"The Case Against Government Debt - PERIOD"

Submitted by Tyler Durden on 04/22/2011 13:43 -0400

The most exciting episode of the neverending (and always distracting from far more important matters) political soap opera is without doubt the ongoing debate over the debt ceiling (which may legally be breached as soon as the week of May 1). For what it's worth, this is a complete sideshow as i) the ceiling will be raised, ii) both parties will blame each other for this outcome while shaking hands behind the scenes in expectation of more "gifts" from Wall Street and iii) the world will realize just how broke America is now that its debt ceiling, which we believe will be raised by just over $2 trillion to last the country until after the next presidential election, will for the first time ever be greater than its GDP, an event that has never before occurred. And so the distraction will shift to another even more meaningless debate. In the meantime, few ask themselves the key question: why is there government debt? In that regard, many have made the point against government debt, but few have done so as successfully and as succinctly as Bill Buckler does in his latest issue of the Privateer. In the below segment, Buckler does the definitive and most commonsensical reduction of the "government debt" issue and why what America is doing is nothing short of allowing itself to be hijacked on the road to a dictatorship. 

 

 

 

Holiday, No Holiday, Doesn't Matter: Silver Still Up By A Buck

Submitted by Tyler Durden on 04/22/2011 10:34 -0400

Not content with rising by a dollar during all recent regular work days, silver is now up a buck on a holiday. Doesn't make much sense, but we'll take it. 

 

 

 

 

 

 

Guest Post: Your Pick, Ben, But One Goes Off The Cliff

Submitted by Tyler Durden on 04/22/2011 10:16 -0400

If rising oil pushes the real economy over the cliff, voters will not be re-electing incumbents in 2012. Welcome to reality, Ben. Your "let's pretend the recovery is real" game is nearing an end. If you push the dollar down any more, then oil will go up and tip the real economy into a recession that QE3 will only make worse as you send the dollar into freefall. If the dollar rises, then your beloved "wealth effect" dies a horrible death on the rocks below. Take your pick, but choose wisely. 

 

 

 

 

Greece "Velvet Restructuring" Imminent, Blames Upcoming Second Bankruptcy On Citigroup Trader

Submitted by Tyler Durden on 04/22/2011 09:57 -0400

It appears rumors that Greece is set to restructure its debt are about to come true. According to Greek daily Ta Nea, reported by the Guardian, "the government was mulling "a velvet restructuring" that would include extending outstanding debt and a voluntary agreement with lenders to modify repayment terms." More: "Greece  is considering ways to restructure its debt – such as by extending the life of its loans – two national newspapers claimed on Friday, joining a flurry of recent reports on the prospect that Athens might be forced to default." Not surprising, this comes hot on the heels of continued lies about the stability and viability of the eurozone and the euro, which recently surged to nosebleed levels only to allow it to drop from the highest possible position when the realization that the dominoes are falling finally sets in. But never one to be bound by the confines of reality, where one is accountable and responsible for their actions¹ (1: except all millionaires and billionaires bailed out by the Bernanke Put), Greece is now calling in Interpol to put the blame for its latest and greatest bankruptcy on a Citigroup trader: "A London trader working for US bank Citigroup  is to be questioned by investigators over an email at the centre of an investigation by the Greek authorities into rumours that Athens could be forced to restructure its national debt as early as this weekend." So, it is a trader fault for pointing out the market's reaction to what is so glaringly obvious even a caveman finance minister from Athens will realize it, and not the fact that one needs to apply a new Excel #Ref! patch in order to express Greek debt to GDP. The lunacy. The lunacy.

Live Rounds Fired At Pro-Democracy Protesters In Damascus

Submitted by Tyler Durden on 04/22/2011 08:32 -0400

According to incoming reports, a protest in Damascus has turned violent and possibly deadly after security forces used teargas and live ammo to disperse protesters. Reuters reports: "At least three protesters were injured on Friday when Syrian forces fired live rounds at a large pro-democracy demonstration in the Damascus suburb of Douma, a witness said. "Thousands took to the streets in Douma. I helped carry three people the bullets hit in the leg," the witness said." Sky News adds: "Syrian security forces have used teargas to disperse protesters in the capital Damascus, according to reports. It follows reports the Syrian army was deployed overnight in the city of Homs - ahead of Friday prayers. Syria's protest movement has promised a day of demonstrations on what it is calling 'Great Friday'." Ironically all this happens just after the country's age old emergency laws were lifted earlier this week "to herald a new era in human rights." Perhaps rights to get shot in the head? Either way, with Syria oil production minimal, do not expect any imminent intervention by the globocops in the imminent future, unless violence threatens to spill over into the Golan Heights.

  

Hitler And The COMEX

Submitted by Tyler Durden on 04/22/2011 08:52 -0400

It has been done before (here, here and here) and it certainly will be done again. In the meantime, here is Adolf, reprising in his now traditional role as Jamie Dimon, learning that the Comex is out of silver.

One Angry Rant: "Land Of The Stupid, Home Of The Freaking Screwed"

Submitted by Tyler Durden on 04/22/2011 14:04 -0400

Zero Hedge is not a political blog. We take every opportunity to expose the hypocrisy and corruption on both sides of the aisle. Granted over the past 2 years we have seen quite a bit more of it from one side, but that has been primarily due to that one side being in control, and as always happens to whoever is in charge, screwing things up. For the most part, we try to be at least modestly picky about how we express ourselves now that politics and finance have become more intertwined than ever in history. The same can not be said about the following clip from Drinkingwithbob who appears to have said "basta" to diplomacy, and delivers one of the more memorable rants against what everyone knows to be true but few are willing to say out loud. If nothing else, it is... cathartic.