Santelli On Liquidity And More Central Bank 'Counterfeiting'

Tyler Durden's picture

In a little under two-and-a-half minutes, CNBC's Rick Santelli surveys the landscape of just what exactly is Quantitative Easing, why more debt does not solve the problem of too much debt, and why these actions (as even Frau Merkel has ascribed concern) are nothing but counterfeiting. He rhetorically questions how the printing of more money is the way to solve our 'problems', adding via Rick Rule, that "there's been no shortage of cash in the system; but one wonders [given] this economy seems based on liquidity, whether building an economy on what is, in fact, counterfeiting is very good for the economy in the long term?"

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LawsofPhysics's picture

Ron Paul and others pointed this out 35 years ago Rick.  Ask yourself, are you still accepting the paper?  

Turn those paper promises into something real Rick, and fast.

Uncle Remus's picture

That make Romney/Ryan like Leningrad Cowboys. Not real, but put on kind of good show.

francis_sawyer's picture

More like 'clowns' from where I sit... But I'll buy your premise...

ratso's picture

Santelli, Romney, Pribus et al are afraid of QE because if will boost the economy before the election!

So, let's get real about why Bernake is being hammered and QE is being questioned.

Kitler's picture

Counterfeit economies require frequent injections of counterfeit money to remain fraudulently healthy.

It's simple Kleptonomics 101 actually, it's all good until it isn't and then there will be a lot of crying.

fourchan's picture

counterfitting works for 100 years evidently if the world goes along with it, give or take a couple years.

dont worry its almost over. 97 years and counting.

James's picture

Not trying to be snarky fourchan but it is the DOLLAR that has lost NINETY-SEVEN %.

The counterfeiting has gone on for ninety-nine years.

Debt-Is-Not-Money's picture

For sure, but let's not overlook our coin. We used to have silver coinage but now we have plated base metal that looks like silver - is that also not the definition of counterfeit?

Who is responsible for aprehending counterfeiters? The Secret Service, that's who! That is if they have time to spare whoreing in Columbia or getting flat assed drunk the night before the Kennedy assassination. Is there a sitting Federal Grand Jury somewhere in this country that has the balls to indict all of them for violating their oath-of-office (a class 1 felony)?

sun tzu's picture

QE boosts the economy? Gee, so simple. All we need is QE to infinity and the economy will be booming forever with no fatal side effects. 

Uncle Remus's picture

You've never seen a pic of the Leningrad Cowboys...

They're a "rock band" that sprung out of a TV show (or maybe a movie) in Russia. Sound familiar?

Although, they do a pretty mean cover of "Stairway to Heaven" with The Red Army Choir doing backup vocals.

ratso's picture

The Lenningrad Cowboys are actually a famous Finnish rock group.

Uncle Remus's picture

I stand corrected on their country of origin.

FreedomGuy's picture

It is not only counterfeiting, it is theft. At it's core, money is a way to trade your labor and products with others. When you do QE, counterfeit or create fake money you trade something of no value for something of real value.

Put another way, if you are a doctor and I come to see you, I offer to trade my money which is a receipt for my work for your work. We trade our labor at an agreed on rate. I trade a hundred dollars of my work for the same amount of your work, even if it takes me a whole day to earn that and it takes you one hour. If someone creates money that has no value and no products or services behind it, they steal. First, they lie and say they are trading me some work that was never done and then they steal mine by printing these fake work receipts known as money. It is immoral and it is also how inflation is created. Those fake receipts dilute the value of the real work as they work into the system.

Another example would be playing Monopoly and secretly taking $5k from the bank when no one is looking. You starting buying properties at the old prices with fake money you did not earn. The fake money then works its way through the game and the property prices rise. You win because you used the unearned money to buy things at the old prices and then you drove up the prices of everything else...for no work at all.

This is legal for government and it is why the large financial houses stay very close to the sources of the "fake" money while you and I have to actually earn real money and trade with each other. It is why playing with money is so much easier and profitable than actually making anything from a good cup of coffee for people to running a functional railroad. The paper-FRN game pays way better. It is also why we seem to be getting poorer over time even with increased productivity and two incomes. Fake money is diluting your earning power.

One day, maybe we can jail or exile these bastards with their financial alchemy.

tbone654's picture

Monopoly, a great analogy...  you should pass Go to inject money into the game/economy...  without that concept, there is no market, it's just manipulated pricing...

philosophers bone's picture

Or win second prize in beauty contest

ZeroAvatar's picture

If only Bernanke would go directly to jail.............

FreedomGuy's picture

I have wondered if the world economy goes into a crash and governments fall if there would ever be a sort of Financial Nurembury trials. I doubt it because there would have to be enough people who actually understood what went wrong. One can hope, though.

BlackSunshine's picture

You forgot that there is 3 types of labor, labor that creates (engineering design, farming, etc), labor that adds value, and labor that transfers wealth (laywers. medical doctors?).

So explain how one hour of wealth transfer labor equates to 10 hours of product producing labor? That is an issue in itself. Doctors used to be laughed at because they required no education, about 200 years ago (look it up), but now they are revered as experts in medicine, but they are still pretty quacky overall, even with years of practice and education.

Bankers used to be looked at as pimps, and con artists (look that up as well) but now they are a modern knighthood onto itself.

So tell me again, how does trading labor make any sense? It doesn't. The population must be given the illusion that bankers run the world, that money runs the world, and that doctors are worth an hour of labor that a farmer takes 10 hours to produce.

The entire system is an illusion.

Better_late_than_never's picture

When you are dying, you might be interested in trading 10 hours of your past labor (you had saved) for one of the doctors hours right now. If you're a fool and didnt save any of your labor, you call the banker. You hope the banker has investors that want a return on their investment so he can loan to you... Thats the sane world. Unfortunatly, that no longer exists. Savings has been replaced by credit, mandated by the government, and provided by the bankers. The Government gets first dibs on the credit before you do so they can buy bombs, votes, and workers. They encourage you to pay off the debt with the illusion of choice between red and blue. As the credit expands, your wallet slowly gets lighter. You blame it on team red if you are on team blue or vice versa. It works for quite a long time until all the vaule gets sucked out. Then, all the monopoly money goes back in the box and they start over.

Its kinda like being at a poker room. They just take a buck or two out of every pot and nobody really notices because they are winning and losing hands of hundreds of dollars. But, of course, if the game keeps going all day and night, sooner or later all of the chips on the table are gone and people have to get out their wallets and buy more chips. Nobody notices because people are always getting up and new people are sitting down. And its fun because they serve drinks and have football on the tv's.

Imagine if they changed the rules at the poker room and allowed you to buy poker chips on a tab. Ha ha, how long is that game going to last? And, if you are playing at that table, how long are you going to play before you cash out? At the end of that game, someone is getting their ass kicked in the parking lot.        

sun tzu's picture

Who looks at bankers as kings?

We'll see what you do when you get old and start having heart problems or if you ever break your arm or leg. The medicine of 200 years ago isn't the same as medicine today. A gunshot wound during the Civil War used to mean death or amputation. Today they can put you back together while saving your limbs. While some modern medicine is quack, you can't beat the West for trauma care. 

FreedomGuy's picture

There really are not three types of labor. Labor is human strength and ingenuity applied to almost anything in life. Doctors and Medicine produce tremendous value given our increasing life spans despite being overweight and inactive. Doctors used to earn less than teachers in the 1930's because they were worth less on the market. They could diagnose very well but effective treatments were very few.

You focus, like many on just tangible hard goods. That is a logical error. A sales trainer who improves sales by 25% in a company through better training does bring real value. Bankers who evaluate collateral, credit worthyness and make investment decisions as well as store your PM's and car titles benefit the bank and you, too.

There is non-productive labor in the sense that your DMV is nearly a total loss as we have to expend our labor to do then thousand things with our autos and we also have to pay the government workers who harass us. However, in the micro, they still produce something with their time and they trade you for it.

The point is that simply printing and pumping money with no real backing into the system is theft. It is cheating and it is stealing and the benefits do not go to the producing class. You and I have to bring wealth into the world and trade it, but they fake and steal it. I would love have Nuremburg trials for the bastards one day.

Gamma735's picture

This is why when the public finally catches on, then prices begin to rise in anticipation of more money printing and that begins the runaway inflation.

YouAreBliss's picture

GOP plan to balance the budget (no need for the Fed to print):

1) Eliminate the defense cuts in the sequester.

2) Make the bush tax cuts permanent.

3) Pass new tax cuts for the wealthy banksters

4) Increase enforcement budgets to fund new Social Conservative agenda; ie, make now legal activities illegal like: all birth control,all abortion, all gambling, all pornography, alcohol consumption, coffee consumption, non-magic pants wearing, etc...need at least another 100,000 SC (SocCon) police and judges - not to mention the increased funding for another million in prison (Of course run by BAIN/GOLDMAN Prisons-r-us Inc. headquartered in Qatar).

And of course absolutely no new taxes!

We can make it up in growth - (well not the growth of the wealthy and corporations -they have a 0 cap gains/divid rate, and the rest is run through tax sheltered off shore accounts.)

I can almost see the Ryan budget balanced now - in 2099!  After the enactment of the GOP re-enslavement act of 2079.

We can rejoice - Free of Freedom at last!

Thanks Rick!

sun tzu's picture

democrats plan to balanced the budget....

waste money on scams and kickbacks

waste even more on scams and kickbacks

bail out bankers, insiders and failed crony companies


4 years of $1.5 trillion deficits. thank the lord obama for his fiscal responsibility

that terrible bush had $400 billion deficits

YouAreBliss's picture

Stop watching Fox-aganda moron and get your facts straight.

Well here are a few facts for your Sarah Palin sized brain:

Of the last 7 Presidents Bush II had the third highest rate of growth in per capita government spending

Nixon-Ford had the highest, close behind REAGAN, then BushII.

The lowest three:

Clinton, then Obama then Carter.


You see wars on the other side of the planet are fucking expensive - and the GOP love them!  But despite all their rhetoric they love BIG

Government - growing it in almost every way possible.

Another great article from Libertarian think tank Reason:


Bush Was a Big-Government Disaster He expanded the state, and the idea that the state is incompetent

"Bush...During his first four years in office—a period during which his party controlled Congress—he added a whopping $345 billion (in constant dollars) to the federal budget. The only other presidential term that comes close? Bush's second term. As of November 2008, he had added at least an additional $287 billion on top of that (and the months since then will add significantly to the bill). To put that in perspective, consider that the spendthrift LBJ added a mere $223 billion in total additional outlays in his one full term...."

"...If spending under Bush was a disaster, regulation was even worse. The number of pages in the Federal Registry is a rough proxy for the swollen expanse of the regulatory state. In 2001, some 64,438 pages of regulations were added to it. In 2007, more than 78,000 new pages were added. Worse still, argues the Mercatus Center economist Veronique de Rugy, Bush is the unparalleled master of "economically significant regulations" that cost the economy more than $100 million a year. Since 2001, he jacked that number by more than 70 percent. Since June 2008 alone, he introduced more than 100 economically significant regulations..."

Nixon added the EPA, the ERA, and many new government agencies. 

Bush II added the worst of the worst The Beloved Dept of Homeland Security.

Or how about from Wiki answers:

Which president grew the size of government the most?


Answer: Bush and Reagan


Read more: 








FreedomGuy's picture

Let's see, Wilson, a Democrat got us in WWI. We entered WWII under FDR. We started Vietnam under JFK, expanded under LBJ, got out under Nixon. Bosnia was Clinton. Desert storms were under two different Bush's. Okay, yes it is the Republicans that love war. Yup, that's the evidence.

Second, I will categorically agree that no matter who is President government grows. I will remind you that under Reagan we had Democrat Senate and Congress most of the time while under Clinton we had a Republican house and senate. For a short while Bush had it all then lost it.

With the exception of Reagan, there has not been a single President ideologically opposed to the growth of the bureaucratic-collectivist state. I do not think Romney has any problem with it, either. He will run it better than the moron currently in office. However, if he does the hard things that are required he will become very unpopular while things improve. Then we will elect another whiney juvenile Democrat who wants to be nice with other people's money again.

Jlmadyson's picture

And when it hits the capital wall it will all fall apart.

Also Tsipras is right. They are hanging Greece now with every headline that hits. Clearly they do not have any answers and very little time now.

They all chant together; No more!

The end game is here.

Temporalist's picture

The fiat is only counterfeit if you are the last one to accept it.  Bagholders unite!

francis_sawyer's picture

Joo confetti bitchez!... This 3 card monte is as old (probably older) as/than anything written...

Sofa King Confused's picture

Hmm...I thought that was illegal....guess not.  Anyone know where I can find cotton fiber paper?

TrustWho's picture

If you want to legally counterfeit, got to be a member of Fed club,

If you want to legally steal, got to be member of TBTF bank club,

If you want to legally practice organized crime, got to be member of US/state justice clubs,

If you want to make a fortune from legal bribery, got to be member local/state/federal legislative/executive/judicial clubs.

Sorry to see the morality of our leaders be corrupted by money, but just what happens once you cross the line and become a Banana Republic.  

madcows's picture

Printing does 3 things for them:

1   It makes them look like they are doing SOMEthing instead of watching Rome burn.

2.  It buys them Time for the economy to come around and magically grow itself out of debt.

3.  It creates inflation, which helps reduce the debt load.

In reality though, the Gov just keeps borrowing and going further into debt.  No fix at all.  The real fix will come when the gov balances the budget.  Of course, Nancy Pelosi won't even pull a budget together, never mind balance one.  There in lies the real problem, Polit(Corrupt)icians.

LawsofPhysics's picture

There isn't enough collateral on the fucking planet to cover the total debt outstanding.  Growth is dead and by default or hyperinflation so is all fiat.

Still amazes me how long "mark to fantasy" accounting has been allowed to continue.

Hype Alert's picture

one wonders [given] this economy seems based on liquidity, whether building an economy on what is, in fact, counterfeiting is very good for the economy in the long term?"



They can't undo Mark to Fantasy accounting until the debt is inflated into irrelevance.

iDealMeat's picture

+1, Yup..  bout' 100 Trillion in assets world wide. CDO'd and levered into well over a quadrillion in derivatives.  Soon we're talking about some real money..


101 years and counting's picture

"3. It creates inflation, which helps reduce the debt load."

Really?  the US hits $16 trillion this week.  does NOT seem to be going lower to me.

Brazillionaire's picture

That's because $16 trillion is still considered a lot of money. The trick is to make it where it is not. 

Debt-Is-Not-Money's picture

"The real fix will come when the gov balances the budget."

How can the budget be balanced if one is never passed???

Abraxas's picture

CNBC? Why is anybody watching this crap?

KingTut's picture

Real Question: How does Santelli stay on the Air?

Numerous "guests" have been removed from the list because they said things not half  as inflamatory as Santelli.   

Dr. Engali's picture

CNBS has to have their one token voice of descent so they can have the appearance of being objective.

jcaz's picture

Yep- just a matter of time before Santelli angers The Mighty Oz and disappears-  fun to watch him work it while he can.

francis_sawyer's picture

If he EVER says "Joo", or mentions the Apartheid State of Israel... It'll be lights out 'subito'...

He hasn't crossed that Rubicon yet... Which is the REAL Rubicon... As long as criticism is nebulous, he can be paraded out there to make it seem like there's a dissenting voice on the subject... That pacifys the mob...

Trust me... If he ever accidentally 'whispers' joo... We'll find out the next day that he had a mental breakdown, was on heavy anti-depressant meds, & was in to kiddie porn...

Amagnonx's picture

Kiddie porn now trumps the mail bomb, because it can be downloaded remotely onto your PC.  I'd be guessing 99% of the time you heard about it, it was a bomb.

piliage's picture

The traders on the floor love him. He has credibility and gets great inside scoops, so as long as he doesn't shout "Jesus is a goat fucker" or some such, he'll stay around.


francis_sawyer's picture

that's pretty much what I just said...

spastic_colon's picture

notice how they call everything he says a "rant".....immediately trying to discredit him