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Rick Santelli Warns American Youth of the Debt Bomb

Posted by Steve Markowitz on May 13, 2012

Rick Santelli is well known for his rants against government intervention and spending as often seen on CNBC.  Santelli gets it, understanding that debt must ultimately be paid back.

Last week Santelli was at it again on “Santelli Exchange“.  In the video posted below he shares some simple facts.  Currently, when a child is born in the United States, he or she is instantly saddled with $50,000 of debt if equally divided amongst all Americans and an even greater amount of $138,000 if only divided amongst taxpayers.  That will ultimately hurt the child much more than that first slap on the behind.

In addition to the debt we are saddling newborns with, Santelli points out that the child will likely need secondary education to get a good job requiring them to take on even more debt.  In addition, through programs like Obamacare we are asking this younger generation to pay for us Baby Boomers’ healthcare.

Finally, Santelli correctly points out that in order to bribe today’s youth into going along with the Ponzi scheme, the government throws morsels at them.  Currently, such morsels include low-cost student loans that saddles the youth with even more debt.  Yikes!

While Santelli’s video below is a must view for all Americans under 30, should this generation ever figure out what America’s debt means to them, the battle between the generations will take on a new form.

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2 Responses to “Rick Santelli Warns American Youth of the Debt Bomb”

  1. David Hauseman said

    Why don’t the Academic World and the Financial Press tell the people the truth concerning this current financial crisis? You all should be yelling and screaming at the top of your lungs about what has happened and what is going on with our current financial crisis. That is:

    1. This is a Depression and not a Recession and has been for the last 4 years!!!! More people are out of work now then during the Great Depression. The US Labor Department numbers say roughly 19% is the real number. What would the percentage be if we did not have Social Security, Unemployment Compensation, Food Stamps, Aid for Dependent Children, Medicare/Medicaid, and a host of other government policies that we did not have during the Great Depression?

    2. This Depression like all other Recessions that I have known during my entire adult like (from 1965 onward) has be a result of Failed Government policies; Governmental Actions; or in the case of the withdraw of the Post War Baby Boomers from the economic consumer purchasing world, or the failure of the government to deal with the Home Savings and Loan Industry, Government Inaction.!!!! See note concerning John Allison below.

    3. Europe’s demise, although somewhat painful to the US, has little to do with the current US Financial Crisis of the last four (4) years and will have little to do with the US recovery, other than a possible minor positive affect.

    John Allison, the former CEO and Chairman of BB&T, comes the closest to laying it all out as to why the US economy is in the tank. http://www.youtube.com/watch?v=aSxA-vtjRx0 However, even he leaves out the massive loss of consumer purchasing power caused by the retirement of the last and largest wave of the three (3) waves of the Post WW II baby boomers and the government’s failure to recognize this impact on the economy. Harry Dent notes these issues of demographic shift and its affect US economics as does Herb Meyer.

    Until policy makers and the public recognize the real causes of these financial melt downs and see the real agony, massive unemployment and loss of personal wealth not to mention future city and state bankruptcies, the country can never move towards fixing itself and its people. CA is no $16 billion in debt! Within 3 to 4 years 50% of all Illinois’ tax revenues will be needed to pay for just the state promised state retirement obligations. I could go on and on, but you all know the facts far better than I. Why are you and others not yelling and screaming?

    • smarko1 said

      Hi David and thank you for your lengthy response. The issues you raise are well thought out an important. While Harry Dent’s book is a worthwhile read, I feel that his focus on mainly demographics is a bit myopic. The end of the debt super cycle that we now face is also related to inappropriate financial decisions in public and private sectors.

      I must respectfully disagree with your question: “Why are you and others not yelling and screaming?” That indicates to me you are new to this Blog as I have been yelling about the problem for multiple years.

      Missing from your well thought out comments are proposed solutions. How do we resolve the issue of excess debt? Until the debt is eliminated, the economy cannot grow.

      Steve

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