, 03/28/2014 - 18:23 | 4604040 Notsobadwlad
Notsobadwlad's picture

More and more people are dependent on the productive value adding work of fewer and fewer people and the problem is getting worse, not better with automation. 

In the aggregate, the only ways to pay the interest on debt is either by creating more debt and piling up more interest OR by paying for it with one's labour. It is clear that enemy is interest and those who hold a strangle-hold on the world through their parasitic creation of debt-money and the skimming of labour and valuable assets. One can make the repayment of debt interest less onerous by decreasing the interest rate ... but this also fuels and locks the world into systemic misallocation of capital.

And now, in the aggregate it is clear that the problem is worse than it was back in 2008. There is more debt. Interest rates cannot go lower and there is less productive labor to pay back the interest and balance the system.

The financial system needs and enema to flush out the misallocated capital and destructive concentration of money power. If too  big to fail banks fail, are broken up and power is returned to savers and productive labour, all the better.

Fri, 03/28/2014 - 19:56 | 4604175 socalbeach
socalbeach's picture

Another way to pay interest on debt is QE, which effectively retires government debt (most of the interest the Treasury pays to the Fed gets returned. And the Fed creates from nothing the money (reserves) to buy bonds).

Fri, 03/28/2014 - 20:09 | 4604336 the grateful un...
the grateful unemployed's picture
Non-Recourse Finance A loan secured by the revenue of the project the loan intends to fund, and nothing else. That is, non-recourse finance does not allow the bank or other lending institution access to the borrower's other assets in the event of default. This is a relatively high-risk form of financing; projects that utilize non-recourse finance generally have uncertain revenue streams and long loan periods.


Fri, 03/28/2014 - 18:28 | 4604062 Mr Giggles
Mr Giggles's picture

If it is gubmint mnny they must pass it down to me IMMEDIATLY. To be a public serpent and do otherwise would cause constanati9on.

Fri, 03/28/2014 - 18:30 | 4604071 Waterfallsparkles
Waterfallsparkles's picture

Yep.  Their debts are lower.  Our prices are higher.  From Food, to Gas to Heating oil.  Unfortunatly they do not even count those items in their inflation numbers.  We are losing.

Fri, 03/28/2014 - 18:41 | 4604122 debtor of last ...
debtor of last resort's picture

It's too late for deflation. Since 1971.

Fri, 03/28/2014 - 18:44 | 4604135 Mr Giggles
Mr Giggles's picture

No it is deflation there is a hole in the money.

Fri, 03/28/2014 - 20:33 | 4604382 Ban KKiller
Ban KKiller's picture

But the hole is plugged by Yellen and reinflated with her flatulence?

Sorry for the image. 

Fri, 03/28/2014 - 18:48 | 4604154 Mr Giggles
Mr Giggles's picture

Scrabbling for QE/Rehipothication (fraud will work untill no bonner ses).

Fri, 03/28/2014 - 18:51 | 4604161 q99x2
q99x2's picture

World will be in flames by the fall.

Fri, 03/28/2014 - 18:54 | 4604167 Anusocracy
Anusocracy's picture

That's just the color of the leaves.

Ignore it.

Fri, 03/28/2014 - 18:55 | 4604169 nmewn
nmewn's picture

Just in time for winter warmth ;-)

Fri, 03/28/2014 - 18:56 | 4604176 bugs_
bugs_'s picture

Here in the Deflationists Lounge we wonder which enemy the average person considers worse - their deflating wages or their inflating inelastic demand goods prices.

Fri, 03/28/2014 - 19:21 | 4604234 Yen Cross
Yen Cross's picture

  I'l bet the fixed income(insurance industry) is sweating  BRiCs right about now.

   They're probably looking for some whack job Zero Hedge ideas?

    Joe Isuzu, Sham Wow guy, ect...     </sarc>

Fri, 03/28/2014 - 19:25 | 4604248 Mr Giggles
Mr Giggles's picture



Fri, 03/28/2014 - 20:47 | 4604412 Billy Shears
Billy Shears's picture

The type of deflation that the FED's policy excesses creates is of the profoundly negative and catastrophic variety due to massive mal-investment caused by artificially low interest rates, etc, ad nauseum. However, the type of deflation that is a by-product of free and unimpaired markets is an organic result of savings, investment and productivity, this is beneficial to consumers and society as a whole, a mechanism that has been completely undermined, if not destroyed, by the FED's policies in particular and Keynesian monetary theory in general.

Fri, 03/28/2014 - 21:09 | 4604464 Ban KKiller
Ban KKiller's picture

Reading bios about James Madison. Revolutionary at 23. 

When do we start? Then and now the issues are the same....with twists of some logic remaining. Voting is not one of the remaining options, we are too corrupted for that, as evidenced. 

MASS demonstration worked then and now. 

OWS scared the shit out of TPTB like nothing else has, nothing! 

The mass of pissed off people is only growing. See you in the streets or are you a Tory?

Like this financial turdbowl? Not a Madison quote. 

Fri, 03/28/2014 - 22:33 | 4604674 JR
JR's picture

The silent destruction of savers by the international owners of the Federal Reserve, IMO, is a broad step toward the establishment of socialism in the United States through the deliberate destruction of the bourgeoisie, i.e., the middle and upper-middle classes. This strike against savers has the same purpose as ObamaCare, which is not healthcare at all, but universal control.

In Marx’s theories of conflict and change between two groups, the bourgeoisie (propertied classes) and the proletariat (unpropertied), the bourgeoisie inevitably would be destroyed.

Irving Fisher perhaps would be saddened to know that the idea of forced equality he once thought dead in America is in full play by a Federal Reserve elite whose exposed goal is to attain total global control. As that is the current case, one might say that Bernanke, Greenspan and Yellen have trumped Irving Fisher.

Also unheeded today is Henry Hazlitt who outlined how it is capitalist production and not government programs and central planning that enriches a nation. Wrote Hazlitt in 1973 in The Conquest of Poverty. :

Equality Once for All

“A socialist proposal that used to be aired frequently a generation or two ago but is not much heard now (when the emphasis is on trying to legislate permanent equalization of income) is that the wealth of the country ought to be distributed equally ‘once for all,’ so as to give everybody an even start. But Irving Fisher pointed out in answer that this equality could not long endure.

“It is not merely that everybody would continue to earn different incomes as the result of difference in ability, industry, and luck, but difference in thrift alone would soon reestablish inequality. Society would still be divided into ‘spenders’ and ‘savers.’ One man would quickly go into debt to spend his money on luxuries and immediate pleasures; another would save and invest present income for the sake of future income.

‘It requires only a very small degree of saving or spending to lead to comparative wealth or poverty, even in one generation.’

“’Even Communists have now earned that wealth and income cannot be created by merely alluring slogans and utopian dreams. As no less a figure than Leonid I. Brezhnev, First Secretary of the Soviet Communist Party, recently put it at a Party Congress in Moscow, “One can only distribute and consume what has been produced; this is an elementary truth.”’7

“What the Communists have still to learn, however, is that the institution of capitalism, of private property and free markets, tends to maximize production, while economic dictatorship and forced redistribution only discourage, reduce, and disrupt it.”

7. The New York Times, May 29, 1971

“To blame ‘excessive saving’ for the business decline would be like blaming a fall in the price of apples not on a bumper crop but on the people who refuse to pay more for apples.” – Henry Hazlitt

“Meanwhile,” as has been said “the passbook saver has his wealth stolen by making his $ worth less, while the banker laughs all the way to…..the bank.”

Fri, 03/28/2014 - 23:12 | 4604771 Aristarchus of Samos
Aristarchus of Samos's picture

Neal, Maria, Larry, ...Rick?  Welcome to FBN.  Market share going to explode...

Probably Mark if he were still with us, RIP, and bless him.

Sat, 03/29/2014 - 01:44 | 4604962 kurt
kurt's picture

Pawn shops

Payday Loans

Rent to Own

Cash for Gold

$800/month for healthcare and MORE if you use it!

How to extract cash from a poorer and poorer victim class

I hope you assholes are proud of yourselves. You make me sick.

Sat, 03/29/2014 - 02:58 | 4605008 pcrs
pcrs's picture

Santelli is reading rebel literature. Soon he will get to Rothbury and it will all be over.

Sat, 03/29/2014 - 08:55 | 4605185 Pee Wee
Pee Wee's picture

Santelli can rant, but he's a fool in la-la land just like the rest.

The entire financilal system is a farse.  There is no functional pricing determination left and arguing about the prettiest horse at the glue factory ain't the way out.

Sorry Rick -  neo Fascism owns you too.

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