Santelli's Rant on More Quantitative Easing (calls it counterfeiting)

CNBC ^ | 27 August 2012 | Rick Santelli

[Lorianne]

Video

Transcript:

other reasons, too, which we'll talk about later. cme group, rick santelli. looking at some long-term effects of qe. indeed, there is another name for qe. and we'll get to that momentarily. one of the great things about the human race is they can assimilate and accommodate. we talked about the swiss psychologist in the 1930s, the 1960s, really doing a lot of work here. what it simply means is that we're very adaptable as humans. i think quantitative easing fits into that. it's something that really doesn't seem like it's the answer for problems, printing more money, printing more debt, cring debt to solve a debt problem. nonetheless, we've come very familiar with it. as a matter of fact, in the wall street journal today there was an article talking about exactly that topic. now, today, we had a gentleman on who in canada, when he talks, commodity traders listen. rick rule is his name. he said something interesting today. let's listen to rick rule. there's been no shortage of cash in the system. but one wonders if this economy is based on lick kwidty whether building an economy on what is, in fact, counterfeiting is very good for the economy in the long term. now you know the word. counterfeiting. i'll tell you, it really struck me when i heard rick rule on squawk box today use that word. because on section a8 in the wall street journal, angela merkel cautious on criticism of greece, she specifically on ard television sunday night in germany talked about this topic with reference to a bavarian conservative politician. liking the bond buying by the ecb to counterfeiting. so i ask you, it is counterintuitive that by printing more of these, we're going to take care of a problem created by printing too many of these. but nonetheless whether it's bund -- there's a lot of people that think the medicine of quantitative easing is addictive and a bit dangerous. just now add counterfeit to that long list. it might feel comfortable to us. but not everybody is going to accommodate that type of strategy. back to you. interesting parallel. of course, every counterfeiter will tell you that their very activity implies there is a market for those counterfeited goods. which i imagine you'd agree

[edboock]

Rick Santelli is right, as usual. Rick doesn’t suffer fools gladly, and shouldn’t. I expect him to also keep talking about John Corzine and his illegal activities as head of MF Global. A lot of the traders he knows and is surrounded by during his daily rants were hurt by MF Global. He’s giving air time to an attorney who is going state to state to each Attorney General to persuade them to prosecute Corzine. Someone on this forum said Santelli doesn’t have the juice. I beg to differ.

[BenLurkin]

Rick Santelli:

Looking at some long-term effects of qe. indeed, there is another name for qe. and we’ll get to that momentarily.

One of the great things about the human race is they can assimilate and accommodate. we talked about the swiss psychologist in the 1930s, the 1960s, really doing a lot of work here. what it simply means is that we’re very adaptable as humans.

I think quantitative easing fits into that. it’s something that really doesn’t seem like it’s the answer for problems, printing more money, printing more debt, cring debt to solve a debt problem.

Nonetheless, we’ve come very familiar with it. as a matter of fact, in the wall street journal today there was an article talking about exactly that topic. now, today, we had a gentleman on who in canada, when he talks, commodity traders listen. rick rule is his name. he said something interesting today.

Let’s listen to rick rule. there’s been no shortage of cash in the system. but one wonders if this economy is based on liquidity whether building an economy on what is, in fact, counterfeiting is very good for the economy in the long term.

Now you know the word. counterfeiting.

I’ll tell you, it really struck me when i heard rick rule on squawk box today use that word. because on section a8 in the wall street journal, angela merkel cautious on criticism of greece, she specifically on ard television sunday night in germany talked about this topic with reference to a bavarian conservative politician.

liking the bond buying by the ecb to counterfeiting.

So i ask you, it is counterintuitive that by printing more of these, we’re going to take care of a problem created by printing too many of these.

But nonetheless whether it’s bund — there’s a lot of people that think the medicine of quantitative easing is addictive and a bit dangerous.

Just now add counterfeit to that long list. it might feel comfortable to us. but not everybody is going to accommodate that type of strategy.

Back to you.