New British Bailout for Euro: How About Another $650 Billion?

May 10, 2010 (LPAC)—The British government and its puppet, Barack Obama, have pushed EU finance ministers and heads of state into new, huge panic bailouts "for the euro" — in which Her Majesty's UK government itself does not intend to take part. The new bailouts, being announced Sunday night in a rush before Asian markets opened, may total $650 billion (500 billion euros), according to continuing leaks from an all-weekend meeting of 27 finance ministers "to stop a sovereign-debt crisis from shattering confidence in the euro."

It won't succeed. As Lyndon LaRouche said on Saturday, "The attempt to pull a swindle ... using a bailout of Greece, to try to wreck the nations of the continent of Europe, the euro group, has backfired, and has struck at the heart of the system, the euro system, which is controlled by the British monarchy, the British Empire group." If the United States now adopts LaRouche's Glass-Steagall policy through the Senate, defeating Obama's moves to stop it, the British pound, and the whole British policy swindle, will sink to the ground.
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With bank and bond credit conditions in the past week having plunged back to their "freeze-up" status during the crash phase of early 2009, three and perhaps more new bailout schemes were being whipped up by the finance ministers for instant attempts at implementation. Gordon Brown had called German Chancellor Angela Merkel, whose government is supposed to cough up the most bailout funds, on Friday and again Saturday to break her resistance to the schemes. Obama called Merkel on Friday and on Sunday and "stressed the urgency of all European Union members taking resolute steps to build confidence in the markets," confessed the White House.

But British Chancellor of the Exchequer Alistair Darling had the following nice formulation for Sky News: "When it comes to supporting the euro, that is for the Eurogroup countries [Britain is not one]. We need to show again today that by acting together we can stabilize the situation."

One scheme will add 60 billion euros to an existing 50 billion euro "currency stabilization fund" — up to now a backup facility for currencies of non-EU member countries — and turn it to "defending the euro." A second crazy element would let the European Commission, a wholly appointed supergovernmental bureaucracy, use the European Union's budget as collateral to borrow bailout funds, immediately for the sovereign debts of Spain and Portugal this week. A third scheme is to create a "European IMF," requiring all EU governments to cover any debts if one country defaulted on loans backed by its EU "partners." The Wall Street Journal reports the 27 fools pledged to accelerate budget cuts across the bloc, and devise severe sanctions for violations of the "Maastricht 3% rule." A fourth scheme is for the U.S. Federal Reserve to flood the European central banks with currency swaps liquidity. And "the European Central Bank" will probably play a role.

As "W" Bush's Treasury Secretary Hank Paulson once put it about the $700 billion TARP bailout, "We wanted to arbitrarily pick a very large figure."