Killing the Debt-Crisis 'Godzilla'

VANCOUVER, Canada (Bullions Bull Canada) -- The transformation of the mainstream media from "news" to schlock-entertainment is now complete. Witness this headline from Bloomberg News:

Saving Cyprus Means Nobody Safe as Europe Breaks Taboo

Ooh! "Nobody safe." "Breaking taboos." Sounds like an advertising teaser from some low-budget horror movie. Confirming that we are now dealing with the plot from a low-budget horror movie is the second sentence of the article:

...The island nation's rescue sets precedents for the eurozone that may stick in the memory of depositors and bondholders alike as investors debate who will next fall victim to the debt crisis.

"Who will next fall victim to the debt crisis"? It wasn't banksters and corrupt politicians who stole depositors' money out of Cyprus banks. It was some amorphous, economic "Godzilla" that did the dirty deed. It's not the bankers' fault. It's not the politicians' fault. Blame the "debt crisis."

Where does one start in deconstructing this insane propaganda? The obvious place would seem to be that the "debt crisis" wasn't created by us but by the very same Frankenstein-bankers and Frankenstein-politicians who now claim the right to steal from us to pay for their mistakes.

Obviously, the only people who should be "paying for" the debt crisis are the politicians and banksters themselves. But this merely scratches the surface when it comes to the outrageous half-truths peddled by Bloomberg, primarily through the use of absurd euphemisms.

Stealing money out of peoples' bank accounts is "breaking a taboo?" No -- it is committing a crime. The fact that it is our governments now committing these crimes and that they tell us it's legal does not change this reality in the slightest.

Note the intentionally misleading use of neutral language here as yet a further attempt to absolve the criminals of responsibility for their crime:

The island nation's rescue sets precedents...

Sets precedents? Really? "Precedents" are the judgments of formal trials, pronounced by a judge -- after all of the evidence has been presented and evaluated in an open courtroom. At the very least it is the outcome from some official (and legal) process, like an election. It's not a small group of criminals assembling behind closed doors and arbitrarily choosing to steal assets from a specific group of victims. That's how crime syndicates operate.

Godzilla is now rampaging across the economies of the West out of control, according to the corporate media. How did this happen? Are the bankers and politicians to blame? No, it was the island nation's rescue that (supposedly) set the precedent. The debt crisis forced this extreme measure. Godzilla created itself.

Note the differences, however, between the low-budget horror movies of the 1950's and our real-life Godzilla movie. At least in the theater the army of Japan makes a valiant-but-futile effort to fight the monster. With our economic Godzilla now terrorizing Europe, what do we see "our army" of the bankers and politicians doing? Shrugging their shoulders and speculating about "who will be the next victim."

Maybe I'm being unfair. The bankers and politicians tell us they are "doing something" to battle the debt crisis. Let's take a closer look at their efforts to "fight" the crisis.

The bankers and politicians tell us they are "bailing out" the debtors. Sounds good since by definition the only way you can "bail out" an insolvent debtor is by either giving the debtor money or forgiving some/all of the debts. Except that's not what they are doing.

What they are actually doing is lending more money to already insolvent banks and/or sovereign governments. I have previously characterized this as "putting out the fire with gasoline." This is incorrect.

What the banksters and politicians are doing is adding new debt to the old debt of already insolvent entities. They are supposedly attempting to put out the fire with more fire.

So the bankers and politicians are feeding Godzilla steroids and then getting the media to absolve them of any responsibility when Godzilla gets hungry.

In relative terms, Godzilla was the proverbial "98-pound weakling" when the bankers and politicians began "fighting the debt crisis" (i.e. feeding it steroids). Today, Godzilla is a gigantic behemoth so ravenous and indomitable that even the "safe," "secure," "insured," "guaranteed" money people have in their bank accounts is no longer either safe or secure.

What makes Cyprus different from other bailouts is the loans to insolvent entities are now being augmented with stolen money. But the bankers and politicians aren't to blame as Godzilla goes on its rampage. How do we know? The media tell us it's so.

All of the so-called bailouts have involved lending more money to already insolvent entities. From Day 1, the bankers and politicians have been knowingly putting out the fire with more fire, claiming they were doing something which is logically/theoretically/mathematically impossible. From Day 1, the media have been lying to us and insisting that putting out a fire with more fire was a "bailout."

If there is anything truly "monstrous" here it is the pretense that nothing can be done to prevent Godzilla from continuing its rampage and stomping on the bank accounts (or pensions) of more victims now that the "precedent" has been "set." Nothing could be further from the truth.

What is the ultimate fate of all insolvent entities? They go bankrupt. In our modern economies it is understood that it is always in the best interest of insolvent entities to declare bankruptcy as soon as possible (in order to restructure), as this is how one minimizes the economic damage for all parties concerned.

Why are our politicians (and bankers) pretending that our governments and banks are still solvent? Why are they lying to us and telling us they are "bailing out" debtors when they are burying them in much more debt?

Why are they feeding Godzilla massive amounts of steroids? Because as our entirely corrupt economic system now lurches toward inevitable implosion these insolvent facades created by the bankers and politicians will be used as the excuse to openly steal as much of our wealth as possible before Final Implosion occurs.

Understand that the solution here is as obvious as it is inevitable. Debt Jubilee, a recurring event throughout history, is when all debt is wiped away (in economies/systems that have rendered themselves hopelessly insolvent). This would not simply "fight" Godzilla, it would instantly erase the monster. Our governments are not "forced" to steal from us. They choose to steal from us.

There is only one way to protect yourself from "Godzilla" (i.e. our bankers and politicians). Move as much wealth as possible out of any/all forms of paper and, most important, out of the custody of these criminal financial institutions and into the safety/security of "physical" gold and silver bullion.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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