Yesterday the BBC posted a story about the role of Russia and China in the financial collapse in the United States in 2008. The article notes that the Russians and the Chinese considered creating a financial crisis in the United States, but did not act on the idea.
The article reports:
Now this is where we enter the territory of a geopolitical thriller. Mr Paulson:
“Here I’m not going to name the senior person, but I was meeting with someone… This person told me that the Chinese had received a message from the Russians which was, ‘Hey let’s join together and sell Fannie and Freddie securities on the market.’ The Chinese weren’t going to do that but again, it just, it just drove home to me how vulnerable I felt until we had put Fannie and Freddie into conservatorship [the rescue plan for them, that was eventually put in place].”
For me this is pretty jaw-dropping stuff – the Chinese told Hank Paulson that the Russians were suggesting a joint pact with China to drive down the price of the debt of Fannie and Freddie, and maximize the turmoil on Wall Street – presumably with a view to maximizing the cost of the rescue for Washington and further damaging its financial health.
Paulson says this guerrilla skirmish in markets by the Russians and Chinese didn’t happen.
Now wait a minute. Even if the Russians and Chinese decided to manipulate American markets, the housing bubble was a result of the policies of the American Congress–no one else is to blame.
I have posted the YouTube video “Burning Down the House” before, but in case you missed it, here it is again. This video explains the cause of the 2008 financial meltdown. The information included in the video is a matter of public record, but has not been widely reported.
Please watch the video and draw your own conclusions.