Bill Buckler: “Sovereign Debt Can Never Be Repaid”

Monday, January 10, 2011
By Paul Martin

by Tyler Durden
ZeroHedge.com
01/10/2011

The following extract from Bill Buckler’s latest Privateer Report hits at the heart of the current systemic collapse, and is thus presented without commentary.

Sovereign Debt Can NEVER Be Repaid

Wherever you live in the world, you are pushing a huge rock uphill. You and I live in a world whose money, markets and financial system is TOTALLY dependent on the debt issued by government. In any form of rational economic definition, a debt is a deferred and therefore an UNFINISHED transaction. It cannot be completed until the principal plus interest incurred in its issuance have been repaid in full – and in money which retains the purchasing power of that which was borrowed to incur the debt.

No government debt has ever been or can ever be repaid in full. This is especially the case when a government imposes a monopoly on what can be used as money by passing and enforcing “legal tender” laws. The US did this with the introduction of the Fed in 1913. Eventual default becomes an absolute certainty when government makes its own debt paper the ONLY “reserve” behind the “money” it alone can create. The US did this under President Nixon in 1971. The whole world went along with it because the US Dollar was the reserve currency and no government or people anywhere dared jettison it.

The result is the global financial quagmire we see everywhere we look.

The Rest…HERE

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