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Debt Ceiling 101, Santelli Sounds Off

Tyler Durden's picture


In an effort to reach the angry mob, CNBC's Rick Santelli goes all Sesame Street on the numbers behind the US Debt Ceiling Rise. Focusing for two minutes on what this practically means for every man, woman, child, and politician, the shouting Chicagoan points out that when the US breaches this new limit then the world's entire population will be on the hook for $2,346 each (and $52,409 per US person).


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Fri, 01/27/2012 - 13:59 | 2103046 YesWeKahn
YesWeKahn's picture

Bernanke can print all that in 15 seconds.

Fri, 01/27/2012 - 14:01 | 2103066 lineskis
Fri, 01/27/2012 - 14:03 | 2103090 Caviar Emptor
Caviar Emptor's picture

Uncle Warren will pay it all down. 

Fri, 01/27/2012 - 14:04 | 2103104 SheepDog-One
SheepDog-One's picture

Yea can't we just lower interest rates some more and pay it off at 0%? 

Oh wait...

Fri, 01/27/2012 - 14:07 | 2103125 American34
American34's picture


Fri, 01/27/2012 - 14:14 | 2103158 Xkwisetly Paneful
Xkwisetly Paneful's picture

or over100K per actual taxpayer.

all irrelevant by 2020 trillions will look like billions do today and all the obligations will be marginalized.

Unless one is from The Magic the Gathering crowd in which case prosperity goes on forever until it doesn't at which point the world will end


Fri, 01/27/2012 - 14:20 | 2103199 redpill
redpill's picture

Let's just make interest rates negative and the debt will pay off itself automatically.  Brilliant!

Fri, 01/27/2012 - 14:45 | 2103295 FEDbuster
FEDbuster's picture

Zimbabwenomics, as I look at the 100 trillion dollar Zimbabwe bank note on my desk.  Default or hyperinflation, choose your poison. 

The battle to retain world's reserve currency status has begun.  When we lose that, it's a head first dive into the shit abyss.

Fri, 01/27/2012 - 15:18 | 2103422 ratso
ratso's picture

Santelli has a big blusterous mouth and doesn't know how to listen.  He just yells over everyone.

His fame comes from sensationalizing the obvious - big whoop. 

Santelli - BOOOOOO!

Fri, 01/27/2012 - 19:07 | 2104191 slaughterer
slaughterer's picture

Santelli sounds like David Lee Roth.  

Fri, 01/27/2012 - 17:03 | 2103838 Freegolder
Freegolder's picture

Well, in fact the battle/war began around 80 years ago, and will be over within 5 years,

Bye bye dollar system, hello freegold.

Fri, 01/27/2012 - 14:46 | 2103298 TheSilverJournal
TheSilverJournal's picture

According to this CNBC reporter that is possible because "They control it. They can do whatever they want."

So according to this guy, the Fed has a magic wand and can control everything. How brainless of a statement is that?

Of course, the Fed can’t do whatever it wants. The Fed doesn’t have a magic wand. The fact is the Fed operates in the real world and there are real consequences to the Fed’s actions of printing money and ultra low rates, such as inflation. And inflation inevitably leads to higher rates.

Fri, 01/27/2012 - 15:36 | 2103503 BLOTTO
BLOTTO's picture


just thinking...

and wondering if a major war thats on the horizon, which would kill many people, essentially does the same thing...debt pays itself off?


Fri, 01/27/2012 - 16:37 | 2103708 grekko
grekko's picture

Nope, war doesn't help.  With all those dead guys not paying in, all of the survivors just gwet a bigger piece of the debt pie.

Fri, 01/27/2012 - 18:47 | 2104131 zerozulu
zerozulu's picture

I thought about your suggestion for a few minutes but I think I will accept Jubilee Debt that’s it. No compromise.

Fri, 01/27/2012 - 19:03 | 2104174 LongBallsShortBrains
LongBallsShortBrains's picture

I'll take a trillion @ -.01%. Pay me to borrow!

Sat, 01/28/2012 - 13:45 | 2105571 Zero Debt
Zero Debt's picture

> Let's just make interest rates negative and the debt will pay off itself automatically.  Brilliant!

Kind of funny but obviously totally wrong. If you did that, then bondholders would have to take a guaranteed annual haircut on the principal. If that was the case, they would most likely try to sell those bonds. Who would like to own an asset that goes down 2% per year, guaranteed. Unless you were forced to own it, of course. So this would drive rates up again, and probably sharply. If the bonds were to be used as reserves in a fractional lending institution, and you kept haircutting that capital base, you would have a leveraged deflationary effect on the size of that institution's balance sheet and thus unleash a boatload of other unintended consequences.

Sat, 01/28/2012 - 18:29 | 2106052 rbg81
rbg81's picture

Who would like to own an asset that goes down 2% per year, guaranteed?


You might do it if you run out of good options for capital preservation.  If you are convinced everything is way, way going down but the Govenment itself, then taking a slight loss to preserve the vast bulk of your capital may make sense.  Yes, you could keep it in a bank, but if you have $10M or more, it gets very cumbersome to stay under the FDIC limit for each account.  Or you could put it under your mattress and hope a fire or thief doesn't get it.  So, under some scenarios, a small haircut every year might be the best option.

Fri, 01/27/2012 - 14:42 | 2103268 Zero Govt
Zero Govt's picture

Bumma and the rest of the stinky parasites in DC are out of their collective tiny little minds spending like this ...and the tossers behind the State curtain sucking hard as they can on Nannies nipple

is there a loonatic asylum big enough to house all these criminals? ...if there isn't rope is a short swift answer

Fri, 01/27/2012 - 14:59 | 2103352 LetThemEatRand
LetThemEatRand's picture

The $1.2 Trillion increase is actually less than the net worth of just the top 400 richest people in the U.S.    The 4 people who inherited the WalMart fortune (who never had to work a day in their lives) could pay a good chunk of it themselves.   I wonder how much cash GE saved by paying zero taxes last year.    Of course its the rest of us that will get to foot this bill as suggested by Santeli.  But that is by design.   They print it, they keep it, they spend it, we get the bill.

Fri, 01/27/2012 - 15:28 | 2103479 Michael
Michael's picture

I'm just glad my kids are exempt from paying back that national debt of the US.

Fri, 01/27/2012 - 16:36 | 2103702 viahj
viahj's picture

haha, i fooled them...i don't have any kids!

Fri, 01/27/2012 - 21:11 | 2104573 Van Halen
Van Halen's picture

It's gosh-darn embarrassing that the Japanese were able to stumble into QUADRILLIONS with their debt when all we can do is trillions! Can't Timmeh do SOMETHING before he leaves? Can't Ben make us number one again?

Sun, 01/29/2012 - 00:57 | 2106730 NidStyles
NidStyles's picture

What's wrong with Magic The Gathering? Sure the game is populated with an over-abundance of Socialist idiots, but not of uss are that way.

Fri, 01/27/2012 - 14:50 | 2103325 Silver Bug
Silver Bug's picture

Santelli is the only true man on CNBC.

Fri, 01/27/2012 - 16:42 | 2103693 Max Fischer
Max Fischer's picture



Since you're a self-proclaimed silver bug, do you know how ironic it is that you like Santelli?  Aside from CNBC, do you not understand who he works for and where he's spent his 30+ year career?  You ever heard of a magin hike?   

As for me, I liked Santelli until his infamous rant about "losers" who can't pay their mortgage - typical smug, Wall Street "master of the universe" attitude. Whether it was deliberate or not, he was one of the initial players in duping Americans into deflecting the blame of this crisis away from Wall Street and onto the middle class.  With that rant, he unwittingly became the leader of the Tea Party movement for a short while.   

More than anything, though, his rant was a springboard for the new class warfare that began in America, which was also at the heart of the Tea Party.  Us versus them has been the theme ju jour, but instead of "them" being Wall Street, "them" became each other.  Americans got duped into fighting and blaming one another, rather than blaming the plutocrats who sucked all the marrow from this country. Fuck everyone on food stamps!  Losers!  Fuck dumb Americans who got duped by teaser rates!  Losers!  Fuck retired teachers, police officers and firefighters who have overly lucrative retirement plans!  Greedy bastards!  Fuck unions for trying to make more than their slave counterparts in third world countries! Fuck the baby boomers who want their social security... it's just a ponzi scheme, you idiots!  Fuck losers who can't afford health insurance!  Fuck anyone who can't take care of themselves!  Fuck anyone with a sense of entitlement! 

Over the past three years, Americans have been duped into fighting against each other, rather than against the true culprits of the crisis. I would say that Santelli's rant was the official start of the class warfare which has divided our country like never before. It was the siren call for many Tea Partiers to get off their Lazy Boy Chair and, for the first time, go to town meetings and protest one another.  I'm sure he didn't intend for the divisiveness that ensued, but that's how his rant was understood and disseminated. While Main Street remains at each other's throats, Wall Street is, for the most part, back to normal.      

Max Fischer

Fri, 01/27/2012 - 16:49 | 2103771 nope-1004
nope-1004's picture

What's a Boy Chair?


Fri, 01/27/2012 - 18:03 | 2104025 Crummy
Crummy's picture

The IRS uses them. It looks sort of like a hemorrhoid donut, but it goes on your lap.


Fri, 01/27/2012 - 17:01 | 2103830 11b40
11b40's picture

Good points, Max.....OWS is busy re-channeling the 99%'s anger.  Just wait until summer - the summer of discontent is coming to America.


Fri, 01/27/2012 - 17:36 | 2103951 Bob Sacamano
Bob Sacamano's picture

"Them" is the federal government.  

But you are correct in the sense that the "federal government" starts to seem equivalent to "us" for the majority of Americans look to the federal government to provide their basic needs and/or think the federal government should provide such for all who demand it.   I am not in that majority.   

Fri, 01/27/2012 - 18:16 | 2104047 Max Fischer
Max Fischer's picture


Did our government play a role in the crisis?  Yes, absolutely.  But not nearly to the degree in which the right-wing would have you believe.   

The obsessive demonization of our government by the right-wing reminds me of the lunacy surrounding McCarthyism.  Not since the 1950's have we seen such extreme fear, paranoia, conspiracy and lunacy about phantom enemies and villians as we do today about the federal government. The manner in which the right-wing has portrayed our government parallels the irrational, borderline schizophrenic fear of communism during the 1950's. It's fucking ridiculous, yet a huge portion of the gullible public chomps that bait with no regard to actual truths or realities. We've been told that there is a great evil at our doorstep*, blood will run through the streets, RELOAD, and that the presidency of Obama is as great of a threat to America as Nazi Germany or the Soviet Union.** And of course ObamaCare is really just a sininster ploy to bring death panels and eugenics to America! Every day, we hear endless references to socialism, Marxism, communism, Obama is a Muslim terrorist, government vaccinations cause retardation, our children are being indoctrinated.... etc. etc. etc. 

It's fucking RIDICULOUS!

Everyone is being duped that the enemy to the American way of life is either irresponsible "losers" or politicians who are secretly trying to transform America into a communist social project. Meanwhile, the real threat to this country continues unabated.   

*Glenn Beck

**Newt Gingrich



Fri, 01/27/2012 - 18:31 | 2104089 CompassionateFascist
CompassionateFascist's picture

ZOG  (Crony Capitalism + State Socialism) = Max Fischer.

Fri, 01/27/2012 - 18:38 | 2104109 11b40
11b40's picture

Tell me again how we managed to get bogged down in 2 unfunded wars?

Tell me who controlled the House of Representatives for almost all of the past 18 years?

Who was it that was going to have an "ownership" society?

I could go on, but what's the point?  Go ahead. Cast your vote for Newt.

Fri, 01/27/2012 - 19:06 | 2104182 Ms. Erable
Ms. Erable's picture

Your ignorance would be amusing if it weren't for the probability that you vote. Here's an idea for you (since you're only capable of parrot-like retention and regurgitation); take your right-wing, your left-wing and a drumstick and shove them all up your ass (same goes for your buddy Max). Remove them when you realize 'your team' is playing for the same side as 'their team'.

Fri, 01/27/2012 - 20:08 | 2104231 Max Fischer
Max Fischer's picture



Anytime I criticize the right, and you idiots interpret that as an endorsement of the left, it proves that your mind only exists within the two party paradigm. No doubt, both parties pander to the 1%.  My two posts above are just comments on how the right-wing deceives everyone.  That is not to be interpreted as an endorsement of the left.  I focus on the right because the hypocrisy and lunacy of the right is richer and deeper than the left.  In my mind, they're vastly more despicable than the left - crooks, liars and charlatans... all of them.  I also focus on the right because ZeroHedge often appears to be an echo chamber of right-wing ideologies, and a different voice is desperately needed around here. Even the Ron Paul fanatics continually barf up the same right-wing lunacy. 



Fri, 01/27/2012 - 20:26 | 2104437 Ms. Erable
Ms. Erable's picture

Max, you lack critical thinking and reading comprehension skills.You really think that saying the equivalent of "both of them are whores, but MY whore will only give you herpes and syphillis; THEIR whore will give you gonnorhea and AIDS' makes you look any less a dipshit partisan cheeerleader? In case you don't understand, let me continue with the metaphor: WE DON'T WANT EITHER OF YOUR SKANKY WHORES.

P.S. have a nice weekend, and go fuck yourself.

Fri, 01/27/2012 - 20:49 | 2104526 LetThemEatRand
LetThemEatRand's picture


I read your comments and Max's comments, and I am quite certain that you are the one who lacks critical thinking skills.    Your argument is a classic straw man, which is a favorite of those who lack critical thinking skills and/or who know that their own position is inherently untenable and thus who seek approval from those who lack critical thinking skills.

Fri, 01/27/2012 - 21:13 | 2104578 Ms. Erable
Ms. Erable's picture

I neither seek nor require anyone's approval save my own, and your interpretation of my post carries as much weight as a bottomless basket. Go troll someone else for political diatribes - you're not even worth this much effort.

Fri, 01/27/2012 - 21:20 | 2104596 LetThemEatRand
LetThemEatRand's picture

"Look, I can continue to have a discussion wherein I ignore the substance of the argument against me and yet sound like I think I have the upper hand because I use the word 'troll'!"  Nicely done, Mis-erable.  By which I mean, nicely done for those who lack critical thinking skills.  Read Rand much? I'll bet you're a big fan, aren't you.

Fri, 01/27/2012 - 21:07 | 2104567 Max Fischer
Max Fischer's picture



I just - very specifically - told you that I don't endorse either party.  I'm not a democrat, nor am I trying to promote the party with less herpes.

I can't make it any clearer. 

Your mind is so entrenched in the two-party system that even AFTER I tell you that I'm not endorsing the democrats, you STILL can't wrap your brain around it.

Before I go fuck myself, could you please tell me what offended you in my post?  While you imply that you're a libertarian, you also seem offended by my anti-republican commentary.  Are you one of those right-wing pigs dressed up in libertarian clothes? 

Max Fischer, Avis in caput magnum futuens tuum cacet



Fri, 01/27/2012 - 21:48 | 2104661 Ms. Erable
Ms. Erable's picture

" I focus on the right because the hypocrisy and lunacy of the right is richer and deeper than the left.  In my mind, they're vastly more despicable than the left - crooks, liars and charlatans... all of them."

So, you're saying that the left's hipocrisy and lunacy isn't as bad as the right's version of the same thing - as if just a little of either is any better than lots of both. Maybe you have a short memory, but who instituted the Feral Reserve, the 16th Amendment, the first massive devaluation of the USD and outright theft of real money in the US, committed the US to WWI under suspect pretenses, and kicked off that little foray into Vietnam/Laos/Cambodia? 'Crooks, liars, and charlatans', indeed.

I can sit here and play tit-for-tat with you over which side is worse all night long. Problem for you is that I'd be pointing out the douche nozzles on both sides of that coin, where I only see you pay lip service to the idea that there may be bad people or ideas on the left, but the right is just completely out to rob you blind, kill you, and rape your corpse. At least you admit that the problem is in your mind in the statement quoted above.

Keep cheerleading, Max, and keep your birdshit to yourself.

Sat, 01/28/2012 - 11:46 | 2105407 island
island's picture

Max - For what it is worth, know you aren't alone.  Most people just aren't as perceptive and intelligent.

Sat, 01/28/2012 - 03:45 | 2105102 KickIce
KickIce's picture

"I also focus on the right because ZeroHedge often appears to be an echo chamber of right-wing ideologies"

If by right wing ideology you mean less government is better than I would agree and I would consider myself in that camp.  I would also be in the camp that respects our founders and values the Constitution. 

The problem with being on the right these days is that you are not being represented in Washington, although there are many who claim to represent you.  Take abolishing the Fed, something I think several ZHers have in common, that view is hardly so be seen in DC. 


Sat, 01/28/2012 - 12:40 | 2105442 11b40
11b40's picture

@Ms. Erable.

Would you care to discuss any of the issues, or do you simply want to engage in elementary name calling?

I have a history of posts essentially saying both parties are just 2 cheeks of the same ass, and will be happy to debate the points as time permits.

Fri, 01/27/2012 - 14:34 | 2103245 GenX Investor
GenX Investor's picture

I like the talking head reaction when RS says that this has been covered ZERO times in the news, and he turns around to say, well there are a lot of other things going on right now...  Nice, don't focus on the world imploding, nothing to see here folks... this is not important to focus on...

Fri, 01/27/2012 - 14:52 | 2103334 mholzman
mholzman's picture


No. Uncle Warren doesn't really want to "pay it down." Through Berkshire Hathaway, Uncle Warren was financially involved in numerous, large residential developments that were highly priced and poorly built. Today, vacant. Some now in the hands of Fannie & Freddie. Those developments are being supplemented through the average taxpayer and the Bernanke print machine. That's the reality of the social responsibility of Uncle Warren.


Fri, 01/27/2012 - 20:59 | 2104548 WolfePaq
WolfePaq's picture

...Not to mention all the empty crap trailers he sold FEMA

Fri, 01/27/2012 - 14:07 | 2103122 vast-dom
vast-dom's picture

15 milliseconds a la HFT stylee!

Fri, 01/27/2012 - 14:10 | 2103143 stocktivity
stocktivity's picture

Rick Santelli ... the only CNBC talking head worth listening to.

Fri, 01/27/2012 - 14:38 | 2103261 Denver768
Denver768's picture

Agreed. Who was the ass clown laughing in the background about it getting 0 coverage from media.   Wake up America. This shit is real and it isn't funny.

An economy that requires a continual increase in debt to even *survive* is artifical, completely and totally.  When this final sovereign bubble bursts, we're f'd

Fri, 01/27/2012 - 14:18 | 2103186 tecno242
tecno242's picture

Gas will go to 15$ a gallon if he does.

A gallon of milk will run you 30$

Sat, 01/28/2012 - 03:50 | 2105110 KickIce
KickIce's picture

This is the only way to wake the sheeple, and the CBs are doing everything in their power to prevent it while they purchase gold and farmland on our tab.

Fri, 01/27/2012 - 17:38 | 2103957 Money never sleeps
Money never sleeps's picture

Kyle Bass on when the shit is going to hit the fan:

Sat, 01/28/2012 - 20:08 | 2106165 rbg81
rbg81's picture

Rick is just doing the same old schtick over and over.  I doubt anyone is really listening.  People pay lip service to the deficit, but most don't really give a shit.  Why?  Because they think they'll get something for nothing and they'll always find a chair when the music stops.

Fri, 01/27/2012 - 14:00 | 2103053 Pladizow
Pladizow's picture

"Alot of other news burying it" - WTF!- What, did Snooki fuck another guy?

Fri, 01/27/2012 - 14:06 | 2103111 EvlTheCat
EvlTheCat's picture

LOL. You caught that too, huh?

Fri, 01/27/2012 - 16:20 | 2103652 Blank Reg
Blank Reg's picture

Yea, right. If there hadn't been other more important stories (cough, cough) the press would have been all over this. PA-LEEZE!

Fri, 01/27/2012 - 14:27 | 2103228 WonderDawg
WonderDawg's picture

Translation: We've managed to bury this under a lot of other insignificant bullshit.

Fri, 01/27/2012 - 14:00 | 2103057 Xue
Xue's picture

Gold oz: 2263.65 Euro


Can someone explain this for me? or is it a bug? (same with GBP and silver btw)

Fri, 01/27/2012 - 15:24 | 2103453 BGO
BGO's picture

Two days ago, a similar (blip?) showing Platinum at 3,830 appeared and stayed up all day long on one of FinViz's tickers. Over the past two years, afaik, that specific ticker has never experienced a glitch. 

Fri, 01/27/2012 - 14:00 | 2103062 ucsbcanuck
ucsbcanuck's picture

Rick Santelli - keepin' it real! Thanks for putting it on CNBC...

Fri, 01/27/2012 - 14:01 | 2103068 Corn1945
Corn1945's picture

Default and get it over with.

Fri, 01/27/2012 - 14:31 | 2103241 Apply Force
Apply Force's picture

Default is the only option.

I vote No Consent, as I'm sure many others will.  I will not be party to this debt lunacy, I owe none of it.  Try collecting at your own peril dot gov... my battle axes are sharp & I know that the map is not the territory.

Fri, 01/27/2012 - 14:47 | 2103292 Zero Govt
Zero Govt's picture

Default is the best/only option ..but why are Yanks waiting for the tossers in Washington to make the/their decision?

Force the policy yourselves, quick and simply... Stop Paying Your Taxes

Zero Tax = Zero Govt (= Zero Debt)

'Game Over' for all the creeps in DC, WS and other crooks hiding behind the window dressing called 'democratic Govt'

Fri, 01/27/2012 - 15:45 | 2103539 Ignorance is bliss
Ignorance is bliss's picture

I pay taxes because I don't want to be a ward of the prison system. When I quit paying taxes, it will be once the gov't starts collapsing from hyper-inflation. Then they wouldn't bother collecting my few fiat millions (think Zimbabwe) I'm waiting for it the Dollar to melt up. Then taxes won't matter anymore.

Sat, 01/28/2012 - 13:33 | 2105536 Zero Debt
Zero Debt's picture

+1 for the equation and it works for other countries too.

Also each and every generation should pay off their own debts. To pass on debts to coming generations is the same thing as saying that you have the right to their income before they are even born which is deeply morally flawed.

Fri, 01/27/2012 - 14:01 | 2103069 DrunkenMonkey
DrunkenMonkey's picture

Gulp is right.

Fri, 01/27/2012 - 14:01 | 2103070 navy62802
navy62802's picture

Don't worry, folks. Your government is in control. Go back to bed, America, your government is in control again.

Fri, 01/27/2012 - 14:03 | 2103089 Pladizow
Pladizow's picture

Americans wont be able to gulp with a boot on their throats!

Fri, 01/27/2012 - 14:17 | 2103181 Overpowered By Funk
Overpowered By Funk's picture

I wouldn't hold it against you if you sharted.

Fri, 01/27/2012 - 14:01 | 2103074 Jason T
Jason T's picture

Gulp.. I could use a big Gulp from 7-11 ... coke ..that'd be mint right now

Fri, 01/27/2012 - 14:02 | 2103076 Irish66
Irish66's picture

Glad he is back.  I worried they had let him go!

Fri, 01/27/2012 - 14:02 | 2103078 monopoly
monopoly's picture

Man, would it not be great to have Rick and the "head" of the fermentation committee at the same bar at the same time and in Chicago.

I would pay a fortune to be able to join in.

Fri, 01/27/2012 - 14:03 | 2103086 Elwood P Suggins
Elwood P Suggins's picture

Krugman says no problem - nothing to see here - just move along.

Sat, 01/28/2012 - 02:33 | 2105051 The Real Fake E...
The Real Fake Economy's picture

Krugman would say there's nothing to worry about.  Just keep printing and keep the debt growing.  It's sort of like being in so much pain you eventually pass out, so then it doesn't matter, does it?  

Fri, 01/27/2012 - 14:03 | 2103091 drink or die
drink or die's picture

"child" includes newborns and toddlers.  You heard it here first folks, CNBC with some hard-hitting news.

Fri, 01/27/2012 - 14:03 | 2103095 Defiant1968
Defiant1968's picture

There is no need to worry about the debt ceiling or debt amount - Why should the country not borrow at these low interest rates when the debt is so large (who buys this debt - they must be dumb asses) -  it will never be paid back!

Fri, 01/27/2012 - 14:03 | 2103096 brown_hornet
brown_hornet's picture

Good luck collecting that $52 grand from ME.

Fri, 01/27/2012 - 14:05 | 2103108 drink or die
drink or die's picture

It's collected via inflation.  No tax collectors necessary.

Fri, 01/27/2012 - 17:30 | 2103918 stirners_ghost
stirners_ghost's picture

Until demand for new credit stops. As it did in '08.

You're witnessing the death throes of the fiat credit money inflation engine which has already thrown a rod through the crankcase, but continues momentarily to turn over under its own inertia until friction (entropy) spoils the shenanigans in an explosion of sparks and smoke.

Fri, 01/27/2012 - 14:50 | 2103324 TheSilverJournal
TheSilverJournal's picture

The real problems go much deeper than the national debt shows. The US is on the hook for many off balance sheet items with guarantees of housing, the banking system, etc., and has massive unfunded liabilities of over $100T. The only way to stop this nonsense is to stop going deeper into debt. The deeper debt hole we dig, the deeper hole we’ll have to ultimately climb out of.

Fri, 01/27/2012 - 16:42 | 2103727 viahj
viahj's picture

if we continue digging deeper into that debt whole, won't we come out in China? 

Fri, 01/27/2012 - 14:05 | 2103106 stant
stant's picture

thats just digital money rick that dont count. i just take cash

Fri, 01/27/2012 - 14:08 | 2103117 prains
prains's picture

ugly ugly math 


nothing more beautiful pure and true than math

beautiful beautiful math will never let you down, will always tell you what you need to hear NOT what you want to hear


don't ever mistake accounting for math

Fri, 01/27/2012 - 14:27 | 2103231 mayhem_korner
mayhem_korner's picture



+1 Right-o.  Sound math.  Ugly truth.

Fri, 01/27/2012 - 15:49 | 2103559 ebworthen
ebworthen's picture

"don't ever mistake accounting for math"

True that.

Accounting is juggling numbers, math is slicing them.

Fri, 01/27/2012 - 14:08 | 2103120 lasvegaspersona
lasvegaspersona's picture

The debt per able adult for all US debt comes to roughly $750,000. If we count all liabilities of the government and divide by the number of those actually ABLE to pay that is the number. (per the calculations of Dan Amerman). Simply stated, this debt will never be paid because the debt CAN never be paid. Proceed with your assumptions from this starting point.

Fri, 01/27/2012 - 14:14 | 2103160 SilverIsKing
SilverIsKing's picture

"Proceed with your assumptions from this starting point."

From this starting point, I assume the debt will grow.

Fri, 01/27/2012 - 14:08 | 2103131 groovin123
groovin123's picture

Perhaps they could have a liquidation sale to raise funds, and I could purchase one of those tanks from

the railroad clip I saw earlier.


That'd be a fun Friday night, a case of cold beer and a tank.



Fri, 01/27/2012 - 14:22 | 2103210 lasvegaspersona
lasvegaspersona's picture

My kind of fun too. Things that go bang and lubrication....not just Brake Free either...

Fri, 01/27/2012 - 14:09 | 2103133 SheepDog-One
SheepDog-One's picture

'This debt ceiling increase news has been buried by a lot of more relevant news'...

Like what, Mitt Romneys hairpiece cost? Bunch of total bullshit, it was buried because TPTB said 'Bury this turd dont let the sheeple see it leave them to chew their green shoots.'

Fri, 01/27/2012 - 14:59 | 2103361 valley chick
valley chick's picture

Mitt Romney has a hairpiece?  Oh no ...say it isn't so !      (how much does it cost?)

Fri, 01/27/2012 - 14:13 | 2103157 Cone of Uncertainty
Cone of Uncertainty's picture

Rick needs to check his shitty math.

I laughed my fucking ass off when he said it was ONLY $50k per person in the US.

The debt will never be repaid, nor will it be paid down.

It will continue to grow and grow and grow, until someone is left holding the bag--of course, we know who that is now don't we.

Fri, 01/27/2012 - 14:18 | 2103188 mktsrmanipulated
mktsrmanipulated's picture

rick is the only guy on cnbc worth a shit

Fri, 01/27/2012 - 14:22 | 2103205 bob_dabolina
bob_dabolina's picture

What about unfunded liablilities?

Are those re-hypothecatible?

Fri, 01/27/2012 - 14:25 | 2103221 5880
5880's picture

pay for it in Zimbabwe dollars

Sat, 01/28/2012 - 01:30 | 2104988 StychoKiller
StychoKiller's picture

Gotcha covered wid my 2 100Trillion Z-Notes -- party on!

Fri, 01/27/2012 - 14:26 | 2103225 mayhem_korner
mayhem_korner's picture



The sick part of the video is that Gonzalez is all smiley about the whole bit. 

What would really be interesting is to stack up all the world's debt, including unfunded entitlements, and divide that number by the total earth citizenship.  I think if folks saw that number, they'd toss in the towel right there.

Fri, 01/27/2012 - 14:27 | 2103229 adr
adr's picture

By the end of the year we will be down to somewhere around 100 million jobs, thankfully since labor force participation will be close to that number the unemployment rat will be down around 2%, ha. So 100 million people will need to pay off $16 trillion in debt when 99million of those make less than $35k a year. They'll also need to fund $100 trillion worth of promised liabilities. Sure, that'll happen.

Fri, 01/27/2012 - 14:28 | 2103234 non_anon
non_anon's picture

i love that guy, no homo

Fri, 01/27/2012 - 14:33 | 2103244 Truffle_Shuffle
Truffle_Shuffle's picture

Time for a good ole' fashioned debt jubilee. 

Fri, 01/27/2012 - 14:35 | 2103251 SaveTheGreenback
SaveTheGreenback's picture

Santelli is a refreshing voice.

The real father of the Tea Party movement.  It all started with the rant about "who wants pay your neighbor's mortgage?" back in 2009....

God Bless Rick Santelli....

Fri, 01/27/2012 - 14:52 | 2103335 Dr. Engali
Dr. Engali's picture

I agree with your comment, but as far as your username. Well... It's too late.

Fri, 01/27/2012 - 15:01 | 2103364 SaveTheGreenback
SaveTheGreenback's picture

It will be too late when silver is $1000 per ounce and it's illegal to own gold.  We're not that far away, unfortunately...


Fri, 01/27/2012 - 14:56 | 2103351 NotApplicable
NotApplicable's picture

He's the real father of the organized movement (sponsored by the Kochtopus).

Dr. Paul was the father of the original, grass-roots version, where they held symbolic tea parties. Dr. Paul can be found at one of them on Youtube throwing barrels of gov. programs off of a boat.

That said, I still like Santelli, the only sentient life-form on CNBC.

Fri, 01/27/2012 - 15:08 | 2103383 SaveTheGreenback
SaveTheGreenback's picture

Agreed.  Dr. Paul is also a true patriarch of the movement.  

Aside - I hope Rand Paul is president one day.  People will be wishing they voted for Ron Paul in a few years.  Again, we are ahead of the curve here.  I don't hold false hope that Dr. Paul can win this year.

Most of the sheeple think "everything will be fine a months when we sell our house".  Damn shame.

Fri, 01/27/2012 - 14:36 | 2103254 Seasmoke
Seasmoke's picture

well if Mitch McConnell just paid 4 Trillion , Warren Buffett said he would would triple Match

Fri, 01/27/2012 - 14:37 | 2103259 Dezperado
Dezperado's picture

“A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes, because it has reasons to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy.


 Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed; and so in this sense it can be called an instrument of unpopular, i.e. of anti-democratic policy, since by misleading public opinion it makes possible the continued existence of a system of government that would have no hope of the consent of the people if the circunstances were clearly laid before them.


 That is the political function of inflation.


It explains why inflation has always been an important resource of policies of war and revolution and why we also find it in the service of socialism. When governments do not think it necessary to accomodate their expenditure to their revenue and arrogate to themselves the right of making up the deficit by issuing notes, their ideology is merely a disguised absolutism.”


Ludwig von Mises, “The theory of money and credit” [1912]

Sat, 01/28/2012 - 01:39 | 2104997 JeffB
JeffB's picture

Thanks Dezperado.

Fri, 01/27/2012 - 14:42 | 2103275 kito
kito's picture

ricky boy is screaming to himself. the masses have been sufficiently programmed to not comprehend the gravity of the issue, thereby not giving a crap, thereby waiting like pavlovs dogs for cramers show to give them the next great stock pick....... 

Fri, 01/27/2012 - 15:12 | 2103394 beachdude
beachdude's picture

Kito, I think that most people are sheeple, simply unaware... they just don't know. Many if not most in my circle knows Santelli. Many if not most in my circle knows the gravity of the issue. My TV's are on CNBC (low volume) and Fox business (volume off) and Santelli will have me reaching for the remote. He's been picking on Liesman, LIES MAN, a lot lately like he's starting to really get pissed off. It makes for great TV as Santelli comes across as an extremely concerned professional and Liesman is dancing and chortleing like the Keynesian Klown he is.

Programmed not to comprehend? Perhaps. But mostly...

"They don't know, that they don't know, that they don't know."




Fri, 01/27/2012 - 15:14 | 2103407 beachdude
beachdude's picture

"They don't know, that they don't know, that they don't know."

I'm thinking about putting that on a t-shirt, so dibs.

Fri, 01/27/2012 - 15:24 | 2103463 kito
kito's picture

yes, programmed not to comprehend. msm does a very good job of shoving lies and half truths down the peoples throats.........and of course the natural outcome of this is that dont know, that they dont know, that they dont know...............

Fri, 01/27/2012 - 14:43 | 2103283 redarrow
redarrow's picture

Facebook to file IPO next wed (breaking now). I guess the economy is all OK because the IPO is for 100 billion.

Fri, 01/27/2012 - 14:49 | 2103315 Zero Govt
Zero Govt's picture

FukBud IPO should mark the stock markets top very nicely

Note: 'Run to the Hills, Run for your lives"

Fri, 01/27/2012 - 16:32 | 2103689 Xanadu_doo
Xanadu_doo's picture

Ride the new wealth effect, bitchez.

and +1 for the Iron Maiden line. ;-)

Sat, 01/28/2012 - 06:53 | 2105225 jerry_theking_lawler
jerry_theking_lawler's picture

is it maybe because it is NOW.....or NEVER.

Fri, 01/27/2012 - 15:03 | 2103371 NotApplicable
NotApplicable's picture

Well, there's never any lack of demand by the elite for more Big Brother solutions, so I can't see how FB can fail.

After all, what's not to like? Spend some seed-money to create the infrastructure, while the herd adds all of the content to it.

Between FB's networks aggregating, cataloging and linking private lives, and Google, who will own the web 2.0 world via Google apps, they're going to end up knowing us better than we do ourselves. Minority Report, anyone?

Fri, 01/27/2012 - 15:30 | 2103484 redarrow
redarrow's picture

Cannot think of a deeper cesspool as far as privacy goes. I do not see the value there for myself but what do I know? I am just a reader here :)

Fri, 01/27/2012 - 14:44 | 2103293 Max Hunter
Max Hunter's picture

Since CNBullshit can't even let us watch a video without their logo I will NEVER.. as long as I live.. NEVER turn on that station again. on my TV..

Fri, 01/27/2012 - 14:47 | 2103306 Flounder
Flounder's picture

The Ben Bernank: yea but if you are using printed monopoly money it doesn't matter.


Fri, 01/27/2012 - 14:51 | 2103332 Texas Ginslinger
Texas Ginslinger's picture

Interesting that there was no public posturing or fighting about this in Washington.

Was done very quietly this time around.

Fri, 01/27/2012 - 14:54 | 2103346 Dr. Engali
Dr. Engali's picture

Okay. Apple really needs to settle this "war" with adobe. I hate that I can't watch flash videos.

Fri, 01/27/2012 - 15:09 | 2103390 NotApplicable
NotApplicable's picture

If Adobe ever figures out what proper security is about (pdfs "encrypted" by ROT13 (A=N, B=O) for example), then perhaps the Ghost of Steve Jobs will acquiesce.

Until then, I have to agree with him. Adobe Sucks!


Fri, 01/27/2012 - 15:14 | 2103409 Dr. Engali
Dr. Engali's picture

Well if that's what it takes then fine.I'm not a software geek. I just hate that I can't watch certain videos from my iPhone,and I'm not about to jail break it.

Fri, 01/27/2012 - 15:49 | 2103560 Sheriff Douchen...
Sheriff Douchenik from AZ's picture

Solution is pretty simple don't jailbreak the phone...just break it and stop letting Jobs from the grave decide what you can watch.

Fri, 01/27/2012 - 16:05 | 2103606 WTFx10
WTFx10's picture

Ah poor baby should of that of that before you bought that iPOS.

Fri, 01/27/2012 - 15:01 | 2103365 Sk84life
Sk84life's picture

I think that this is all good.  Perhaps its time for everyone in the entire world to pay about 2400 bucks for us.  Its thier "fair share" ?

Fri, 01/27/2012 - 15:04 | 2103374 mktsrmanipulated
mktsrmanipulated's picture

anything new from kyle bass


Fri, 01/27/2012 - 15:11 | 2103397 NotApplicable
NotApplicable's picture

He probably picked up some more nickels.

Fri, 01/27/2012 - 15:54 | 2103580 francis_sawyer
francis_sawyer's picture

nickles bitchez!

Fri, 01/27/2012 - 15:07 | 2103376 Dr. Engali
Dr. Engali's picture

Oops somebody already posted below. Delete.

Fri, 01/27/2012 - 16:52 | 2103786 viahj
viahj's picture

can you show me how you side stepped the space-time continum because if they posted were first?

Fri, 01/27/2012 - 19:39 | 2104263 Dr. Engali
Dr. Engali's picture

It all depends on how you set up your thread preferences.

Fri, 01/27/2012 - 15:09 | 2103389 aerial view
aerial view's picture

Our honest and trustworthy leaders all know the debt will never be paid off; therefore, the dollar must remain the reserve currency and this will continue to be enforced at all costs by the world's biggest and baddest military industrial complex as well as Homeland security. Thankyou Amerika for protecting us-or not!

Fri, 01/27/2012 - 15:10 | 2103395 NEOSERF
NEOSERF's picture

The guiding principle of Central banks everywhere seems to be A.) why should I be the only one that is trying to do the right thing and B.) $52K per every man, woman and child in the US is no more payable than $20K or $100K so let's just go for broke...

Fri, 01/27/2012 - 15:12 | 2103399 yogibear
yogibear's picture

Bernanke and the Federal Reserve doves are looking for a chance to debase the US currency another 50% and try out the economic theories. 

Other responsible countries better hurry up and find a new reserve currency.

The Federal Reserve's dollar trash and burn policy is talored to the fiscally  irresponsible politicians in the US. 

Fri, 01/27/2012 - 15:13 | 2103402 diesheepledie
diesheepledie's picture

For starters, we need to nationalize all the 401k retirement accounts. And then move the retirement age up to 80. The idea that you should retire at 50 or 60 is obsolete in that it assumes archaic medical care.

Fri, 01/27/2012 - 15:19 | 2103436 SaveTheGreenback
SaveTheGreenback's picture

"we need to nationalize all the 401k retirement accounts." lost me there....


Govt can't do anything right except print!!

Fri, 01/27/2012 - 15:38 | 2103513 SheepDog-One
SheepDog-One's picture

Hell, why make the retirement age 80 why not just set it to 110? Then all our problems are solved. As far as seizing or nationalizing as you say all 401K accounts, thats not far off I promise you that.

Fri, 01/27/2012 - 15:41 | 2103529 ebworthen
ebworthen's picture

diesheepledie - nice sarcasm; dry, lightly salted, with just a dash of curry.

Fri, 01/27/2012 - 21:57 | 2104675 diesheepledie
diesheepledie's picture

No I AM SERIOUS. Especially the elderly. THEY are responsible for the greedy evil free lunch borrowed economy welfare state that started with FDR. They should pay. Make them  work in coal mines until they drop dead. If you can operate a walker you get a pick and shovel!

Fri, 01/27/2012 - 23:31 | 2104842 ebworthen
ebworthen's picture

Oh, I was certain it was sarcasm.

Fri, 01/27/2012 - 15:56 | 2103572 honestann
honestann's picture

Who is this "we", white man?

- Tonto

Anyone who tries to TAKE my life savings is asking for a bullet through their brain as fast as I can draw and shoot.  Fortunately for me, I won't have to take actions like that, because I'm not stupid --- I know I can't trust any bank or any financial institution, so all my savings are physical gold and other physical assets burried or held where neither you or your paid thugs could ever find it.  UP YOURS.

PS:  You must be some whippersnapper.  Take a look at a few 70 year olds some time and tell me they're all perfectly fit to work 40 hours per week.  True, some are, but all?

I should say this too.  After the predators-that-be STOLE tens if not hundreds of thousands of dollars from people over their career, those people should receive NOTHING BACK (the MAJORITY who die before 80) or just chicken feed for most others?  Up yours!

PS:  I say this even though I refuse to ever collect social security, because I understand they already spent what they stole from me, and what they would pay me is being stolen from the next generation.  I'm no thief --- THEY ARE.

Fri, 01/27/2012 - 15:18 | 2103428 Alex Kintner
Alex Kintner's picture

Incomplete analysis by Rick. He should have divided total debt by number of taxpayers who actually pay taxes. That's the real burden on actual taxpayers.

Fri, 01/27/2012 - 15:41 | 2103527 SheepDog-One
SheepDog-One's picture

If I recall correctly Ive seen that done and it puts the 'burden' on taxpayers at about $250,000 each. So in other words we're bankrupt more than ever, but now owe the govt 1 bubble McMansion for their 'gift' to us in creating all this fake 'muddle thru' at-best conditions. You getting a 2nd job to pay them back? I'm not, they'll have to kill me first.

Fri, 01/27/2012 - 15:36 | 2103502 SheepDog-One
SheepDog-One's picture

CNBC is so sophomoric and cheesy....right in the middle of Rick talking here comes 'We Got the Beat' happy happy good times fluffer bumper music? Cheeseballs.

Fri, 01/27/2012 - 15:38 | 2103518 ebworthen
ebworthen's picture

No worries.  Hyperinflation, FEMA camps, Soylent Green, and a healthy WWIII with a couple billion dead should take care of it.

Fri, 01/27/2012 - 15:39 | 2103522 Georgesblog
Georgesblog's picture

The legally correct term, United States person" is important.     U. S. citizens volunteered to be shareholders in the Federal corporation. They receive "benefits". They are obligated to fulfill the obligations, including paying the debts of the corporation. That's just one of the percs of U. S. citizenship.

Fri, 01/27/2012 - 15:44 | 2103538 SheepDog-One
SheepDog-One's picture

File your UCC1 paperwork against your own name and deny the benefits and become the creditor, waive all benefits and accept all liability. I already did it, and my registered name is simply 'DBA RainMan'.

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