LaRouche: For the Sake of President Obama, Geithner Should Apologize or Resign
February 16, 2009 • 10:18PM

Lyndon LaRouche today called on Treasury Secretary Timothy Geithner to either apologize to President Obama for the horrible mistakes he has made, or resign. LaRouche was referring to Geithner's continuing efforts to devise a scheme to save the hopelessly bankrupt U.S. banking system. Sources close to the Obama economic team have reported that Geithner is "soft on the banks," and that his proposal last week for a public-private partnership to buy up the toxic waste on the books of all of the big U.S. banks is subterfuge, to hide the fact that he would otherwise have to go back to Congress to ask for $2-3 trillion in additional bailout money. "He has gone too far out on a limb," LaRouche observed.

"The obvious alternative, the alternative that I have spelled out, repeatedly, since my July 25, 2007 webcast, is to put the entire Federal Reserve System through top-down bankruptcy reorganization, as our Federal Constitution provides. So far, Mr. Geithner has shown no willingness to take that vital action.

"Therefore," LaRouche concluded, "Mr. Geithner can either say he was mistaken, apologize to the President, and immediately change policy. Otherwise, he should resign. If he does choose to resign, it would be for the sake of the President. President Obama needs to be strengthened. He must be free to act, properly, to deal with this worst financial crisis in the history of our nation. The President must have the clear support of the relevant Cabinet members, for the kind of drastic policy change that this crisis demands. If Mr. Geithner cannot provide that clear support for the declaration of a national and global economic emergency, and the implementation of a bankruptcy reorganization, then I am afraid his continuing presence will only drag the President down."