Shades of the 2008 Hank Paulson, three-page ransom note to the Treasury for a $700 billion bailout for banks or the world economy would collapse. This time the LaRouche Political Action Committee reports that “Capitol Hill sources confirmed that Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke are demanding that Congress prepare emergency legislation for yet another hyperinflationary bailout of the hopelessly bankrupt trans-Atlantic financial system.”
This is not exactly the news America, already in deep recession and debt, expects to hear. Nevertheless, “For the past week, the two men [Geithner and Bernanke] have been meeting secretly with leading Congressional Democrats and Republicans,” LaRouche reports, “demanding that they draft new legislation to bailout the banks on an even larger scale than after the 2008 collapse.” Like Gordon Gekko, they want more, unsatisfied with the public dole to date.
LaRouchePAC reports, “According to several congressional sources, Geithner and Bernanke have pledged that they will do everything in their power to flood European banks with bailout funds through the Federal Reserve, but they candidly admit that it may be impossible, and that congressional action may be required.” Good luck with asking a Republican-weighted House, obsessed with austerity, for more Fed bailout money for Europe. Yet, LaRouchePAC warns, “If the crisis hits . . . there must be legislation already prepared, because the speed and magnitude of the crisis may require extraordinary intervention to ‘save the system.’”
Lyndon LaRouche responded today, June 28, denouncing the Bernanke-Geithner efforts as “tantamount to treason.” He warned, “The current Trans-Atlantic system cannot be saved. The only option is the immediate reinstatement of the original Franklin Roosevelt Glass-Steagall Act [Read LaRouchePAC link explanation of this great act]. “It must happen now!” LaRouche warned, “as of Thursday or Friday of this week, the entire European financial system will explode.
“Either Germany will hold firm and refuse to surrender the last vestiges of national sovereignty, or Europe will go into a hyperinflationary breakdown. It all hangs on Germany.” The fact is, “German Chancellor Angela Merkel is under pressure from a swarm of British and Wall Street agents—from Geithner and Bernanke to George Soros—to agree to a German bailout of the entire euro system,” LaRouchePAC reports. It adds, “The reality is that the gambling debts of the European and Wall Street banks can never be paid. The only option is an orderly cancellation of all those trillions of dollars of gambling debts by reinstating Glass-Steagall.”
Additionally, we’re told that, “Rep. Marcy Kaptur (D-OH) has introduced H.R. 1489 to reinstate Glass-Steagall and the bill now has 69 co-sponsors from both parties. Last week, LaRouchePAC exposed the fact that former Federal Reserve Chairman Paul Volcker has been mobilized, on behalf of Geithner and Bernanke, to sabotage the passage of Glass-Steagall.” Actually, Volker was originally appointed to serve as a Senior Advisor on finance by President Obama, along with Timothy Geithner (former New York Fed Bank Chief) as Treasury Secretary, and Larry Summers, former Clinton adviser and President of Harvard (2001–06), long gone from the administration.
LaRouchePAC adds, “Now, Geithner and Bernanke are pushing for another even bigger taxpayer bailout of Wall Street and London’s gambling debts. According to Capitol Hill sources, even Rep. Barney Frank (D-MA) rejected the Bernanke and Geithner demands!”
Lyndon LaRouche reiterated, “The only option is Glass-Steagall. Anyone who is not fighting for Glass-Steagall now is going to be judged a traitor to humanity. The only way to save the viable commercial banks is to end the bailouts and go back to Glass-Steagall. If Glass-Steagall is not passed into law now, we face the danger of total chaos, when the system comes crashing down. It could happen as early as the end of this week, as the European crisis reaches a break point.”
Whether this is date is prophetic or not, the Glass-Steagall Act should be reinstated ASAP. In effect, it simply states that an investment bank may not also be a savings bank and offer its commercial services, because those savers funds are prey to invasion and commingling by the investment half of a bank. This has all too often been the case from before 2008 and after, even after the bailouts and easements, garnished with lavish bonus-taking.
Most recently, JPMorganChase CEO Jamie Dimon reported a $2 billion loss (which could grow to $50 billion) in derivatives trading, saying that he knew nothing about it to Congress. Unfortunately, he was not even sworn in under oath by the Senate. Thus, the lies compounded with corrupt acts could bankrupt investors, savers and our economy.
Jerry Mazza is a freelance writer, life-long resident of New York City. An EBook version of his book of poems “State Of Shock,” on 9/11 and its after effects is now available at Amazon.com and Barnesandnoble.com. He has also written hundreds of articles on politics and government as Associate Editor of Intrepid Report (formerly Online Journal). Reach him at firstname.lastname@example.org.