SANTELLI: 'The answer is easy: Spend less!' (cnbc via Drudge, insiders are clueless)

yes I know no paragraphs but it contains the transcript.

all the trauma nothing more than political theater or is there a real serious threat out there? rick santelli, i was reading an interesting thing about your market, 28 billion in four week bills on wednesday auctioned off at a rate of 0%. sounds like your market isn't worried about the u.s. paying back its debt. of course they were. if they weren't worried it would have yielded minus 14 points. the market isn't worried. i tell you what i so disagree with warren buffett. so disagree. who is holding who hostage? you know, any addict, you can't bend the rules. there's the steps you follow when you're an addict. not anything you can bend. in november there was an election. people in the house were sent there because voters had an appetite for less spending. they wanted d.c. to control their spending. and if whatever comes out of these meetings doesn't satisfy the electorate, guess what? november comes in the calendar once a year. next year the mid-term will make it took like child's play. these a real threat. of course. you know, rick santelli is right. you know, we have a turn over in washington that had a mandate to it. but, we have this spending limit we're coming up against and somehow in here these guys have to work something out and compromise somewhere. this hard date, on august 2nd means we've run out of reserve cash to pay our bills. we'll have to rely just on the cash receipts which come to about $203 billion for the month of august and we got $362 billion in bills. if you don't have any cash to go to somebody is going to come up $162 billion short whether it's social security recipients or bond holders or debt holders. it won't be bond holders. i don't usually agree with goldman. this time i did. by the way since they are the college that gives us the graduates that run the government here was their comment. the treasury's ability to prioritize interest payments over under spending seems increasingly clear. there's plenty of money to pay people who are owed interest payments. i agree. everything else isn't going to get paid. but, who spent the money? who created the obligations? congress. let them figure it out. the answer is easy. spend less. what's complicated is they are trying to massage the numbers to make these ten year projection. you can't jeopardize the credit worthiness of the united states. i don't thinker with. if i was a bond holder and i got my money -- you think we can? i think i would be happier, maybe that's why rates are low is because we're addressing the problem. we need to address the problem but not be irresponsible to jeopardize the nation's credit rate ppg. if we keep spending what we're speending, even in illinois, we spent more on the new budget. got to figure it out. we're fighting over a growth rate of spending. it never goes down. if we keep it up we'll have much bugger problems than we have today. hold their feet to the fire but not with this gun. darn right. innot now when? now is the time. now, now, now. now is the time but they can't use this gun. let me tell you something. nothing will pass the house if they stick together. end of story. that's the way the game works. where does compromise come from? i don't believe in compromise on spending. there's no compromise. stop spending. live within your means. rick -- too late. if you live within your means and warren buffett is right and there's a bullet in the gun this time what do you think? the bullet is in the gun. if we keep spending we'll for sure hit something and it will bleed. if he's right and you go and you have a huge event that makes two years will look like child's play what then? what huge event? here's the question, do you need a hard reset of the clock? that's what you're asking for. you think we need to reset the lock? no. i think what we need to do is live within the revenue intake, live within the revenue intake, end of story and do not ask taxpayers for more money or increase the debt ceiling until you give us a budget. until you give us a budget. we're running you want of time. whose fault is that? what have they been doing for two years. it's a practical problem. we still have to come up with a practical solution. pay our interest payments. the rating agencies won't come after us. there are plenty of people that won't get program money. i understand that. but maybe the programs need less money, need to be streamlined. absolutely. it isn't a question whether you need to tackle social security, it's how long do you think that bullet will take before it comes out of the revolver. how bad does the cry sues have to get before these people do the right thing is the main question at hand. couple of things. stick tough. we all know the right thing. the right thing is to create a better environment, to create jobs, by not living in the red. there's a better way to compromise than facing the bullet in warren buffett's gun. we're not compromising on spending. rick santelli we love you. michael farr thank you for joining us. herb i'll remind you again there's a seat belt over here. automakers eyebrow raising

Scroll upScroll down

. .

. . . .