LaRouche Demands: NO MORE BAILOUTS!
Geithner’s Plan to Bail Out London’s European Banking System Will Destroy the United States.
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Lyndon LaRouche today demanded that the United States Congress act immediately, this week, to stop U.S. Treasury Secretary Timothy Geithner from carrying out his proposed bailout of the entire bankrupt European banking system, by leveraging tens or hundreds of billions of U.S. dollars provided by the Federal Reserve, into trillions in bailout funds in Europe.
“This must be stopped,” LaRouche stated. “The destruction of the United States is being proposed by Obama’s Secretary Geithner. Honest depositors come first. No more bailouts; no more protection for speculative funds.”
With Europe’s entire banking system spiralling out of control, the European Central Bank announced today that it will be offering euro-area banks emergency dollar loans, with funds provided by the U.S. Federal Reserve through swap facilities. These unlimited swap facilities have been in place continuously since the 2008 crisis, and are now to be activated on a major scale.
At the same time, Geithner announced that he will participate in the meeting of European finance ministers in Poland this Friday and Saturday, Sept. 16-17, where he will urge them to use “overwhelming force” to address the banking meltdown. EU officials additionally told Reuters that Geithner will press the Europeans to leverage their bailout fund, by as much as a 10/1 ratio, along the lines of the U.S. TALF program—the Term Asset-Backed Securities Loan Facility, which was a major component of the 2008-2009 $17 trillion bailout of the bankrupt banks by U.S. taxpayers.
Geithner is reported to be acting under British instigation in this suicidal, hyperinflationary scheme. Indicative of this is the fact that the policy-setting “Lex Column” in today’s Financial Times of London promotes the identical policy that Geithner is now preparing to execute. “The best tool to address solvency concerns is the European Financial Stability Facility,” the “Lex Column” states. “The model is the US Troubled Asset Relief Program [TARP] of 2008, which succeeded by shifting its focus from liquidity to solvency. It is time to launch euro-TARP for eurozone banks.”
A high level former U.S. government economic official yesterday confirmed the plans for a Fed mega-bailout of Eurozone banks. The European debt crisis is worsening by the hour, and is far more dangerous than 2008, the former official said. The Fed is going to have to open up new facilites and get in the middle of bailing it out; U.S. banks cannot avoid contagion from this.
“To hell with the swap lines,” LaRouche stated. “Stop the British Empire’s bailout gambit. We have to bankrupt them before they kill you. This plan is going to kill Americans, and it has to be stopped now. If we need to impeach the President of the United States to stop this, then do it now.”
“This is why I insist that the United States must return immediately to the Glass-Steagall standard of Roosevelt’s original 1933 Act, which presents the intent of the law in a kind of ‘Preamble’ in its very first words:
“An Act. To provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes.”
“That stated intent is still the Constitutional law of the land,” LaRouche stated. “So let us implement it—while we still can.”
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