Rick Santelli - Legend

[Phatscotty]

Ezra Klein Learns a Lesson on How Economics Work
http://www.youtube.com/watch?v=uKwWa1h7Sd4

In case you are wondering about "going back to the tape" let me just help everybody here with the February 09 'rant heard round the world' except for Ezra Klein.
http://www.youtube.com/watch?v=zp-Jw-5Kx8k

CNBC's Santelli ties Egyptian turmoil to U.S., Japanese monetary policy
http://www.youtube.com/watch?v=RReBQuXr54M

[Neoteny]

Can we trade Phatscotty for someone? Like, I'll keep a Guantanamo prisoner in my backyard if we can get Cuba to take him. Or a serial killer from Europe or something?

[Phatscotty]

Can we trade Phatscotty for someone? Like, I'll keep a Guantanamo prisoner in my backyard if we can get Cuba to take him. Or a serial killer from Europe or something?

[Phatscotty]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

[Neoteny]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

It's more like I have the ability to create and destroy money and I keeps treating national finances like a household (or some other inane metaphor like a fire or a cliff) because I'm fixated on how the gold standard works and can't wrap my head around fiat currency and the mechanisms government has to control the growth of the economy.

It's ok though. I voted in a bunch of other morons who are as clueless as me.

[thegreekdog]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

It's more like I have the ability to create and destroy money and I keeps treating national finances like a household (or some other inane metaphor like a fire or a cliff) because I'm fixated on how the gold standard works and can't wrap my head around fiat currency and the mechanisms government has to control the growth of the economy.

It's ok though. I voted in a bunch of other morons who are as clueless as me.

Yeah look at all those two representatives* who are fixated on the gold standard and want the government to stop spending money!!!

* Ron Paul and Rand Paul. The rest are Republicans who have no problem with fiat currency and deficit spending (as long as the deficit spending is for the military and business, and not poor people).

[Neoteny]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

It's more like I have the ability to create and destroy money and I keeps treating national finances like a household (or some other inane metaphor like a fire or a cliff) because I'm fixated on how the gold standard works and can't wrap my head around fiat currency and the mechanisms government has to control the growth of the economy.

It's ok though. I voted in a bunch of other morons who are as clueless as me.

Yeah look at all those two representatives* who are fixated on the gold standard and want the government to stop spending money!!!

* Ron Paul and Rand Paul. The rest are Republicans who have no problem with fiat currency and deficit spending (as long as the deficit spending is for the military and business, and not poor people).

I was referring actually just to Phatscotty's unhealthy obsession with gold. Everyone else is just clueless. Even the ones who are ok with deficit spending seem to be unable to grasp the logical underpinnings of the theory (as in: why are we still accumulating debt?).

EDIT: goddamn phone...

[thegreekdog]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

It's more like I have the ability to create and destroy money and I keeps treating national finances like a household (or some other inane metaphor like a fire or a cliff) because I'm fixated on how the gold standard works and can't wrap my head around fiat currency and the mechanisms government has to control the growth of the economy.

It's ok though. I voted in a bunch of other morons who are as clueless as me.

Yeah look at all those two representatives* who are fixated on the gold standard and want the government to stop spending money!!!

* Ron Paul and Rand Paul. The rest are Republicans who have no problem with fiat currency and deficit spending (as long as the deficit spending is for the military and business, and not poor people).

I was referring actually just to Phatscotty's unhealthy obsession with gold. Everyone else is just clueless. Even the ones who are ok with deficit spending seem to be unable to grasp the logical underpinnings of the theory (as in: why are we still accumulating debt?).

EDIT: goddamn phone...

Goddamn phone indeed (I was all like, "what" and then I was like, "Maybe he did a Player thing there.")

I also do not get the conservative obsession with gold. Frankly, at this point, they are just getting taken advantage of by enterprising individuals ("Sell me your gold!" or "Buy my gold!").

[Phatscotty]

http://www.youtube.com/watch?v=Ne9VW_X9Pgo

Rick Santelli exploded this morning and says we could have been rated BBB!

It's like my wife started spending 30% more this year than last year and her answer is for me to get 2 more jobs!

It's more like I have the ability to create and destroy money and I keeps treating national finances like a household (or some other inane metaphor like a fire or a cliff) because I'm fixated on how the gold standard works and can't wrap my head around fiat currency and the mechanisms government has to control the growth of the economy.

It's ok though. I voted in a bunch of other morons who are as clueless as me.

Yeah look at all those two representatives* who are fixated on the gold standard and want the government to stop spending money!!!

* Ron Paul and Rand Paul. The rest are Republicans who have no problem with fiat currency and deficit spending (as long as the deficit spending is for the military and business, and not poor people).

I was referring actually just to Phatscotty's unhealthy obsession with gold. Everyone else is just clueless. Even the ones who are ok with deficit spending seem to be unable to grasp the logical underpinnings of the theory (as in: why are we still accumulating debt?).

EDIT: goddamn phone...

oh yeah, those gold bugs, they have been the most clueless.......riiiiiiggggghhhhhttttt

[Neoteny]

Riiiiiiggggghhhhhttttt

[thegreekdog]

oh yeah, those gold bugs, they have been the most clueless.......riiiiiiggggghhhhhttttt

If you had purchased gold ten years ago, I would be with you on this one. But if you're purchasing gold now, you're making an investment in something that has already increased its value. It's like when someone buys a stock that has just shot up 10 points expecting it to shoot up 10 points again the next day.

There's that (i.e. standard investment practices) and then there's the idea that it seems to me most people that are buying gold right now are buying it because they think the economy is going to crash and burn and gold is the safest investment. Two problems with this:

(1) What makes you think gold will be the most valuable resource if the economy crashes and not something like food or clothing or housing or guns? And don't say "because gold will buy those things" because that's stupid.

(2) Do you have this gold in your possession right now? I know you have title to the gold, but do you have it in your possession, like in your house or on your person? Because if you don't, and if the gold is possessed by some investment company somewhere, what makes you think that the investment company is going to deliver the gold to your door in the event the economy collapses? Because you paid them in paper currency for it two years ago? Are you going to call the police?

[Phatscotty]

oh yeah, those gold bugs, they have been the most clueless.......riiiiiiggggghhhhhttttt

If you had purchased gold ten years ago, I would be with you on this one. But if you're purchasing gold now, you're making an investment in something that has already increased its value. It's like when someone buys a stock that has just shot up 10 points expecting it to shoot up 10 points again the next day.

There's that (i.e. standard investment practices) and then there's the idea that it seems to me most people that are buying gold right now are buying it because they think the economy is going to crash and burn and gold is the safest investment. Two problems with this:

(1) What makes you think gold will be the most valuable resource if the economy crashes and not something like food or clothing or housing or guns? And don't say "because gold will buy those things" because that's stupid.

(2) Do you have this gold in your possession right now? I know you have title to the gold, but do you have it in your possession, like in your house or on your person? Because if you don't, and if the gold is possessed by some investment company somewhere, what makes you think that the investment company is going to deliver the gold to your door in the event the economy collapses? Because you paid them in paper currency for it two years ago? Are you going to call the police?

I could refer you to my old blog that started in 2004, at which point you could easily tell when it was I got into anything according to an entire list of specific sectors.

There are so many things to comment on, from Gibsons paradox and the Cliton-Greenspan-Rubin fix, to the yen carry trade, to the undervalued/intentionally manipulated theories (for example there are more paper ounces of silver than there is silver for purposes of crippling volume short sales). Gold is the safest. It might go up or down in price, but it will always hold value, even if the gov't cannot rob gold of it's value. It can make it illegal but you can easily jump the USA fence built to keep you in and get cash for your gold in any currency in the world. Uncertainty, geopolitics, war/terrorism, CURRENCY/DEBT ISSUES.

1)in your worst case example (barter system means total currency collapse) yes gold and most likely silver would be a universal mode of commerce, while also other highly tangible assets like sugar or water or gas etc would also be a mode of exchange. In short, Gold is money. Call it what you want. I suppose we would be accepting Cando's far before that time tho.

2) I only wish I had some in my possession. I had a couple silver dollars rolling around at one time and they were stolen or lost a long time ago. The concerns you state are all valid, and metals companies/mines have a long history of fudging books and numbers and provable reserves etc. People have to do their due diligence and I would advise that gold, silver, food, or anything for that matter not be counted as yours unless it's in your hands/extremely liquid. The same can be said about keeping money in the bank during the wrong weekend, ask anyone in Argentina. Physical is the way to go, but if you are up to a challenge and have balls you can get into short term gold stocks. There are a few out there who are run extremely well and not leveraged to the hilt or caught up in reverse hedging their own product. In the event that gold is not delivered (as will happen in the end no doubt) then you are going to be wishing you had taken delivery on it at a sooner time. This is the reason we can not longer afford to be ignorant. Things move too fast and you have to be paying attention otherwise you might be out on your ass.

Overall, the goldbugs have been right about almost everything, usually in advance even. They are still harping on the same things, for the same exact reasons, now as in 1996,2000, 2004, 2008. Just ask Ron Paul.

[Phatscotty]

Rick Santelli takes on guest For Calling Tea Partiers 'Freaked Out White Men Who Are Unemployed'

http://www.youtube.com/watch?v=JCEzV_-Qyj4

"The last person who said that was King George"

Rick Santelli vs. Matt Lauer (bonus, Dylan Ratigan backs Santelli)

[PLAYER57832]

oh yeah, those gold bugs, they have been the most clueless.......riiiiiiggggghhhhhttttt

If you had purchased gold ten years ago, I would be with you on this one. But if you're purchasing gold now, you're making an investment in something that has already increased its value. It's like when someone buys a stock that has just shot up 10 points expecting it to shoot up 10 points again the next day.

Yep, we were scouring our house for gold to sale. Unfortunately, I have never been the jewelry "type".

[Phatscotty]

oh yeah, those gold bugs, they have been the most clueless.......riiiiiiggggghhhhhttttt

If you had purchased gold ten years ago, I would be with you on this one. But if you're purchasing gold now, you're making an investment in something that has already increased its value. It's like when someone buys a stock that has just shot up 10 points expecting it to shoot up 10 points again the next day.

Yep, we were scouring our house for gold to sale. Unfortunately, I have never been the jewelry "type".

and to add to that. What I meant with the original post here is the reasons why gold is going up, and the reasons why goldbugs could see this coming all the way, and the fundamentals that are understood in order to make accurate predictions.

Rick Santelli Educates a Clueless Chris Matthews

[Phatscotty]

Duct tape is holding our economy together


Debt and our children

CNBC’s Rick Santelli, the man commonly credited with sparking the Tea Party, on Monday spoke with Rep. Allen West (R-FL), a Tea Party favorite, about revitalizing the U.S. economy.

a few hints dropped on the Global QE coming our way at the end of the week

[BigBallinStalin]

Haha, I never heard of Rick Santelli.

He's an interesting guy

[Phatscotty]

Haha, I never heard of Rick Santelli.

He's an interesting guy

Are you seriously telling me you have never seen this one? Or maybe you didn't realize it was the same guy...?

February-ish, 2009


Nobody knows for sure, but this was definitely one of the first shots heard around the world, and definitely encompasses what allllll this is alllllll about

[Nola_Lifer]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

[BigBallinStalin]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

You'd probably need a nuclear war to happen, in order to justify investing in a farm for that reasoning. All other exogenous shocks* would still leave plenty of capital for the division of labor to continue, thus sidestepping the regression to subsidence agriculture.


*another exception: hostile alien invasion, the outcome of which is similar to a nuclear war.

[Nola_Lifer]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

You'd probably need a nuclear war to happen, in order to justify investing in a farm for that reasoning. All other exogenous shocks* would still leave plenty of capital for the division of labor to continue, thus sidestepping the regression to subsidence agriculture.


*another exception: hostile alien invasion, the outcome of which is similar to a nuclear war.

Pretty sure there were lots of starving people during the Great Depression.

[BigBallinStalin]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

You'd probably need a nuclear war to happen, in order to justify investing in a farm for that reasoning. All other exogenous shocks* would still leave plenty of capital for the division of labor to continue, thus sidestepping the regression to subsidence agriculture.


*another exception: hostile alien invasion, the outcome of which is similar to a nuclear war.

Pretty sure there were lots of starving people during the Great Depression.

Sure, but that doesn't change the fact that gold was still extremely useful--even during those disastrous times. Its relative value compared to the US dollar was immense. Gold could buy you many things during that time because the price of US paper dollars were highly inflated.


For your scenario about gold being useless to be true, then we'd have to have some disaster where only subsistence agriculture were the only means to live, which means that nearly all stocks of capital would have to be destroyed. But even in a barter economy, gold still has its uses as a medium of exchange. See Carl Menger's the Origin of Money.

[Phatscotty]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

how are you going to acquire seeds and plows and horses? What if one of your pigs die unexpectedly? What if you have your record crop, just at the same time everyone else has a record crop the same as yours? What if the blacksmith has enough of your crop to last him through the year, and won't take corn as payment? Because if nobody had food, then that would mean you too, because you would have no way to protect it.

[Nola_Lifer]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

how are you going to acquire seeds and plows and horses? What if one of your pigs die unexpectedly? What if you have your record crop, just at the same time everyone else has a record crop the same as yours? What if the blacksmith has enough of your crop to last him through the year, and won't take corn as payment? Because if nobody had food, then that would mean you too, because you would have no way to protect it.

Seeing that my crop was already planted, I'd get the seeds from the crop that was planted. Yes, you don't have to buy seeds they come free. I never said I was trying to sell my crops only to feed myself. I can preserve the extra. What about the blacksmith? How do you know I can't protect it. Do you know where my farm is? Do you know where my guns are?

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

You'd probably need a nuclear war to happen, in order to justify investing in a farm for that reasoning. All other exogenous shocks* would still leave plenty of capital for the division of labor to continue, thus sidestepping the regression to subsidence agriculture.


*another exception: hostile alien invasion, the outcome of which is similar to a nuclear war.

Pretty sure there were lots of starving people during the Great Depression.

Sure, but that doesn't change the fact that gold was still extremely useful--even during those disastrous times. Its relative value compared to the US dollar was immense. Gold could buy you many things during that time because the price of US paper dollars were highly inflated.


For your scenario about gold being useless to be true, then we'd have to have some disaster where only subsistence agriculture were the only means to live, which means that nearly all stocks of capital would have to be destroyed. But even in a barter economy, gold still has its uses as a medium of exchange. See Carl Menger's the Origin of Money.

Even if I have all the gold in the world, you'd be a dumb farmer to trader your food for something you can't eat unless you have excess which you should store or preserve through a variety of ways.

[BigBallinStalin]

If the economy tanks, I'd rather have a farm with my own well with crops already planted. Gold won't mean a thing if your starving to death and no one has food.

You'd probably need a nuclear war to happen, in order to justify investing in a farm for that reasoning. All other exogenous shocks* would still leave plenty of capital for the division of labor to continue, thus sidestepping the regression to subsidence agriculture.


*another exception: hostile alien invasion, the outcome of which is similar to a nuclear war.

Pretty sure there were lots of starving people during the Great Depression.

Sure, but that doesn't change the fact that gold was still extremely useful--even during those disastrous times. Its relative value compared to the US dollar was immense. Gold could buy you many things during that time because the price of US paper dollars were highly inflated.


For your scenario about gold being useless to be true, then we'd have to have some disaster where only subsistence agriculture were the only means to live, which means that nearly all stocks of capital would have to be destroyed. But even in a barter economy, gold still has its uses as a medium of exchange. See Carl Menger's the Origin of Money.

Even if I have all the gold in the world, you'd be a dumb farmer to trader your food for something you can't eat unless you have excess which you should store or preserve through a variety of ways.

No one is going to trade something on which they survival depends on; however, if they can fetch a good price for it, they may lower their standards. So, let's ignore the unlikely scenario that one person could have all the gold in the world, and let's focus on "you'd be a dumb farmer to trader your food for something you can't eat." This isn't true, because duh, no one eats gold, you use it as a medium of exchange--in this scenario.

You'd be a dumb farmer to not trade for something which you could immensely profit from, thus offsetting the marginal costs of having a little less food.