Santelli On The Encumbered Youth Of The US

Tyler Durden's picture

"Sometime the math just doesn't add up" is how CNBC's Rick Santelli begins what should become must-watch viewing for the youth of America as he tries to "Wake Up Young People" to the incredible realities of the level of debt encumbrance they are being born with. The lessons we are learning from our European brothers is that no-one is going to volunteer for austerity and fundamentally, to Rick, austerity is about 'past due bills'. From birth (where the average soon-to-be-taxpayer is already encumbered by $138k) to the future (looking for growth through capital attainment and job creation), Santelli starkly looks into camera, addressing the under-27-year-old demographic and tells them straight "you are paying for a meal that previous generations have eaten". The worrying point is that in order for the youth not to revolt against this 'unfairness' they need optimism and what appears to be occurring now is a fading of that generational optimism (except for CEOs whose last name begin with Z) as joblessness, and the costs of college and healthcare anchor our traditionally upwardly mobile bias.

So how do 'we' hook the younger generations in? Student loan forgiveness? But where's that money going to come from? ...and so the ponzi feeds on itself once again. The government is promising to take care of you when it has already shown that we couldn't take care of the generations of the past. Quite a dismal picture indeed.

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Rahm's picture

Math?  What math?

kridkrid's picture

People should start with the exponential function.  It's what our debt based monetary system is predicated upon.  It's why austertiy is a cruel joke and only meant to extract more from those who have nothing else... to maintain a charade just a little bit longer.   

There is no solution.  Austerity and modern Keynesianism are two sides of the same coin.  In our system, where money is debt... virtually all money is loaned into existence.  Only to pay the principle and the interest requires ever greater amounts of debt to be generated, in the aggregate.  The system doesn't care where the debt ends up... consumers, corporations or governments... it is agnostic... it only requires that aggregate debt expands or the system will collapse.  And the system will collapse... it's only a matter of timing.  This is simple math... it's not politics... it's not even economics.  It's just math.

SHEEPFUKKER's picture

Rick speaks a lot of truths, but he does work for CNBS @ the CME so go figure. 

WonderDawg's picture

Rick should be proud. He's the smartest guy on the short bus.

Fluffybunny's picture

I have to admit, pretty funny!

WonderDawg's picture

Thanks. I kind of cracked myself up a little bit with that one.

BlackholeDivestment's picture

...if Rick had a bit bigger balls (and more of a clue?) he would start using the phrase ''Children of Moloch'', when refering to the ''Young Voters of America'', or just start drawing pictures of the Owl, the one on the private and foriegn Federal Reserve ''Debt Note'', that also says ''In [their Goldman god (Moloch) God We Trust'' , and have Moloch's Owl image, and mark of the beast, perched on the barren ''Tree of Liberty'' ...with the ''Aborted Youth'' body stuffed in it's beak  http://www.lostartsmedia.com/images/JordanMaxwell/$1%20Dollar%20Bill%20(Owl%20of%20Molech).gif 

...awe, here's labor at the Grove, all tied up and ready to burn. http://www.bibliotecapleyades.net/imagenes_sociopol/bohemiangrove02_02.jpg 

...and here's the Youth ritually being burned. http://www.youtube.com/watch?v=rAwqvjqAfkQ 

...awe, and the sweet smell of success rises to the top, like an evil scumbag brought to you by the NWO Occult Globalist freaks that established the U.N. Ageneda and built the World Trade Center. http://www.youtube.com/watch?v=GHFoUZEjuNM 

http://www.youtube.com/watch?v=7WYdAJQV100 

...on a side note, lol: http://www.youtube.com/watch?v=Ou60mbgW41U

The Alarmist's picture

There's a reason we dumbed down the kids, and it is so they can't figure out until its too late how much we've screwed them.

blunderdog's picture

You don't have to keep 'em dumb if you can throw 'em onto the wrong trail. 

Maybe there really is someone out there with PRECISELY the right list of badguys.

Bicycle Repairman's picture

Keep pumping that generational divide.  The Republican party needs a wedge issue.  Right now all they have is Romney (since thay seem determined to reject Ron).  And Romney is nothing.  And that's what the GOP has; exactly nothing.  Nothing as far as the eye can see.

blunderdog's picture

Personal note: I've enjoyed my share of harsh words thrown in your direction, sir, but I'm of the opinion that you've grown significantly within the past six months.  I wonder whether you feel it in yourself as well.

Bicycle Repairman's picture

When I see Ron Paul's success lately I feel that maybe America has grown.

aerojet's picture

Wow, you have hit the nail perfectly--no hyperbole.  The reason we have government spending going absolutely bonkers is because of what you just said--either credit (debt) expands or we hit the singularity.

kridkrid's picture

yup.  gov't spending is the easies lever to pull, because the politicians are captured by the system... not the other way around.  But gov't spending doesn't need to be pulled (or pulled with such vigor) as long as us sheeple are buying mcmansions or loading up on student loans.  Some of the "levers" are automatic.... unemployment insurance, for example... some need authorization.  But it's certainly no coincidence that gov't spending exploded as the credit market cratered.  "austerity" means shuffling the deck to insure that interest payments keep being made and the SQUEEZE is on.  Cut services, raise taxes and bleed the general population as long as you can.  It won't last forever... will we be smart enough to create an honest system on the other side?

diesheepledie's picture

"It's why austertiy is a cruel joke and only meant to extract more from those who have nothing else... to maintain a charade just a little bit longer."

I agree, austerity is not going to solve the problem. You can't fleece a bald sheep, or slaughter a starved emaciated cow for meat.

What we need to do is find a more economically sound way to make use of the bewildered herd. I believe with only a little bit of ingenuity, we could use their bodily chemicals for producing electricity - as described in the popular sci-fi movie "The Matrix".

 


blunderdog's picture

Why not just BURN THE FOOD?

spinone's picture

We already do that - ethanol

blunderdog's picture

Do what you like with yours, I've been drinkin' mine.

hic.

kridkrid's picture

tru that.  After reading my OP, I wondered if I might be coming across as a little too sympatric to the plight of those about to be squeezed.  Nice reality check.

Thisson's picture

To the contrary, there is a mathematical solution: Set the exponent to 0.

chet's picture

And what sacrifices does he call for from his own generation to cover the meal they've already eaten? 

Abitdodgie's picture

"And what sacrifices does he call for from his own generation to cover the meal they've already eaten?" None whatsoever why do we care about the young generation ,they dont

Raynja's picture

They don't give a fuck about us, but when we choose to rise, a hero in their childrens eyes
Now they give a fuck about us

aerojet's picture

He doesn't know, but I can think of something.  It rhymes with booicide.

 

 

smb12321's picture

"And what sacrifices does he call for from his own generation to cover the meal they've already eaten? "   Listen to Santelli instead of bashing him.  He's stated (repeatedly) that the welfare state framework has failed and is doomed 0 first Europe then here. 

He's called for radical reductions in spending (social programs, defense, the whole idea of the nanny state).  Essentially he is a Ron Paul with a microphone,trying to change the public's idea about the role of government while cutting through all the DC BS. I view this attempt as hopeless since the intelligentsia (MSM, politicians, academia) long ago decided the role of government was "taking care of people." 

TheSilverJournal's picture

How about some AUSTERITY for supper, kiddos. Us parents already at the real meal.

WALLST8MY8BALL's picture

Add Pepper Spray and water - makes it own sauce!

francis_sawyer's picture

Label disclaimer: (add ketchup or you'll still be hungry)...

yabyum's picture

Sounds like the last suppers to me.

Oh regional Indian's picture

Go See the UCC. A reclaim my personhood from the debt matrix movement would be a great thing for young people to try, en masse.

UC? This 138k stuff is diddle daddle. As a debt-piker, you are worth millions as Chattle. Cradle to Grave baby, cradle to grave. 

Go deeper than....garsh, can I say it....Even Santelli. He is after all Telli-ing it on the Telli-vision.

ori

/the-year-the-time-and-the-place-of-our-dam-ming/

duo's picture

$138K doesn't buy a week in intensive care. 

Clueless Economist's picture

I want to see Santelli punch Liesman right in his fat face and then slap his bald head. 

francis_sawyer's picture

What? Are your 'economic models' saying that that will be a boon to GDP?

bayoutrader's picture

I want to see Santelli punch Liesman right in his fat face and then slap his bald head.

Hell yes!!!

Beam Me Up Scotty's picture

Santelli could give Liesman the "Benny Hill" bald guy slap.  =0

Matt's picture

looks like someone posted out of character.

Broccoli's picture

I am exactly 27, does that make me a screwed or a screwer? I think Santelli is too optimistic, I'd say 40 and under won't get to eat that meal.

TheSilverJournal's picture

Basically everyone alive will feel the pain caused by an overly obese Federal government fed by the Fed, when the Fed is no longer able to feed the Federal government. The implosion of the bond bubble is not too far off. 2 weeks? 9 months? I have a hard time believing it's more than 3 years away.

Broccoli's picture

I don't place bets on when the collapse will come, that is a fools game. I believe though that one should never underestimate the capacity to kick a can. The Roman Empire took 400 years to collapse once it peaked. Spain, what 200 years? Even given our fast paced world of shortening boom/bust cycles, I wouldn't be surprised if the can was kicked out another 25 years.

Heck, we could even pull out a miracle if we ended the Fed, destroyed all the money center banks and associated vampire financialization entities, ended the welfare state, and stopped punishing producers and innovators for success. Who am I kidding, I must have been slipped PCP to have even typed the previous sentence.

TheSilverJournal's picture

No matter what a collapse must occur because the US can never pay its debts. The US can default and a restructuring of the debt will be needed, or it can default through hyperinflation. Of course, an honest default now would be a much kinder collapse.

Real interest rates are already negative and the Fed is only going to be buying more and more debt as the deficits continue to grow. Even if it's postponed as long as possible, given negative real interest rates and the rate the Fed is purchasing bonds at, it can't be much  longer.

smb12321's picture

It's like a hamster's cage where the faster he runs, the faster he has to run - and yet he stays in place.  The bond market is the key.  Interest rates are forever trapped at zero since raising them would add hundreds of billions to interest payments and force...more buying of treasuries (the hamster race). 

But the powers that wannabe are geniuses at postponing the inevitable so don't look for anything soon. 

TheSilverJournal's picture

The markets are the most powerful of the all. When the bond market gets so saturated that nobody wants to buy bonds, the money will flow into stocks and commodities, which will drive inflation, and real interest rates will become so deeply negative that investors will be force out of bonds, with the Fed's only remaining response to keep printing the money to buy the bonds, driving yields even further into negative territory...and that's how we get hyperinflation.

emersonreturn's picture

do you believet an honest default is possible? collectively are we capable of undertaking such rigorous clarity?  mayn't the greek bipolar dysphoria prove a template of our own human frailities, proclivities? 

TheSilverJournal's picture

Possible...yes. There would have to be an unreal movement that at the moment isn't forming. But you never no.

However, I'm putting the odds on hyperinflation.

in4mayshun's picture

US debt increasing at roughly $1.5 Trill per year and you thinks we can pretend another 25 years???

Riiiiiiiggghhht. (Do you work for the BLS by chance?)

Matt's picture

One 50 percent currency devaluation and suddenly GDP doubles, the budget is balanced and Debt-to-GDP is close to around 50 percent.

Of course, lack of energy independance and reliance on Chinese imports, plus global military adventurism put a real damper on this actually working out.

Rome had what, 3 or 4 hyperinflations before it collapsed?

Yikes's picture

It will take longer than you can imagine.  Just take a look at Japan.  Twenty years and still going!  Unlike Greece, we have the luxury of printing our own money and it being the resserve currency of the world.

 

That buys a lot, and I mean a lot of can kicking.

TheSilverJournal's picture

Japan also ran a trade surplus until now. The US has been running trade deficits for decades. Today, the world is awash in US Treasuries and with the rate they're being pumped out at, I can't imagine the world is going to want to take on many more of them.

LFMayor's picture

Comparisons to Japan, Argentina, East Germany, USSR are pointless.  During all these there was still sanity, or well, "stability" in the world markets.  They tanked, but like a drunk buddy, they got helped home and into bed to sleep it off by their still somewhat sober buddies.

Rome is a better comparison.  They were the biggest, baddest and largest economy going. The big difference is they took 400 years to roll over because they didn't have motor transport, telecoms, they yoke, the stirrup and other things that make our current society rise and fall at a MUCH faster rate.

When we go, and we will, it won't be slow.  It will be sudden, brutish and shocking and everyone will get a bite of the shit sandwich who's not already eating one in some festering 3rd world sore.  Those 3rd worlders are just going to fucking starve, since it's by and large the 1st world supporting populations at levels that are unsustainable w/o the support of the modern technologies of the world.

Use of and reliance upon technology and transportation will make it happen faster.  Our feckless leaders, who have lived and operated in echo chambers and never held real jobs in their lives, will only hasten and exacerbate the chaos and destruction. 

I think of window licking retards playing with submachine guns in croweded rooms.  It will end poorly.