  We apply Laughlin's gauge argument to analyze the $\nu=0$ quantum Hall effect
observed in graphene when the Fermi energy lies near the Dirac point, and
conclude that this necessarily leads to divergent bulk longitudinal resistivity
in the zero temperature thermodynamic limit. We further predict that in a
Corbino geometry measurement, where edge transport and other mesoscopic effects
are unimportant, one should find the longitudinal conductivity vanishing in all
graphene samples which have an underlying $\nu=0$ quantized Hall effect. We
argue that this $\nu=0$ graphene quantum Hall state is qualitatively similar to
the high field insulating phase (also known as the Hall insulator) in the
lowest Landau level of ordinary semiconductor two-dimensional electron systems.
We establish the necessity of having a high magnetic field and high mobility
samples for the observation of the divergent resistivity as arising from the
existence of disorder-induced density inhomogeneity at the graphene Dirac
point.
