Santelli Exposes The Political Fed Behind The Curtain As Romney Makes Bernanke A Target

Tyler Durden's picture

UPDATE: Added Romney's Bernanke-Busting Clip

With Romney's comments (that QE2 didn't work, that he doesn't back QE3, and that Bernanke should go) somewhat cornering the Fed-Head's decision-making, CNBC's Rick Santelli's comments this morning are even more prescient. The Chicago truth-sayer vociferously noted the increasingly politicized Federal Reserve actions, highlighting Schumer's recent 'demand' that Bernanke do his job. With Bullard this morning noting that muddle-through was not enough to justify the size of QE3 the market seems to be anticipating, it appears any actions by the Fed in the near-term can only be seen as political. The only way to justify any sizable NEW QE is then surely for the market to crash - and with Spain's no-bailout-soon, and Merkel back in the headlines, who knows what's possible. One thing is certain: under Romney the country will need a Fed Chairman. And if it is not Bernanke, despite Glenn Hubbard's promises yesterday, one very likely name will be Hubbard's close friend and co-author: Goldman's Bill Dudley, who now runs the NY Fed. One wonders which choice will be worse for the country (if not for gold longs) - the Chairsatan or Bill Dudley? Of course, look for Obama to retaliate and promise to para-drop dolla dolla billz if elected. Critically, the wizened ex-Gold trader Santelli notes the precious metal knows this and is acting as a barometer of anxiety in this stand-off.


Full CNBC Santelli Transcript:

Here is the question.
I am not sure anybody can answer it and it is couched in humor but just a bit. Is the Fed apolitical or is the fed a lot political?


Well, you know, in mid-July (and remember, November 6th, November 6th is the election), most politicians on either side of the aisle and even the middle of the road aisle (if you want to count that as a political position), they really don't want to give you too much because they want to hold back a bit - [because] the more things you say, the more ways you can get penned in by the other side.


It seems as though in mid-July in front of the senate banking committee there was some instructions in my opinion given to Ben Bernanke.


Listen to senator Schumer. "The Fed is the only game in town, so get to work, mr. chairman."


In my opinion you can say that is a bit of humor, but in the context of objectivity, if i take a step back and if it looks like a duck and quacks like a duck, sometimes it is a duck.


We know the politicians don't want to get off-center.


I think that Bernanke seems to be dragging all of this up in a timeline that certainly seems to intersect with november 6th.


I look at gold. i cut my teeth trading gold late '70, early 80s. looks like it is up $36.


What is making gold move? This is a debate on the floor everywhere.


In my opinion what makes gold move in a proactive trending way is any time the barometer of anxiety goes up.


September is approaching, Europe, you know, Mario Draghi, I don't think what he said is doable. I think what he said when he said it was absolutely brilliant. It bought them four to six weeks. You know, that might not sound like a lot to everybody, but it has stabilized the markets.


I think that gold when it corrects, when it goes from active trending based on anxieties to the upside, liquidation mode is much more random.


I think that's where everybody kind of gets off the game plan. When it goes into correction mode some people are liquidating and some people are paying other positions. In the end I think we're in the proactive trending phase and i wouldn't dismiss how much higher gold can go.


and here is Romney's Bernanke-Busting Interview (the Bernanke discussion starts at around 7:10)...


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CharliePrince's picture

wizened ex-gold trader ??    where did that come from

FEDbuster's picture

On a happier note and off topic, breaking news:

VICTORY: Circuit Court Orders Brandon Raub Released, Dismisses Case Against Marine Arrested, Detained in Veterans Admin. Psych Ward over Political Views, Song Lyrics Posted on Facebook

MillionDollarBonus_'s picture

I can't stand sycophantic libertarians that constantly suck up to rich people like Santelli, Doug Casey and Rick Rule and believe everything they say. They don't stop for second to think that they're BEING USED. Libertarians are actually being TRICKED by the rich into promoting a philosophy that allows industrial class to literally buy and sell goods and services and hire people at will without any restrictions. Libertarians don't even believe in environmental regulations because "private property" will take care of it (*LOL*). Libertarians are so deluded that they don't trust their own ELECTED government or the Federal Reserve Bank. 

malikai's picture

MDB's Greatest Hits!


MillionDollarBonus_ Tue, 05/18/2012 - 09:33 -

I predicted this from the start. FB is the AAPL, and any price below $100 is CHEAP. You may laugh at me now, but I'll be laughing when it's trading at $200 and you doomers are chasing the market.

MillionDollarBonus_ Tue, 05/18/2012 - 11:12 -

Everyone is excited about this historic IPO except for lame uptight doomer libertarians. FB is a fresh new IPO - perfect for young investors just getting started and looking to build a respectable but forward looking portfolio. This is a great day for hip, upmarket investors, but a sad day for envious and bitter and sulking rednecks.

MillionDollarBonus_ Tue, 05/22/2012 - 08:45 -

Bought another 300 shares yesterday - taking advantage of this discount. It's all about dollar-cost averaging. My average entry is now at $38 so I'm in the same boat as most of the top buy-side bidders at the original offering.

MillionDollarBonus_ Tue, 05/29/2012 - 10:42 -

$30 should be solid psychological support. Bought another 500 shares this morning - The value is off the charts here. This cannot last much longer. This is the social networking revolution - older people just don't get it.

MillionDollarBonus_ Thu, 08/16/2012 - 10:20 -

For long term value investors, this is just short-term noise. This is a great dip-buying opportunity – and honestly, who cares whether you pay $19 or $40 when the long term price target is in the $100s???

MillionDollarBonus_ Fri, 08/17/2012 - 16:32 -

You idiots talk about the sell off as if this is just normal market activity ... this is a JOKE. How the HELL can the SEC just stand by and watch while these manipulative short sellers hammer the stock into the ground???


Praetorian Guard's picture

Hahahahahaha... yea some people just don't get it...

economics9698's picture

Romney should keep his mouth shut.  You can bet QE III is coming.

MDB did good today.  I love the Libertarian jokes. 


Fukushima Sam's picture

Seriously, this is the discussion they are having? 

How about something a bit more hard-hitting, like what Romney will do with the renewal of the Fed's 100-year charter next year.

kito's picture

holy flying fiat, WAKE UP....come on people.....romney doesnt give a crap (nor do any of the repblicrats, demublicans) about issues such as the fed or who the chairman is, he CARES ABOUT PULLING RON PAUL VOTERS AS THE CONVENTION DRAWS NEAR.......and how does he pull ron paul voters??whyyyy....of course.....disingenuous bashing of bernanke and the fed.....puuuuhhhlease people, more bread and circuses...focus....focus......romney is backed by the giant sucking tentacles of goldman and other nefarious parasites in the financial world.....romney doesnt give a f*ck about what is good for the country any more than obama or any other bastard who voted for ndaa, the patriot act, the drone bill, etc....................

steve from virginia's picture




Presumably MDB was discussing the 'exciting' Facebook IPO.

Why buy that company? It doesn't make anything, it doesn't have a product. It's a transparent Ponzi scheme.

When Facebook comes out with something as useful as a vacuum cleaner, I'll buy the stock.

Bernanke is irrelevant. What will the Fed buy/lend to? Treasury markets are now near historical highs ... he could lend to Fannie/Freddie but the effect would be negligible because the Fed cannot make institutions solvent.

When the Fed can 'print' crude oil or jobs, I'll listen to Bernanke.

Stoploss's picture

They all got trouble and they know it.


WatchingIgnorance's picture

Very nice Malikai.

Watching the psychology of a troll. Very amuzing . . .

I will tell him you said hello when I am behind him at the store (just before he uses his SNAP card) . . .

reader2010's picture

Opinions = Faith = Facts

resurger's picture


Nice quotes for our resident troll

Blano's picture

Ha I don't log in much anymore but had to tonight to give you an up arrow and a thank you for the laugh.

SmallerGovNow2's picture

"Libertarians are so deluded that they don't trust their own ELECTED government or the Federal Reserve Bank. "

no, we don't ....   but it has nothing to do with delusions....

Stoploss's picture

Please provide your broker number. Since that is required under Dodd/Frank, If you are giving public trading advice, which you clearly are per Malikai, you must supply your broker number MDB, or face the wrath of your own creation.

Good luck..

NidStyles's picture

Oddly enough I only know who one of those guys are, and that's because he own's The rest of them I have no clue who they are and I've been a Libertarian for 14 years. 

Cult_of_Reason's picture

Paul Ryan and John Taylor on QE2 and the Dual Mandate

Refocus The Fed On Price Stability Instead Of Bailing Out Fiscal Policy

What do you think John Taylor as FOMC chairman means for commodities ("owning stuff") bubble?

t0mmyBerg's picture

Unless 1) Romney is a moron (possible) or 2) Obama wins (not bloody likely) or 3) Taylor refuses, John Taylor will be the next Fed Chairman.  It will mean that the Fed uses explicit rules in formulating policy.  In the current environment it means the Fed would likely have PIRP.  It would also likely begin unwinding its portfolio slowly at the margins.  These changes would mean slightly higher rates and lower money supply as the system reboots with a lag until velocity picks up a bit, and it also means Keynesians running around screaming the sky is falling.  So risk off in the near term as the dollar goes higher, meaning commodities down.

The other consequence is that treasury pays more which REALLY puts a spotlight on the US debt situation.

Cult_of_Reason's picture

Exactly, it means shorter term pain, but the right thing to do for this country future.

Bernanke is a protégée of Greenspan. After Greenspan left, Bernanke continued Greenspan's policies of catering to Wall Street.

 John Taylor is more like David Stockman or Paul Volker. He does not give a shit about Wall Street speculators.




Chief KnocAHoma's picture
  • If what you say is true sir...I like this John Taylor. Somebody put a body guard on him before the bad guys get to him.
CloseToTheEdge's picture

"That is ironic, since no one disapproved of the excesses of Wall Street in the 1980s so much as the chairman of the Fed, Paul Volcker.  At a rare Saturday press conference, on October 6, 1979, Volker announced that the money supply would cease to fluctuate with the business cycle:  money supply would be fixed, and interest rates would float."

(creating the bond 'golden age' more storing)

Liar's Poker, M.Lewis

ParkAveFlasher's picture

Repeating a comment from another thread doesn't make it more valid. 

Interest rate increases - and the implicit "show-me-your-tits" calls in all markets and relationships - put a higher value on real tits, not tissue-stuffed, not silicon-inflated, not wonder bra, real tits ... real tits being (in my analogy) real money, hard assets, viz a viz gold and silver.


Chief KnocAHoma's picture

This is all just so FREAKING funny to me. First - only the most uneducated among us would not recognize that the defacto World Reserve Currency is in fact.... GOLD.

The masses however, continue to accept and rely on unbacked fiat. Pieces of paper with numbers printed on them. We'll send you a truck load of them for that tanker of oil, or better yet, we'll just create them with a computer generated exchange of 1 and 0.

But I guess a people dumb enough to elect Obama and thrust the Kardashians to fame for being sluts is just stupid enough to rely on such a fucked system.

SmallerGovNow2's picture

that about sums it up Chief....

jerry_theking_lawler's picture

nah, I just think 90% of the 'joes' out there THINK it is already backed with gold.......

loveyajimbo's picture

Rick is the only truth teller on that lousy network...  The Bernank should be tarred and feathered...

malikai's picture

That would be great. I'm long both tar and feathers.

Kitler's picture

Tar and feathers sound nice but remember oil and poultry are trading near highs and then there is that nasty disposal issue to take care of...

Low natural gas prices on the other hand...

LFMayor's picture

My circle has been fancying Great Stuff expanding foam and Owens Corning Pink R13 glass blanket.  Should have similar effects and readily available at the home improvement store nearest you!

TwelfthVulture's picture

I'm looking at four strategic retail locations on the Beltway.  My stores will sell only two items: Torches and Pitchforks.  If things don't start to change soon, by 2020 I figure I'll be a trillionaire.

Gazooks's picture

look, ...Santelli's making a good living in the farcical melodrama of CNBC


before getting all warm and fuzzy over truthman Rick, just ask yourself; what isn't political?


truth is, nobody has the political balls to bring this house of cards down.


anybody that puts weight behind anything Romoney or his lapdog Ryan proclaim is as much a fucking idiot as the worst Obamabots.


when the music's over, you'll know what's truth

scatterbrains's picture

If he's airing this on cnbc with Santilli it's because the Bernank asked him to stage the conversation. This way when the Bernank doesn't ease it's because of the "politics"

Chief KnocAHoma's picture

I agree with your wisdom. Both sides are whores, but one whore is a bit closer to the truth and believes the best hope for the World is a thriving USA.

Just ask the rest of the planet if they are better off if our military retracted, or our influence fades.

Go ask a Jew from 1930 Poland, if you can find one.

I guess my point is, we ain't perfect, and the music will never truly stop. The song may change to music you no longer recognize, but continue it will.

Dr. Richard Head's picture

This video is no longer available.  A message has been sent to customer care team in the event there has been an error so that we may fix the problem.

I know the problem, the truth is leaking.

Vincent Vega's picture

I thought metals were up due to a strike in Africa...WTF...I'm so confused! Fuck it, drunk again tonight.

SmallerGovNow2's picture

Nice looking pup, chocolate lab?

Vincent Vega's picture

Yes. He will be 7 in October. And his name is really is Vincent Vega. You a yellow?

Vincent Vega's picture

Exactly my point. Scroll back a few articles here on ZH today and you will see: Gold and Platinum Surge as Mining Unrest Spreads.

Cranios's picture

You didn't build that - the FED made that happen!