Rick Santelli: Deflation Issue Is A Drip In The Basement

Tue, 12 May 2009

Larry Kudlow of CNBC banters with Steve Liesman about the Fed's competency to combat inflation and to protect the value of the dollar. Liesman reports that the Fed's staff is working "very intensely" on an exit strategy for the expanded monetary supply. Rick Santelli later chimes in with his mini-rant about the threat of severe inflation.

"Why should they start now??", retorts Santelli, in response to Kudlow's question about whether the Fed will ever protect the value of the dollar. Santelli continues, "I mean, I think the answer is that easy; and, let's look at it this way. You know, we're worried about a drip in the basement in terms of deflation and I understand that asset prices [and] incomes are falling, but when Fred Flintstone's feet actually touch the ground with all the printing they're doing... that traction, coming out of the box, when things look a little better, is going to be STUNNING in terms of those CPI and PPI numbers down the road."

Watch Part 2 here:
http://www.youtube.com/watch?v=P65MBLSEV5o

Category:

News & Politics

Tags:

• stagflation
• inflation
• stagnation
• deflation
• depression
• recession
• economy
• financial
• GDP
• CPI
• PPI
• economics
• gold
• silver
• oil
• dollar
• money
• supply
• monetary
• base
• Federal
• Reserve
• Rick
• Santelli
• rant

[BATCH420]

They WOULD go to Jekyll Island.... bastards..

[libertyeconomics]

Liesman gets it so wrong. The regime is so bankrupt, IT CAN'T FUNCTION WITHOUT INFLATION. They actually DON'T WANT US TO THINK THERE WILL BE INFLATION. LIESMAN GETS IT BACKWARDS.

[kckmkq]

@Clarissa2424 I hope you keep buying paper. I'll stick to Gold and Silver. Best

[AntiVenomFangX]

@herbs814

do you know why everybody buys chinese goods?

[AntiVenomFangX]

@Clarissa2424

4 months later...... what would you say?

[JediKnifeTricks]

@Clarissa2424 Gold is declining?

[Clarissa2424]

Larry Kudlow has always been wrong..1 year later he is wrong again. We are still in deflation and gold is declining, as well as commodities, real estate, oil and stocks will plummet very quickly. Get into Treasury bills.

[Clarissa2424]

@libertyeconomics Deflation is here, just like Leisman said.

But, don't be disappointed - Inflation will come AFTER the deflation.

[lordhighexecutioner]

The value of the currency is irrelevant. Who cares? You'd throw half the people into unemployment so you can boast to having a valuable currency? What insanity. Money is just a token. Who cares. Its purpose is to have employment and production. Those are the real goals of a sane administration but clearly the right wingers are not sane.

[Mattessj]

the birthplace of the federal reserve act

[funk03]

Liesman looks like Charlie Brown

[MrDarwind]

Jekyll Island! ha ha. Returning to the scene of the crime. Unreal. Just watch David Walker comptroller general. Who is gonna eventually pay for all of this? The dollar will pay because no one will raise taxes or interest rates.