• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...
  • Gold Money
    05/03/2016 - 11:35
    Crude oil time-spreads have completely dislocated from inventories. Historically, such dislocations have proved to be short lived. We expect that either spot prices will sell-off again or the back...

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).

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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

SANTELLI FOR PRESIDENT!

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.

TheSilverJournal.com

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

Red,

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.

 

http://silverliberationarmy.blogspot.com/

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

Erable,

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

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