Geithner and Bernanke Demand
New Mega-Bailout of Europe
June 26, 2012 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee.
Capitol Hill sources have confirmed that Treasury Secretary Timothy Geithner and Federal Reserve Board Chairman Ben Bernanke are demanding that Congress prepare emergency legislation for yet another hyperinflationary bailout of the hopelessly bankrupt trans-Atlantic financial system. For the past week, the two men have been meeting secretly with leading Congressional Democrats and Republicans, demanding that they draft new legislation to bail out the banks on an even larger scale than after the 2008 collapse.
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. If the crisis hits, they warn, there must be legislation already prepared, because the speed and magnitude of the crisis may require extraordinary intervention to "save the system."
Lyndon LaRouche today denounced the Bernanke-Geithner efforts as "tantamount to treason." "The current trans-Atlantic system cannot be saved," LaRouche warned. "The only option is the immediate reinstatement of the original FDR Glass Steagall Act. It must happen now!"
LaRouche warned that, 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." 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.
"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."
Rep. Marcy Kaptur (D-Oh.) long ago introduced H.R. 1489 to reinstate Glass-Steagall. Her bill now has 69 co-sponsors from both parties. Last week, LPAC 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. Now, Geithner and Bernanke are pushing for another even bigger taxpayers' bailout of Wall Street and London's gambling debts. According to Capitol Hill sources, even Rep. Barney Frank (D-Mass.) rejected the Bernanke and Geithner demands.
Lyndon LaRouche reiterated that 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."