"It's Just An Illusion" Santelli & Schiff Slam Fed-Watchers' "Blind-Eye" To Yellen's "Phony Recovery"

Tyler Durden's picture

"This economy would have to improve dramatically to get to mediocre," warns Schiff, otherwise, as Santelli rages they would be hiking rates and talking confidently, adding that either Fed-watchers are "going along with it to earn a paycheck"  - just as they did in 2008 - or "they are ignorant."

"The Fed can't raise rates because they don't want to poke too many holes in this bubble. This recovery was never real, it's phony, it's just another Federal Reserve bubble just like the one that popped in 2008, only this one is even bigger.


What we really should be talking about is not when The Fed will hike rates, but when they wll admit the economy is a lot weaker than they expected and when the next rate cut and when they will launch QE4?"

After just over 3 minutes of painful reality checks, Schiff sums up it all up perfectly, reflecting on the Sanders-Trump phenomena, "behind all those phony jobs numbers are a lot of angry Americans as everyone pretends this is a legitimate recovery."

"Why are so many Americans so upset if the 5% unemployment rate is correct? It's not!!"


And opining on the collapse of practically every other data point aside from "jobs", Santelli sarcastically screams "yeah but they are all out of the norms and should be ignored..." adding that it's "shoot the messenger" on any data item or story that does not fit The Fed's narrative...

Enjoy the following 200 seconds of truth - they don't come around too often nowadays...

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brushhog's picture

Gotta love Santelli and Schiff, possibly the only two guys you'll ever see on mainstream media who actually tell the truth. I disagree with one sentiment "The economy would have to improve dramatically to get to mediocre"...this isnt an economy! Its an experiment. Calling this an economy is like calling biosphereII a natural environment.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) brushhog Apr 9, 2016 3:50 PM

Schiff is normally correct.  He's been saying to stay in the market for years because he knows that the Fed will keep propping it up.  Regarding gold/silver taking off: He hasn't been able to predict that very well.  He has been saying that it will go to the moon for a while now.

He knows his stuff regarding economics.  But the Fed keeps jumping in and screwing up market economics.

Expat79's picture

"Schiff is normally correct" bro are you serious? Go back and look at everything that guy said since 2009. He's been an absolute disaster on everything, from gold, to the dollar, to his mutual funds. Seriously, go and look up all of the Euro Pacific Capital mutual funds, and just compare their performance to Dow. Peter Schiff is an absolute disaster. That's why he has resorted to banner ads, people are waking up to the guy.


LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Expat79 Apr 9, 2016 4:18 PM

Bro he has said to stay in the market.  And like I said, he has been wrong regarding gold since 2009 but not long term (before then).  Earth and the economy didn't start in 2009.  He was one of the few who called that crash.  Don't get me wrong - I'm starting to tire of his recent (past 7 years) "gold is gonna take off" stance.  At some point it will.  But it's been seven years...


DownWithYogaPants's picture

Maxed Out Mama finally has a new entry in her blog and it's calling: RECESSION.  Well written.


chicaboomboom's picture
chicaboomboom (not verified) DownWithYogaPants Apr 9, 2016 4:42 PM

Unfortunately, JANET & HER ILK will never be able to fix their low diseased IQ and sheer idiocy. This is why >> >> http://wp.me/p4OZ4v-Hn

Four chan's picture

everyone on tv is approved by the tribe, make no mistake ever.

SoilMyselfRotten's picture

I'm trying to imagine these guys married just to picture their breakfast table discussions

SuperRay's picture

It's not a question of IQ. The Fed consists of a lot of smart people with their own agenda. It's a club run by Goldman Sachs and the city of London, and you ain't in it.

erkme73's picture

Is this Scott Nations? Or Laffer?  Or Krugman?  Or any of the number of talking heads that Schiff schooled time and time again?  Butthurt, bro?

SoilMyselfRotten's picture

He took out that whole FOX panel, lol, they laughed at him and even mocked him.

Expat79's picture

If you want to lose all your money, just keep listening to Schiff. Maybe in another 20 years it will pay off he'll call something right again. A broken clock is correct twice a day. Go buy a bunch of gold coins and wait for the apocolypse in your bunker, bro.

It's obvious that none of you bothered to look at his record at Euro Pacific capital. 

Seriously, will anyone who's on the Schiff train actually defend his horrible record??? Gold? Dollar? Schiff's mutual funds??? Does anyone want to look at the facts, or do you just want to get upset when people point at his failures as an investor?

Do you want the red pill?


erkme73's picture

I don't care about his investment advice.  I listen to his podcasts because he is brilliant at creating analogies that make sense when explaining complicated economic theories.  His analysis on Fed meetings/discussions/actions has been spot on.  They'll issue a GDP of 2.4% for 1QT, and he'll say "mark my words - this will be revised down to zero - maybe even negative".  A month later, it's revised to 0.4% - and likely will go negative.  Who has the courage (in the MSM) to call the Fed out time and time again, and get it right? 

Remington IV's picture

Schiff  = hyperinflation 2010

silverer's picture

Schiff called the last crash.  Who do you know that gets it right?

ArkansasAngie's picture

So ... given that we do NOT NIRP or QE ... What do "we" do?


How do you push reset and Not have chaos?


I'm all for pushing the button ... but how do we mitigate?


Must it be over time?  That's a tax that I truly hate to pay.

gdpetti's picture

Yes, exactly that... an 'experiment' but this one goes much, much deeper than mere economic manipulation.... that last time this 'experiment' was up and running was in Germany in the 30's.... and our police state is emerging out of the closet to setup the NWO in the same brownshirt fashion... first go after the weakest group, and then work your way down the list until all the sheeple are herded up and ready for transport to the market.

Think hyperdimensional... there is a method to this apparent madness, one that makes use of all of our planet's psychopaths, sociopaths, pedophiles, criminals and whatnot.... the cycle is ending... only the exact date is in 'flux', as are we and our global civilization... one affects the other, like those lies that form the basis of this 'civilization'. When the big lie cannot be supported any longer, then the game needs to be collapsed and reset. This is scripted by the PTB/SG, but they have to factor in the wild card that is Mother Nature/cosmos... it's all consciousness... one. There is a method to the negative vs positive interaction, same as with EU theory... behind those currents are the basics of thought taking form... all of us participate in the role assigned to us, like members of a common orchestra... how well we individually play affects the whole, some intend to disrupt and create chaos... making one's ability to stay in tune and on cue rather difficult, but then, if it was easy, any animal could do it, right?

RSDallas's picture

It's an International experiment! It is clear to me that they are trying to sinc the entire universe, or are they trying to be in sinc with the entire universe. Which is it? They are failing miserably at both! End the Fed!

Blackfox's picture

All you have here is two jews calling out another Jew. It's funny how Jews knew about 9/11 and was warned the day before. It is funny how Jews knew about the Paris bombings a day before.

It's all just confidence trickery for their pump & dump scemes - and yes that includes gold - that's why you all have been getting suckered the last 4 years. All you info is from Jews, amazing that zerohedges still listen to the MSM to be honest.


Raging Debate's picture

Blackfox - I consider that a good thing. Mass awakening and necessary change of operating the nation is far better alternative to global war. One means another lost decade but evenutual improvements. The other is a death toll of 2 billion and a very nasty existence for the survivors for decades. 

OldPhart's picture

I don't see much controversy on what they're talking about.  At least on on Zero Hedge.  This has been uncommented on for a while.

Goldilocks's picture

http://www.youtube.com/watch?v=pj4k0j97thM (3:49)

Make_Mine_A_Double's picture

What was Q1 posted at originally? + 2.4?

That's the Headline for the Algos and Wall Street. They know it's bullshit and the also know the MSM - TeeVee and print - will feed that garbage to the pigs.

So the real number now that they can't hide it? Trending to zero - in reality probably Neg .5 .

And they've been pulling this shit now for years. Only diff is now it's just in your face FU.

Don Sunset's picture

Here we are ......... APR 2016 and knee deep in this "screaming hot" recovery that offers overpriced deals on brand new 2015 autos!  With all these new jobs and the flood of auto loans how can there be so many 2015 new cars in inventory?


Now that's a lot of 2015s from one of highest volume dealers in the USA.

Things are not well.

ersatz007's picture

Harshing my vibe, man, with all this "truth" stuff.

Theonewhoknows's picture
Theonewhoknows (not verified) Apr 9, 2016 3:59 PM

Its not economy its Bubblnomics made by central banks. They created their bubbles with printing presses andnow they think how to get out of debt. Inflation is the answer. Problem with this inflationary escape of debt - idea that through increased money supply (gov spending) you can have inflation bigger than your interest rates accrue on your debt - is that you are TAXING everyone with savings through destruction of money. What is more - if you could have some sort of a guarantee that whatever government spends money WILL WORK - you don't have it. If it is a failure, it is huge and I mean bigger than 2008. Now we have many examples of such risks - Auto loan bubble, student loan bubble, S&P bubble not to mention bankrupted governments that can go to war not to pay the debt... 

this is called war on cash. We see it in front of our eyes and it will be bad.  http://independenttrader.org/war-on-cash-a-piece-of-a-bigger-puzzle.html

Don Sunset's picture

And a property tax bubble.  Many folks in SO CAL are paying 10-20k recurring in property taxes.  That was a goal of the central bankers.  Get property R.E. values up to raise state revenues.  Mission accomplished until all blood is sucked dry.

The bottom will evetually fall out and there will be no reserves or dry powder.  The GOVT stooges will blow every penny taken in.

I am Jobe's picture

dexpect to pay more in Property Taxes . Ah the dream ah the so called party conversations . WTF 

Omen IV's picture

so the fed eliminates interest income and then they take away social security and white collar jobs via the TTP


the property tax escalation will mean massive numbers of people cannot keep it up

Expat79's picture

How is it that ANYONE is still listening to "broken clock" Peter Schiff?

This guy has one of the worst track records ever:




fatlibertarian's picture

Sunshine pumpers said the same thing about Schiff before 2008.

Davidduke2000's picture

Peter is the top analyst on the market today, he's on written records when he called the housing crash and the financial disater of 2008.

He is correct on this depression.

shutterbug's picture

all (economincal and financial) blind people with sunglasses on say that about the people who have been proven right again and again...


Go listen to your FED and think we will surpass the last decade in growth. Don't complain when all your wealth has disappeared suddenly.

Youri Carma's picture

Can you say recession!

- February 2016 Unemployment Rate ShadowStats at 22.8%


- In March, the labor force participation rate (63.0%)


- Record 95 Million Americans NOT In Labor Force



- Taiwan Jobless Rate Rises In February
- Japan Unemployment Rate Rises In February
- South Korea Jobless Rate Climbs More Than Expected To 6-Year High

- U.S. Employment Rises More Than Expected In March
- U.S. Weekly Jobless Claims Rebound From Five-Month Low
- Brazil Jobless Rate Climbs Sharply In February

- Finland Jobless Rate Rises In February
- Norway Jobless Rate Rises In January
- Sweden Jobless Rate Rises Unexpectedly In February
- France Unemployment Reaches New Record High
- Spain Unemployment Climbs In February
- Greece Jobless Rate Rises In January
- Greece Q4 Jobless Rate Climbs
- Turkey Jobless Rate At 10-month High

- Fiat Chrysler cuts 1,300 workers in Michigan, scraps shift
- Nokia plans to slash 1,300 jobs in Finland
- Nokia to cut thousands of jobs following Alcatel deal
- HSBC, RBS and Barclays plan to close 400 UK branches this year: sources
- Societe Generale to cut 128 jobs in its GBIS division: union
- Boeing plans to cut up to 8,000 airplane jobs: sources
- Boeing says it will cut more than 4,500 jobs
- Lockheed Martin's aeronautics business plans 'voluntary layoff' program
- Thousands of jobs at risk as India's Tata Steel seeks British exit
- Avon to cut jobs, shift headquarters to UK
- VW to cut 3,000 office jobs in Germany by end 2017: sources
- Siemens to cut oil and gas jobs amid wider hiring
- Qatar's Al Jazeera network laying off 500 employees
- Credit Suisse to axe 2,000 more investment banking jobs
- UBS to cut around 300 investment banking jobs: sources
- RBS to cut 448 UK jobs in investment bank
- Credit Suisse to cut 163 jobs in New York
- Societe Generale says to cut 550 jobs over five years
- BlackRock planning to cut 400 jobs: source
- Goldman Sachs cutting up to 10% of fixed income trading staff: source
- In Houston, oil workers may face the ax but employment still grows
- U.S. jobless claims rise
- U.S. retailer Sports Authority files for bankruptcy, seeks buyers
- Doomsday Finally Comes to Wyoming's High-Flying Coal Country - Miners behind the region's durable coal boom face deep layoffs
- The Long, Agonizing Fall of PacSun - A slo-mo wipeout ends in bankruptcy court for the 36-year-old surf retailer
- Eastern Mountain Sports Said to Be Headed for Bankruptcy Court
- Victoria's Secret Cuts Jobs as Lingerie Giant Shifts Away From Iconic Catalog
- Nokia Said to Cut as Much as 14% of Workforce After Alcatel Deal

rosiescenario's picture

Thanks for one of the more intelligent posts. You could add CAT and JOY to your list as well as Deere.


Additionally we have just seen long haul truck purchases collapse and railcar loadings fall off....not to mention the Baltic index.

BigDawgz's picture

There's jobs available in my area....if you can make it on $9/hr.  Looks like that's what I'll be doing if I can't find something else with better pay by the end of the month.  Thankfully, I don't carry any debt & live very frugally so I can make the $9/hr work & still have a couple hundred left over at the end of the month.  But, yeah, I'd sure like to be able to put back more than just $200/mo.

CHoward's picture

Rick Santelli is the ONLY one on CNBC with any God given sense.  I fondly remember when he had his EPIC rant a couple of years ago - and that rant - launched the Tea Party!!

Frankie Carbone's picture

Rick Santelli = Gives douchebags a bad name. One of the Pied Pipers that led the Tea Party off a cliff. 

tarabel's picture



Given the propensity to put a gold star happy face on all economic indicators, can anybody in the class tell me what the real name is for what will soon be called a "recession"?


tarsubil's picture

Recessions don't happen anymore. I think we are retiring the word.

Yen Cross's picture

  This is awesome !  Feel the heat~ Bitchez

Powerslaved's picture

I'm not a financial guy. I'm just a working stiff. But my after reading ZH over the years one thing is obvious to me. It's not about trying to predict a recession or recession or crash. The numbers don't mean shit. It's about trying to predict when the Fed or who controls them will pull the levers.

Yen Cross's picture

 I call bullshit on that comment. You might think you don't trade, but every time you use that credit card, you're being triple taxed. [ask me why?]

 I triple pinky finger, dare you.

blindman's picture

Fed Audit Shocker: They Come from Planet Klepto
They Come from Planet Klepto
They Come from Planet Klepto
They Come from Planet Klepto
They Come from Planet Klepto

RSDallas's picture

I am wondering if this site has been hijacked by the government? Just saying? Pay Attention Peopl!

blindman's picture

hijacked must be a government term.
"hijack (v.) Look up hijack at Dictionary.com
1922, American English, perhaps from high(way) + jacker "one who holds up" (agent noun from jack (v.)). Originally "to rob (a bootlegger, smuggler, etc.) in transit;" sense of "seize an aircraft in flight" is 1968 (also in 1961 variant skyjack), extended 1970s to any form of public transportation. Related: Hijacked; hijacking. Related: Hijacker."

LoveTruth's picture

They try to have a full and total control of the economy through monetary policies.

The trend is we are becoming a totalitarian country in every possible way. Domestically and internationally. 

It is impossible, we all see the results, but they want to keep going on and fight for their cause throwing us in the battle.