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This article appears in the February 16, 2007 issue of Executive Intelligence Review.

The Case for Nancy Pelosi's
Immediate Forced Resignation

by Jeffrey Steinberg and Nancy Spannaus

[PDF version of this article]

Jan. 27—Lyndon LaRouche today called for Nancy Pelosi to immediately resign her post as Speaker of the House, because of her role in the bank bailout swindle, "which was nothing less than highway robbery of the American people on behalf of special interests.

"At a moment when our newly inaugurated President Barack Obama is enjoying 74% support among the American people," LaRouche declared, "our Congress, under the mis-leadership of Speaker Nancy Pelosi, has the support of less than 20% of the people. This abysmal level of support is well-deserved. The moral authority of Congress is in question, rightfully so, because Nancy Pelosi sold out to the likes of George Soros, the biggest dope pusher in the world, and Felix Rohatyn, to ram through the bailout, which has been a total failure, as I knew it would be, from the very beginning."

LaRouche cited his own July 25, 2007 international webcast, where he spelled out the specifics of a bankruptcy reorganization and freeze on foreclosures, which came to be known as his Homeowners and Bank Protection Act (HBPA).

I provided the solution, to get the United States safely out of the very crisis that we are now in. Those allied with Rohatyn and Soros—led by Nancy Pelosi—sabotaged that effort, just as Pelosi earlier sabotaged my proposals for saving what was left of the machine-tool and productive capacity of our auto sector.

In the case of auto, Pelosi committed a flagrant conflict of interest, because she was working directly with Felix Rohatyn who, at the time, was working to take down the auto sector, and turn it over to a bunch of hedge fund predators. That conflict of interest, alone, warrants Nancy Pelosi's immediate resignation as Speaker of the House.

Bailout, versus the HBPA

However, LaRouche continued, "the greatest crime that Pelosi committed was her role in sabotaging the HBPA and ramming through the bailout, which was highway robbery against the American people. This is one crime that you cannot blame on former President George W. Bush, or on his Treasury Secretary Hank Paulson, alone. Pelosi was the engineer of the bailout bill's passage. It would never have passed the House were it not for Pelosi.

We had the solution on the table, as of July 2007. We had the backing of state legislatures and city councils all over the United States. We could have avoided the disaster we are now facing, if the HBPA had been passed in September 2007. But, Pelosi, and others in Congress, like Barney Frank, sabotaged it. Pelosi and company were in bed with a class of special interests, personified by Soros and Rohatyn, and instead of protecting the American people and protecting the legitimate chartered commercial banks, through a bankruptcy reorganization, Pelosi presided over the robbery of trillions of dollars in taxpayers' money.

Now, Congress must right all the wrongs that they have done since July 2007. And the first step must be for Pelosi to be forced to step down as Speaker. Congress will never restore its credibility with the American people until she is gone. She must be removed from a position of control, because she betrayed the American people. We certainly need a new Pecora Commission, to investigate this greatest bank robbery in American history, but do not kid yourself. No competent Pecora Commission probe can take place, so long as Pelosi is in the leadership of the House.

LaRouche called upon all of the state and local elected officials who mobilized, since July 2007, on behalf of the HBPA, to take on the Congress. "The Congress bears the responsibility for sabotaging all of your efforts to win passage of the HBPA, the measure that would have averted the total financial collapse that we are now facing. Almost all of the problems that local and state officials are facing today can be traced to that Congressional betrayal. The Congress must be confronted on this betrayal, and I call on all state and local officials, who have seen their constituents suffer, as the result of the Congressional corruption and cowardice, to take on this problem. And the only appropriate place to start is with the removal of Nancy Pelosi."

The Bill of Indictment

Pelosi's list of crimes goes back to the Spring of 2005, when she was still House Democratic Minority Leader. It was then that LaRouche, fresh from leading the Democratic Party's fight to stop George Bush's threat to privatize Social Security, called for emergency Federal action to prevent the destruction of the auto industry.

As was soon revealed, LaRouche's proposal immediately ran into a buzzsaw of opposition, led personally by none other than the "Democratic" (actually fascist) financier Rohatyn. Rohatyn, EIR later discovered, had signed on, by no later than May 1, 2005, as an advisor to GM's machine-tool spinoff, Delphi, in order to dismember it through bankruptcy. No wonder he didn't like LaRouche's proposals to save the machine-tool capacity represented by the auto industry.

In fact, LaRouche organizers began to get reports that Rohatyn would show up at Congressional offices shortly after they had been there. And by December, the organizers were getting reports that Pelosi was being pressured by Rohatyn to adopt his phony scheme for infrastructure development, rather than LaRouche's proposal. Rohatyn's scheme is Mussolini-style PPPs (public-private partnerships), under which predator hedge funds and other speculators would be given control over the nation's dwindling infrastructure, particularly highways and bridges, to loot the population through exorbitant tolls.

Until the election of 2006, Pelosi and many other Democrats used the excuse that they didn't have a majority in Congress, to argue that they couldn't move on LaRouche's plan to save the machine-tool sector. But, having been elected Speaker of the House, Pelosi immediately showed her true colors. Despite the voice of the electorate against the Iraq War, she acted consistently to prevent moves for the impeachment of either Dick Cheney or George W. Bush for their violations of the Constitution. By June 25 of that year, LaRouche was training his political fire on her, for protecting Cheney and blocking necessary moves on the economy. On Oct. 25, LaRouche issued a call for her to leave her post of mis-leadership.

What was preventing Pelosi from doing her duty? For one thing, in February 2007, she had hired Joseph Onek as her chief counsel, an individual who also served as the chief policy adviser for George Soros's Open Society Institute. Nor had her collaboration with Rohatyn waned. In early December 2007, she conducted a Washington closed-door session with "Fascist Felix," and with a number of economists, despite LaRouche's workable solution already being on the table.

Given that she was being advised by the likes of Soros and Rohatyn, both infamous for their promotion of swindles and fascist austerity, it is no surprise that Pelosi would proceed to support the bankers' bailout scheme in the Fall of 2008. Pelosi cannot be expected to change—but if constituency leaders get moving the way they should, she can be induced to resign.

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