Geithner and Bernanke Demand New Mega-Bailout of Europe

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Geithner and Bernanke Demand New Mega-Bailout of Europe

Capitol Hill sources have 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. For the past week, the two men have been meeting secretly with leading Congressional Democrats and Republicans, demanding that they draft new legislation to bailout 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 Franklin Roosevelt 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) 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. 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-MA) 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."

Article on site with methods of involvement.

A bailout beyond all others...

Associates of our organization have confirmed with our Capitol Hill sources in Washington D.C. (see article below), that Barack Obama's Treasury Secretary, Timothy Geithner and Federal Reserve Chairman Ben Bernanke are demanding that Congress prepare emergency legislation for yet another bailout of the hopelessly bankrupt U.S.-Euro financial system, at a scale larger than after the 2008 collapse. Here’s what Lyndon LaRouche had to say today:

“...The problem is this. We have built up, in the trans-Atlantic region in particular, we have built up the greatest swindle, in all known human history. Nothing has been on this scale. The so-called nominal debt, of nations, standing out there, a debt which is now accelerating, not just accelerating but accelerating at a high speed; you can't keep up with it; what we're faced with is a breakdown crisis of the entire trans-Atlantic system. And as it stands now, in the majority of possibilities, is that we will not come out of this alive, economically and politically.”

LaRouchePAC is in the process of an intense mobilization to enact the one measure that can save our country: An immediate return to Glass-Steagall Act.

Our Enemies Could End Civilization this Weekend (20 minute video)

Karolina's picture
Karolina
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Nov. 3, 2011 6:45 pm

Comments

In the end, the PIGS will either

1) be bailed out and given large stimulus infusions to get their economies growing, or

2) they will leave the EU and default on their debts and get their own economies growing again.

Up until now, the Germans, and Northern bankers have been successful at making the poor people in the PIGS nations to pay for the poor lending policies of the Northern bankers, through the German govt, and the EU council. One would think that if any place, the Germans would have a historical context for what it is like to have foreign powers dictate severe austerity measures and impose catastrophic unemployment on a neighboring nation.

Geithner and Bernanke and Merkel are trying to keep the forward progress on unification going. Until Merkel figues out that making the poor pay for bad banking practices is bad policy, the situation will be difficult.

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Phaedrus76
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Sep. 14, 2010 7:21 pm
Quote Phaedrus76:One would think that if any place, the Germans would have a historical context for what it is like to have foreign powers dictate severe austerity measures and impose catastrophic unemployment on a neighboring nation.

The reason that the Germans have been at the center of both world wars and again are at the center now, is that they have always been the strongest industrial nations in Europe, and consequently needed to be controlled by the fascist movements (Empire).

The same was the plight of the US, except that we were on a different continent and so were more difficult to manage and control, until transportation and communication became so much easier. Now—management, control, and destruction of the US are a pleasant spring breeze for the oligarchs and their minions.

I don't think Merkel is 100% on the unification train any more—but they are working on her, at any opportunity they can.

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Karolina
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Nov. 3, 2011 6:45 pm

UPDATE 7/1/12

After the EU Summit: London's "Weimaristas" Now Deploy to Get Mega-Bailouts Rolling in Earnest

Now that German Chancellor Angela Merkel was strong-armed into making significant concessions at the latest EU summit, opening the door to London's hyperinflationary bailout mechanisms, London's "Weimaristas" have lost no time in stating their intention to kick the door down altogether in the days immediately ahead, and get a serious mega-mega-bailout underway, as demanded by the unstoppable meltdown of their trans-Atlantic financial system.

The ECB, starting with next Thursday's interest rate-setting meeting, is the immediate focus for follow-up action. Typical of the marching orders issued in the financial media is a Bloomberg interview with Deutsche Bank's London economist Gilles Moec: "The ball is very much in the ECB's camp. The EU statement creates an environment in which it makes it easier for them to take more unorthodox decisions." Under the subhead "More Needed," Bloomberg then reminds readers that the EFSF and ESM bailout funds are only good for about 500 billion euros, peanuts compared to the 2.5 trillion euros bonded debt of Italy and Spain alone. What is needed, they argue, is for the ESM, which is due to come into force in July, to get a bank license that would allow it to tap the ECB, "That would help ramp up the power of a kitty now dwarfed by the size of the bond markets that leaders want them to rescue." Other bankers quoted by Bloomberg go on to promise "further chaos in markets" to get their way. Such chaos could be conveniently forthcoming as early as next Thursday, when both Spain and France try to auction sovereign bonds.

Associated Press also honed in on the ECB to handle the enormity of the bailout tasks required: "Most analysts cheered the EU plans but worried about the questions left unanswered. And they said the [EFSF and EMU] bailout funds are too small to handle the tasks that could be thrown at them... The solution hovering in the background, say some economists, is the European Central Bank... The ECB's next policy meeting is Thursday in Frankfurt."

See article.

Karolina's picture
Karolina
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Nov. 3, 2011 6:45 pm

"Coalition of the Willing"...

btw Germany just conceded to EU funds going directly to banks so it won't be counted as government debt, and guess what! that means the EU can act more like the fed does here! http://www.csmonitor.com/World/Europe/2012/0629/Germany-forfeits-to-Spain-and-Italy-agreeing-to-loan-directly-to-banks

nimblecivet
Joined:
Jul. 31, 2007 3:01 pm
German Warnings: ESM and Bailouts Bleed Out Europe
July 2, 2012 • 12:26PM

At a Berlin press conference today Wilhelm Hankel and Karl Albrecht Schachtschneider, two of the famous "4 anti-euro professors" elaborated on the legal complaint against the ESM which they have filed along with the Free Voters party at the constitutional court, and attacked the bailout policy in harsh words.

Hankel said the ESM is a monster, unprecedented in the world with a capital base that is 140 times larger than that of the ECB, 80 times larger than that of the Bundesbank, and 50 times larger than that of Europe's biggest bank, Deutsche Bank. With that firepower, it will soak up all the capital needed for the bailouts, and that will leave nothing for public sector loans, for the municipalities, for the creation of youth jobs, for the firms. Europe's real economy will be bleeding out, also in terms of democratic rule, because the ESM is designed to stand above the democratic institutions of Europe (a point elaborated on even more by Schachtschneider, then —ed.).

Hankel also responded to a question posed by BueSo TV correspondent Stefan Tolksdorf on the way Merkel got pulled over the table at the EU Summit, on Obama's interferences, and on the hyperinflationary threat posed by the ESM and other policies. Hankel said that Obama's conduct had nothing to do with the euro as such, but more with the fact that de facto, the euro and the dollar are tied together. The German government should reject any interference from the US side, also reject such comments as that by the IMF's Christine Lagarde, who is said to have declared that if she ever heard mention of the German constitutional court again, she would leave the room right away.

See article.

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Karolina
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