LaRouche: Obama Administration Cannot Bypass Congress
April 6, 2009 • 9:25AM

Lyndon LaRouche responded today to a story reported in the Washington Post, that the Obama administration is engineering new bailout initiatives in a way that will allow firms to avoid restrictions imposed by Congress, including limits on executive pay.

As LaRouche stressed, you can't bypass the Congress. You can't pull a trick against the U.S. Constitution. That would be treason. It is treason to act in favor of a foreign power, which is making war on us. Moreover, no one, including the Congress, can say, we couldn't do anything about it, because they bypassed us. Treason, whether done by a President or not, is still treason. Remember, we almost had Aaron Burr as the President of the United States and that would have been an act of treason, because he was working with the British to dismember the United States.

According to the Washington Post, the Obama administration believes it can bypass the regulations established by Congress by setting up "special purpose entities" that act as middlemen, channeling the bailout funds to the firms, rather than dispensing the aid directly. The administration has decided that congressional restrictions, which would require recipients to turn over ownership stakes to the government as well as curb executive pay, should not apply in at least 3 of 5 initiatives funded by the bailout.

David Zaring, a former Department of Justice attorney, said "They are basically trying to launder the money to avoid complying with the plain language of the law."

When confronted on CBS' Face the Nation on Sunday by host Bob Schieffer, U.S. Treasury Secretary Timothy Geithner lied that the Treasury was not trying to bypass the Congress: "No, that's not true." But when David Axelrod was asked the same question by Fox News Sunday host Chris Wallace, he admitted that the administration doesn't "want to create disincentives and undermine the program.... we need these financial companies to help...."