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 Nov. 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."
LaRouche elaborated. "This is the same kind of Keynesian—i.e. fascist—swindle that was put in place just hours after the death of President Franklin Roosevelt, by his replacement, Harry Truman. Truman's instant abandonment of FDR's Bretton Woods System, a credit system of fixed exchange rates, which was adamantly opposed by Lord Keynes, the British delegation and their Wall Street accomplices, was tantamount to treason by Truman. It was a betrayal of everything that FDR stood for, beginning with Roosevelt's commitment to the elimination of the British Empire at the close of the war. Truman's betrayal was a form of warfare against the United States. True, there were no guns pointed at American soldiers, but it was as much an act of treason as any act of military aggression during the war."
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 banks—at 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 action—all 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 another—and 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."