Debt Ceiling 101, Santelli Sounds Off
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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Bernanke can print all that in 15 seconds.
Debt ceiling 101:
http://www.youtube.com/watch?v=Li0no7O9zmE
Uncle Warren will pay it all down.
Yea can't we just lower interest rates some more and pay it off at 0%?
Oh wait...
SANTELLI FOR PRESIDENT!
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
Let's just make interest rates negative and the debt will pay off itself automatically. Brilliant!
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.
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!
Santelli sounds like David Lee Roth.
Well, in fact the battle/war began around 80 years ago, and will be over within 5 years,
Bye bye dollar system, hello freegold.
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
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?
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.
I thought about your suggestion for a few minutes but I think I will accept Jubilee Debt that’s it. No compromise.
I'll take a trillion @ -.01%. Pay me to borrow!
> 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.
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.
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
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.
I'm just glad my kids are exempt from paying back that national debt of the US.
haha, i fooled them...i don't have any kids!
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?
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.
Santelli is the only true man on CNBC.
http://silverliberationarmy.blogspot.com/
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
What's a Boy Chair?
The IRS uses them. It looks sort of like a hemorrhoid donut, but it goes on your lap.
Good points, Max.....OWS is busy re-channeling the 99%'s anger. Just wait until summer - the summer of discontent is coming to America.
"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.
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
ZOG (Crony Capitalism + State Socialism) = Max Fischer.
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.
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'.
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.
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.
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.
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.
"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.
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
" 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.
Max - For what it is worth, know you aren't alone. Most people just aren't as perceptive and intelligent.
"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.
@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.
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...
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.
...Not to mention all the empty crap trailers he sold FEMA
15 milliseconds a la HFT stylee!
Rick Santelli ... the only CNBC talking head worth listening to.
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
Gas will go to 15$ a gallon if he does.
A gallon of milk will run you 30$
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.
Kyle Bass on when the shit is going to hit the fan: http://bit.ly/ywzqNI
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.
"Alot of other news burying it" - WTF!- What, did Snooki fuck another guy?
LOL. You caught that too, huh?
Yea, right. If there hadn't been other more important stories (cough, cough) the press would have been all over this. PA-LEEZE!
Translation: We've managed to bury this under a lot of other insignificant bullshit.
Gold oz: 2263.65 Euro
check goldprice.org
Can someone explain this for me? or is it a bug? (same with GBP and silver btw)
http://imageshack.us/content_round.php?page=done&l=img811/8064/eurogold0...
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.
Rick Santelli - keepin' it real! Thanks for putting it on CNBC...
Default and get it over with.
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.
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'
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.
+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.
Gulp is right.
Don't worry, folks. Your government is in control. Go back to bed, America, your government is in control again.
Americans wont be able to gulp with a boot on their throats!
I wouldn't hold it against you if you sharted.
Gulp.. I could use a big Gulp from 7-11 ... coke ..that'd be mint right now
Glad he is back. I worried they had let him go!
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.
Krugman says no problem - nothing to see here - just move along.
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?
"child" includes newborns and toddlers. You heard it here first folks, CNBC with some hard-hitting news.
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!
Good luck collecting that $52 grand from ME.
It's collected via inflation. No tax collectors necessary.
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.
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.
TheSilverJournal.com
if we continue digging deeper into that debt whole, won't we come out in China?
thats just digital money rick that dont count. i just take cash
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
+1 Right-o. Sound math. Ugly truth.
"don't ever mistake accounting for math"
True that.
Accounting is juggling numbers, math is slicing them.
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.
"Proceed with your assumptions from this starting point."
From this starting point, I assume the debt will grow.
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.
My kind of fun too. Things that go bang and lubrication....not just Brake Free either...