"This economy would have to improve dramatically to get to mediocre," warns Schiff, otherwise, as Santelli rages they would be hiking rates and talking confidently, adding that either Fed-watchers are "going along with it to earn a paycheck" - just as they did in 2008 - or "they are ignorant."
"The Fed can't raise rates because they don't want to poke too many holes in this bubble. This recovery was never real, it's phony, it's just another Federal Reserve bubble just like the one that popped in 2008, only this one is even bigger.
What we really should be talking about is not when The Fed will hike rates, but when they wll admit the economy is a lot weaker than they expected and when the next rate cut and when they will launch QE4?"
After just over 3 minutes of painful reality checks, Schiff sums up it all up perfectly, reflecting on the Sanders-Trump phenomena, "behind all those phony jobs numbers are a lot of angry Americans as everyone pretends this is a legitimate recovery."
"Why are so many Americans so upset if the 5% unemployment rate is correct? It's not!!"
And opining on the collapse of practically every other data point aside from "jobs", Santelli sarcastically screams "yeah but they are all out of the norms and should be ignored..." adding that it's "shoot the messenger" on any data item or story that does not fit The Fed's narrative...
Enjoy the following 200 seconds of truth - they don't come around too often nowadays...