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Santelli Slams The Fed As "Weak-Data"-Dependent; Lacy Hunt Warns "We're Not On The Right Path"

Tyler Durden's picture




 

Confirming Rick Santelli's perspective on the unending 'easiness' of the Fed, Hoisington Investment Management's Lacy Hunt states unequivocally that "The Fed will not raise rates in 2015," and warns that the US economy and monetary policy "are not on the right path," in this excellent brief interview. Santelli slams the Fed's asymmetric policy, coining a new phrase that Yellen is only "weak-data"-dependent and Hunt confirms that "by its past policy errors, the Fed has put itself out of business," enabling massive build ups of debt, warning that "debt is an increase in current spending in lieu of future spending," and confirms the truth that rather than deleveraging, "the world is significantly more leveraged now than in 2008."

 

Well worth the price of admission... 150 seconds of reality..."The Fed has spawned this 'buy now, pay later' scheme of the American consumer... but there comes a point when the 'pay later' overwhelms the 'buy now'... and when that happens monetary policy is basically ineffective"

 

 

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Wed, 10/29/2014 - 18:54 | 5391662 remain calm
remain calm's picture

In God we trust. I trust Yellen.

Wed, 10/29/2014 - 19:04 | 5391695 Stained Class
Stained Class's picture

On the back of a $1 Silver Certificate you find In God We Trust. 

God won't give me an ounce of silver today. Who can I sue, God? 

Wed, 10/29/2014 - 19:11 | 5391711 kliguy38
kliguy38's picture

forget silver and gold and buy stawks......or bury a box of FRNs in the back yard for 20 years......it'll all be taken care of...granny has your muppet back

Wed, 10/29/2014 - 19:27 | 5391738 Stained Class
Stained Class's picture

Dude, really? There's 99% of us vs. 1% of them, do some 8th grade math...

We don't need to take "evasive action". Know what I mean?

Wed, 10/29/2014 - 19:31 | 5391763 SilverIsKing
SilverIsKing's picture

What do you mean? I dropped out of school after 7th grade.

Wed, 10/29/2014 - 20:41 | 5391936 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

you musta dropped out in 2nd grade, cause its MAYBE 3rd grade math.

Wed, 10/29/2014 - 22:10 | 5392186 bunnyswanson
bunnyswanson's picture

Owning media outlets was to sway public opinion, and take attention off the real story.  Now, we are at the final act.  The word is out.  Rumors of 20 million dollar gifts to silence politicians is in the air (in comment section on VToday, Snowden has given docs to Putin who will use them strategically timed released to make a point, the comment stated), and social media has created a new cause, portraying the information once secret (bankers and their dastardly ways, publicity stunts called crime scenes, etc) and the wave has been caught by all generations like wildfire from the NWO, 911 truth wave

We can only hope.

When hundreds of millions of people despise you, walking down the sidewalk becomes impossible, some make it a hobby to find out where the "thieving murdering bastards who did this to us" lives.  No one will be safe but these people will have targets on their backs and whoever takes them down will be a hero in the history books.

Wed, 10/29/2014 - 19:40 | 5391791 RaceToTheBottom
RaceToTheBottom's picture

I would show them your Common Core ribbons.....

Wed, 10/29/2014 - 19:13 | 5391696 Squid Viscous
Squid Viscous's picture

you're right - take off her wig and she looks just like george burns (a.k.a. nathan birnbaum) in 'oh god'...both khazar to the core, amazing coincidence

Wed, 10/29/2014 - 18:55 | 5391669 SillySalesmanQu...
SillySalesmanQuestion's picture

"Don't worry, we have everything under control"

Wed, 10/29/2014 - 19:30 | 5391761 TeethVillage88s
TeethVillage88s's picture

Except Mortgages Outstanding & Consumer Credit Outstanding Rates (Late Payments) are still twice what they were prior to the 2008 Financial Crisis.

- Yeah, and growing debt looks exponential. I suppose if we didn't have a Demographics problem the debt growth might look good to the FED.

- Guess that is why they keep the Borders open... and keep talking about Amnesty: To attract new consumers and earners... even without Amnesty they need the people to make the federal budget growth look feasible.

- And of course the Federal Budget has to keep growing across the board to prevent certain budget lines from appearing to grow faster than all the others...

Liabilities, Debt, income inequality grow, Manufacturing was the best growth and wealth sector-BUT They Decapitalized US Manufacturing... AND I guess they couldn't think of any other Job Sectors for Middle Class Growth and Wealth Creation. Federal Reserve is not an Idea Generator.

- FED is just there to keep the people from getting out the Pitchforks, and rioting in Washington DC & Wall Street.

But FED usually likes to pretend they have no interest or mission toward Jobs Creation or Employment. Still it is US Congress, GAO, CBO, DOL, FTC, SEC, FINRA,... and the Free Press, MSM's Job to Find Solutions Other than Global war on Terrorism & Suspending of Individual Rights.

- How about some Integrity in Government Statistics?? How about breaking down GDP in a way that Main Street can use when they vote against Jeb Bush?? How about Truth about Inflation in Federal Job Compensation & Government Contractor Compensation? And the Growth of Government Contracting??

- What, are we all going to work for the Federal Government someday??

Wed, 10/29/2014 - 18:58 | 5391679 whoopsing
whoopsing's picture

" We are very ill prepared for what te future is going to bring "... Could not have said it better myself

Wed, 10/29/2014 - 21:19 | 5392022 disabledvet
disabledvet's picture

You cannot get a deflation in the USA so long as oil production continues to boom "in the heartland." Prices will naturally inflate as they have for over two hundred years...if not longer actually...as credit is extended from East to West and goods travel from East to West to meet booming demand.

Those are very valuable dollars returning that are then being recycled into in this case a huge boom in outright production in even more energy production. So sure...on the one hand you get a wicked shot of inflation and then a massive inversion of the yield curve that wipes out Wall Street (2006-2008)...but on the other side of the coin you get actual markets and the hard data to drive them. (2009-present) In this case the biggest energy boom in world history.

I cannot explain...try as I have...why this energy boom hasn't translated into a stupendous recovery...but I can say for certain that this is "hot" or "inflated monies" not caused by the Fed or even the Federal Government but by a "natural rate of inflation" caused by the peculiar nature of energy booms...namely that they drive out bad money. Great news for banking and finance obviously.

It is odd beyond belief though that the USA can be sitting on such a massive hoard of cash, debt and inflation and yet get little to no return on said money! Wall Street has been the overwhelming beneficiary obviously.

I will say I am not long treasuries because we're looking at the 37-38 Great Depression double dip which appears to me the point of this missive...namely "we're in a liquidity trap." I don't see that at all...never did...was long equities from 2008-present in spite of the collapse...but I am long treasuries because equities have redefined risk beyond my ability to comprehend it...and amazingly equities continueto do so I might add.

I have no doubt if an industrial boom happened inside the USA/North America that you really would see a huge boom in GDP...but as Bob Marley "wailed" so far appears we are just "Waiting in Vain." I do see a lot of Government types wasting my friggin time. Just today I was watching a construction project using liberal use of concrete blocks...something I find outright ridiculous in this day and age...and something that can only come from Government policies. Not that I'm expecting the building to collapse as a result...it's just that I used to do that as a kid and what would tabs a line of concrete trucks and some good planning a day to complete will take these guys all fall going into winter.

Anywho...c'est la vie. Government itself will never see cheap money like this again for a long time. I remain very bullish on NASA (despite the recent setback) and on the U.S. Navy as well.

I do think something horrible beyond belief is about to transpire in West
Africa. I think our natural predilection to follow our heart in this matter as enobling and "emotionally correct" as that clearly is...is in fact the absolutely wrong thing to do. "Admiral...when approaching a ship without whom communications have been established regulations require us to raise shields." This is done to protect them as much as us. I am not saying this is true but for all we know these folks are being used as pawns in an attack...unwilling or otherwise.

Wed, 10/29/2014 - 18:58 | 5391680 cherry picker
cherry picker's picture

When the shockwaves hit, in George W's words, a depression worse than the great depression.

The only way out is massive debt forgiveness, and that will hurt too.

There will be a lot of people losing McMansions, but there won't be anyone to buy them.

EBT cardholders will go to war.  These voters will find out the hard way when .gov throws them into FEMA camps.  Don't think it will happen?  They never thought WW1 and WW2 would happen either.

Wed, 10/29/2014 - 18:59 | 5391683 himaroid
himaroid's picture

Two of my heroes.

Wed, 10/29/2014 - 21:55 | 5392137 HardlyZero
HardlyZero's picture

Santelli and Hunt show demographics are probably why QEx is not being contemplated.

Paying for Soc.Sec. and Medicare will add trillions more to the debt so they have to save their ammo for 10 or 20 years down the line going forward.

Demographics smacks Japan around every day.

Jubilee or whatever happens will still need to pay for the healthcare of the aging US population, and start defending the borders.

Wed, 10/29/2014 - 19:00 | 5391687 yogibear
yogibear's picture

It only gets more interesting as the Fed loses control. 

In a matter of a couple of months a $18 trillion deficit will be knocking on the door. 

Onward to $20 trillion maybe quicker than anyone is anticipating. 

Wed, 10/29/2014 - 19:19 | 5391730 silverer
silverer's picture

Yes, the mistakes made recently will change the projections of solvency made five and six years ago. The end of the checks come sooner than everyone thought. Insolvency approaches more rapidly as the economy sinks. We will not 'grow our way out'. More like 'grind ourselves down'.

Wed, 10/29/2014 - 19:53 | 5391801 ebworthen
ebworthen's picture

$17 Trillion doesn't seem to worry them, so why not $32 Trillion?

It is already beyond un-payable insanity, so why not ludicrous insanity?

Wed, 10/29/2014 - 19:01 | 5391689 Stained Class
Stained Class's picture

My middle-class boomerz are finding out what "Pay Later" means, and we don't like it.

Wed, 10/29/2014 - 19:01 | 5391691 WTFUD
WTFUD's picture

Same pattern of ' late in the day saints ' trying to skip a beheading.
Not even gonna listen to this 'spellbinding' recording.

Wed, 10/29/2014 - 19:15 | 5391708 Chuck Knoblauch
Chuck Knoblauch's picture

Same bat time.

Same bat channel.

Na na na na .................. bat-shit.

Wed, 10/29/2014 - 19:13 | 5391717 lasvegaspersona
lasvegaspersona's picture

A half trillion deficit????

OK as far as the DC approach to looking at the budget (not that there is an actual budget) that may be. But the government's borrowing is dictated by the need for spendable funds. As Social Security redeems it's notes those will have to be paid out. Real money will be needed for that....not just imaginary DC stuff.

It will be a cash flow problem that forces the USG to borrow....and they will have to borrow far more than a half trillion...and the amount will increase with each passing year.

When the rest of the world has had enough we will find ourselves with a useless currency.

Wed, 10/29/2014 - 19:25 | 5391746 RSDallas
RSDallas's picture

I can't get this video to play anwhere on the net????  

Wed, 10/29/2014 - 19:28 | 5391754 pc_babe
pc_babe's picture

Sorry ... the FED doesnt create debt.  Thats the reponsibility of Congress and a fuktard Prez who are unable to limit spending or balance a budget 

Wed, 10/29/2014 - 19:59 | 5391823 r00t61
r00t61's picture

In the modern monetary system, which uses debt-based money and fractional-reserve lending, a balanced budget is mathematically impossible. 

The debt ceiling limit kabuki theater that we are occasionally subjected to is an artifact of a time when the US was still on a gold standard of some kind.

http://www.youtube.com/watch?v=iFDe5kUUyT0

Wed, 10/29/2014 - 23:38 | 5392388 bunnyswanson
bunnyswanson's picture

or raise taxes.  Who gets elected is the candidate who will not raise taxes.  Read my lips.  Starve the beast (their words, not mine).  http://en.wikipedia.org/wiki/Starve_the_beast  It is my belief this is all by design, events all connected in an orchestrated silent coup from within the govt. Media ownership, as I keep saying, made this possible.  Paul Revere was duct tapped.

Wed, 10/29/2014 - 19:51 | 5391755 Squid Viscous
Squid Viscous's picture

Let's vote : who needs to be gassed and/or hung first:

1) Greedspan

2) Bernanke

3) Yellen

4) Bank-fiend/Dimon (2 for 1)

5) Krugman

6) Cramer/Kudlow/Lies-man ... (tempting 3 for 1, no?)

7) the field- inlcudes any "advisors" to Clinton/ Bush/ or Obozo

Wed, 10/29/2014 - 20:29 | 5391889 WhackoWarner
WhackoWarner's picture

Kindly refer your question back to the divorce pleading filed and made public earlier today.

The wolves prefer to travel in packs and as such are comforted by group gropes aided by "fuel".

 

So no need to vote here. Make them all warm and cozy together.  They can pat eachother on the back and hug and kiss and tell eachother how important and smart they all are.....all the way to the end.

 

I believe in "community" based solutions.

 

But I beg the organizers to please inclued little bum boy Canadian PM Harper. Nobody need burn without their fave poodle pet.  He gives lap dogs a bad rep. 

Wed, 10/29/2014 - 19:36 | 5391758 Stained Class
Stained Class's picture

There's 2 Lacy Hunts...is this the guy from the old EFHutton?

Will the real Lacy Hunt please stand up! A smart man, whichever he is...

Wed, 10/29/2014 - 19:44 | 5391764 gadzooks
gadzooks's picture

Stop heeding to this like your gonna save this,by doing the same thing, rein it in 

on international buraucratic fronts, take the corrections, and stop thinking you can save all the worlds freeloaders ,by throwing money everywhere, Its the global deconstruct,disfonction,and traditionnal elitist corrupt sceams that are mostly to blame, we have sacrificed enough, it someone else`s turn!

Wed, 10/29/2014 - 20:31 | 5391908 WhackoWarner
WhackoWarner's picture

 AAA  HUH?  Cheers bud.  When you get off the martini high tell me what you mean.

Wed, 10/29/2014 - 19:32 | 5391766 FreeNewEnergy
FreeNewEnergy's picture

Yeah, me too. CNBC videos never work for me on ZH.

Probably a blessing in disguise.

But, Janet Yellen has my back. I sure hope she doesn't scratch.

Wed, 10/29/2014 - 19:31 | 5391767 buzzsaw99
buzzsaw99's picture

data dependent is a laughable idea. they set policy then concoct the data to support their actions.

Wed, 10/29/2014 - 19:45 | 5391788 Stained Class
Stained Class's picture

They set their own "inflation deflator" pause, read again, INFLATION DEFLATOR. 

Out loud, for the class... INFLATION DEFLATOR! An oxymoron, which actually alters the Dollar Amount of Production. (ie, its not $17 Trillion in "today's" dollarz....its only $12 - $14 Trillion in whatever dollars you have in your hand).

Wed, 10/29/2014 - 20:10 | 5391810 Squid Viscous
Squid Viscous's picture

Orwell predicted double-speak, ...but he didn't foresee the absolute genius of saying the opposite words simlutaneously then, you figure it out, sheeples...if you're confused that was the plan, if you pick the wrong answer, well better luck next time

Wed, 10/29/2014 - 20:34 | 5391921 WhackoWarner
WhackoWarner's picture

I have graph paper, a ruler , a pencil and an eraser. I also have a calculator that works on solar. Also have a protactor and a magnifying lens.  I have 50 different coloured pencils.   I like to draw and can stay inside the lines.   Can I run the FED? 

Wed, 10/29/2014 - 19:42 | 5391793 FieldingMellish
FieldingMellish's picture

The bottom for gold is likely in... I give you Gold's Obituary.

Thu, 10/30/2014 - 02:44 | 5392621 pgroup
pgroup's picture

Well, I guess I should start advertising junk gold hauling for free. I'll haul away your junk car, your junk boat, your junk gold, or any of your junk ANSOLUTELY FREE!

What a deal.

Wed, 10/29/2014 - 20:15 | 5391858 thetruthhurts
thetruthhurts's picture

"We are very ill prepared for what the future is going to bring".....

 

The government is prepared....  they are:

buying up all the bullets

passing gun control laws

Militarizing the police

restricting individual rights

collecting ALL data streams over then airways and internet

 

Wed, 10/29/2014 - 20:28 | 5391882 Kirk2NCC1701
Kirk2NCC1701's picture

OT, but some very interesting 3D Printing info... HP is re-entering the 3D Printing business with its own disruptive technology, after having developed it over 10 years ago, and abandoned it.

According to CNBC [gasp!], they're coming out with a plan to take over that market, and their printer is 10X faster than the small-fry competition.  It prints, using Ceramics, Metal, and "Other Materials".

According to CNBC, the current 3D printing market is ~ 4 Billion, with projections for $18 Billion next year.  They think that HP can use its corporate muscle, its channels and leverage its IP and tech, to dominate this market.

More news here and here.  The White Paper on the printer is here.  Also... They're changing the Human-Computer interface with SPROUT., to create a semi-Immersive, Real-Time Interactive Reality for global collaboration on products.

p.s. Knowing HP quite well, and having criticized them for all their self-inflicted wounds (given away or shelved killer tech: 3D projection, smart touch-screens, HP Gesture Language, HP iphone before there was an iPHone, etc, etc), I'm glad that they are coming out with something exciting.  They had to go through HOW many CEOs to get their act together?  Like I always said:  HP's problems started and ended in their Board Room.  That's where the real rot was.  Hopefully that place has been gutted and renovated.

pps. Gun libertarians who'd like to print their own... imagine the possibilities NOW!  Guns, whose properties of texture and color vary smoothly along its surface.  Cool!

Wed, 10/29/2014 - 21:27 | 5392054 disabledvet
disabledvet's picture

Will they come with the unlimited bullets option as well?

Wed, 10/29/2014 - 22:01 | 5392155 HardlyZero
HardlyZero's picture

In a few years...

Computers programming Computers

Robots printing Robots

Robots will be making iPhones and Galaxies.

Then they will be programmed to gather necessary natural resources.

Then one will get the specs for the latest ammo/guns.

Skynet or Matrix.

Wed, 10/29/2014 - 21:03 | 5391980 SocialismIsCancer
SocialismIsCancer's picture

This FED, lead by hyper-liberal academics who are ideologically oppsed to free-market interest rates, will NEVER raise the FFR, so the carry trades & leverage will continue unabated.

Wed, 10/29/2014 - 21:58 | 5392143 homebody
homebody's picture

The FED has cut the flow of easy money so now how do they defend the low interest rate - any tools left?

Wed, 10/29/2014 - 22:56 | 5392284 SocialismIsCancer
SocialismIsCancer's picture

The FED has NOT cut the flow of easy money - they will keep the FED Funds RAte at 0.25% and continue buying treasuries & MBS with the proceeds from maturing bonds.

The insanity continues.

Wed, 10/29/2014 - 23:54 | 5392385 homebody
homebody's picture

There may not be buyers for the maturing bonds at the prevailing rates

 

The US is sinking due the amount of unfunded liabilities and overwhelming debt - the bonds may not be the cleanest dirty shirt in the clothes hamper for much longer.

Thu, 10/30/2014 - 04:33 | 5392675 SocialismIsCancer
SocialismIsCancer's picture

AS long as central banks anywhere allow borrowing at zero, there will ALWAYS be buyers for USA treasuries because the net interest profit is a certainty.

Wed, 10/29/2014 - 22:39 | 5392246 robnume
robnume's picture

ABOLISH THE FERAL RESERVE SYSTEM!!! ABOLISH FRACTIONAL RESERVE BANKING! LET 'EM ALL FAIL, NO MOAR BAILOUTS!

Thu, 10/30/2014 - 00:02 | 5392428 AdvancingTime
AdvancingTime's picture

While they claim otherwise, in many ways Bernanke and the Fed have put America on a path that mirrors the same unsuccessful path taken by Japan. A path that avoids real reform and bails out the very people that caused many of our problems. Bernanke has upped the ante by setting the bailout and money printing machines on high and flooding America and the world with QE.  

By selling other central bankers on this solution the Fed has taken the lead in an experiment that is losing traction across the world Real momentum seems to ebb shortly after each new wave of stimulus and another fix seems to constantly be needed. More on how this policy is doomed to fail in the article below. 

http://brucewilds.blogspot.com/2013/11/we-are-on-path-to-lost-decades.html

Do NOT follow this link or you will be banned from the site!