CNBC‘s Rick Santelli takes a look at the economic consequences of rising debt on the taxpayer.
Transcript: the dow’s in a tight range. down about 17. let’s get to rick santelli exchange, over at the cme. hey, rick. hi, carl. we’re going to go fast, so buckle up. yesterday, of course, we saw ben bernanke kickin’ the can of normalization down the road.the day before, the cbo released the long-term budget outlook. i really like this. 121 payments. yeah, i’m wonky, i read it. but what was interesting is chapter 6, budgetary effects of alternative budget policies. why is that important? it’s based on debt-to-gdp. ask your mom, wife, girlfriend, what’s debt-to-gdp?it’s kind of — you know, it’s in the weeds. so ffy, and my friends at san economics, used chapter 6’s own numbers, social security administration data, the debt clock, and they changed it to something we all understand. instead of debt-to-gdp, projected government debt per taxpayer. in constant 2013 dollars. go to that debt clock, and you’ll see that per citizen right now, it’s about $50,000 ahead. and per taxpayer currently about 150,000 a head. as you can see on this chart. so the baseline, which is the only chart that’s in that cbo report basically, is this blue one.now, the next two are created from their own data. the data effects to the economy according to the research, basically what we’re talking about is unemployment isn’t going to always be full. we won’t only have growth and no recessions. so the alternatives get figured in. so what you end up looking at, as time goes on, you’re actually going to get up to about 1.2 million per taxpayer 2056. 600,000 in 2044. and we all heard ben yesterday, of course, that by, you know, spending more of these, we’re going to get a big economy and it’s going to grow, more promises, more promises. the problem is that we have a wimpy economy, and in the words of the famous wimpy and popeye,okay, here’s what we end up paying. and instead of getting this as an economy, this is the bill we’re getting. this is the bill. this is the bill, by kickin’ it down the road. but what do we actually end up with? we end up with this. we get this, we get billed for this. so no matter how ben wants to make this thing look, it’s still a little cheeseburger with a pretty darn big price tag. back to you. all right, rick, but real quick, you do admit, sir, if you’re looking at debt-to-gdp, you have to keep the gdp portion growing, not shrinking, right? oh, i completely agree with that.what i don’t like is how we play fast-and-loose with statistics. at the depth — at the depth of the recession, we say we’re making all of this improvement. when in actuality, the debt our kids are going to pay, it’s pretty constant and it’s rising — it’s rising faster than any bread dough isa ever yeast-ified. all right, rick, thank you