LaRouche Denounces Latest Bailout Plan as Just One More Keynesian Fascist Swindle That Could Bring Down Obama's Presidency
March 23, 2009 (EIRNS)This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).
Lyndon LaRouche today forcefully denounced the latest bailout swindle, announced this morning by Treasury Secretary Tim Geithner, as nothing more than a "continuation of the original bailout scheme put forward by then-Treasury Secretary Henry Paulson in November 2008." LaRouche warned that, if this so-called Public Private Partnership Investment Program (PPPIP) scheme is allowed to go forward, it will not only trigger Weimar-scale hyperinflation. "It could, ultimately, bring down the Obama Presidency."
Under the proposed Geithner PPPIP, announced today, private sector investors, led by hedge funds, would set the price of the toxic assets to be removed from the books of the banksat vastly inflated prices. The hedge funds and other so-called private investors, themselves, would put up only a tiny fraction of the capital. The vast majority would come from taxpayers' money, pumped through the Treasury Department and the Federal Reserve. "This is no different than the already discredited scheme of Paulson and Geithner from last Autumn," LaRouche explained. "It is just a continuation of the TARP swindle, but with the hedge funds now brought in on the actionall at taxpayers' expense."
LaRouche further noted that, to the extent that any private funds are channeled into this black hole, it further dries up private funds for productive investment. "What this means," LaRouche concluded, "is that the government is driven to come up with one Keynesian program after anotherand that spells massive hyperinflation. That is why I warn President Obama, that if he goes along with this latest version of the same swindle that goes back to Harry Truman and his abandonment of FDR in favor of that self-professed Fascist, Lord Keynes, his Presidency is in jeopardy."