Posted on 01/31/2010 7:41:28 AM PST by FromLori
Russia urged China to dump its Fannie Mae and Freddie Mac bonds in 2008 in a bid to force a bailout of the largest U.S. mortgage-finance companies, according to former-Treasury Secretary Henry Paulson, in his new book, On the Brink.
Paulson learned of the disruptive scheme while attending the Beijing Summer Olympics. In his memoir, Paulson writes, according to Bloomberg which was able to obtain a copy of the book before its official publication date of February 1, that the Russians made a top-level approach to the Chinese that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies.
This is indicative of how dangerous the Chinese holdings of U.S. debt are. It is a huge financial weapon that the Chinese can use anytime they choose for any purpose they choose. But by selling only selective debt, rather then selling various random chunks of their U.S. debt, the Russians have brought to the attention of the Chinese, if they hadn't thought of it already themselves, how to launch a limited financial nuclear attack by getting them to focus on a particular type of debt, such as Fannie Mae or Freddie Mac. Such a surgical strike would do much to protect the overall investment the Chinese have in U.S. debt, but at the same time cause a severe headache for the U.S.
Why should Russia try this? They have Barney Frank to do the job for them.
It was around the time Russia went to war maybe they thought fwank wasn’t doing it fast enough.
Maybe they're afraid Frank and Dodd will get themselves removed before they complete their task of destroying the American economy.
See also
Of course, the Russians were very prophetic, with the formal GSE conservatorship announcement following a few short days later on September 6, 2008. They also knew how to put their money where their mouth was:
Russia sold all of its Fannie and Freddie debt in 2008, after holding $65.6 billion of the notes at the start of that year, according to central bank data. Fannie and Freddie were seized by regulators on Sept. 6, 2008, amid the worst U.S. housing slump since the Great Depression.
http://www.zerohedge.com/article/russia-urged-china-dump-its-fannie-freddie-holdings-gse-bailout
so why isn’t this an act of war? why didn’t we retaliate?
Actually it was probably smart on their part lol given fannie/freddie
Because we forced them into bankruptcy. I’d imagine Putin wuld enjoy watching us take that medicine.
I don’t know but they did sell theirs I guess why was it ok for our banks to poison the world with bad fannie and freddie loans?
Do the Russians think the Chinese are stupid?
If true, ya think the Russians and ChiComs real target was the US elections?
No doubt. And may seem to forget that Putin was KGB. He's not just your normal Russian...he's a solid ideologue.
You know I hadn’t thought of that good question. According to the Bloomberg article I put in Paulson said it so either he is just a filthy liar or maybe that was part of the reason.
8/25/2008
China Construction Bank Cuts Fannie, Freddie Bond, MBS Hldgs
http://investment-blog.net/china-construction-bank-cuts-fannie-freddie-bond-mbs-hldgs/
8/28/2008
China Dumps US Dollar Denominated Debt: Bank of China flees Fannie-Freddie
http://www.globalresearch.ca/index.php?context=va&aid=9999
Wow very interesting another fly in the ointment. Again can’t say as I blame them it’s nothing but toxic garbage the banks sold to the entire world.
FLASH .....!!!!!!!!!!!
More light shed on the way we are economically manipulated!
Russia Urged China to Dump FANNIE, FREDDIE Bonds...
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afbSjYv3v814
http://www.freerepublic.com/focus/f-news/2441326/posts
“This is indicative of how dangerous the Chinese holdings of U.S. debt are. It is a huge financial weapon ...”
[other news]
ATLAS EXCLUSIVE: Obama Organizing in High School
http://www.freerepublic.com/focus/f-bloggers/2441330/posts
“Obama is using our public school system to recruit for his Alinsky-inspired private army.”
1 Billion Dollar Pay Off To Taliban
http://www.infowars.com/1-billion-dollar-pay-off-to-taliban
[More headlines in link blast response to this post.]
[Want on LINK-BLAST PING LIST? Most will advise you, just say “no”. Want off? Just cuss me out. Light volume, but might ping twice in a day if news is hot.]
South blanketed with ice, snow; mid-Atlantic next...
[common knowledge]
[Please tell Gore to shut up. Every time he talks, this happens. I’ve had enough snow!]
Nancy Frozen Face Pelosi finally admitted the odious health reform bill is dead.
http://www.freerepublic.com/focus/f-bloggers/2441325/posts
Google search: Bush Fail=20,000,000; Obama Fail=38,000,000
http://www.freerepublic.com/focus/f-news/2441328/posts
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http://www.freerepublic.com/focus/f-news/2441287/posts
This is what the terrorists did to me — and why they should be tried at Gitmo
http://www.freerepublic.com/focus/f-news/2441241/posts
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http://www.freerepublic.com/focus/news/2440723/posts?q=1&;page=21
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http://www.freerepublic.com/focus/f-news/2440752/posts
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http://www.freerepublic.com/focus/news/2440754/posts?page=3
Graham: Congress Needs A ‘Win’ On Climate Policy
http://www.freerepublic.com/focus/f-news/2440629/posts
Timing, Grahamnesty, timing. Ever hear about Climage-Gate? [Good grief.]
9/11 trials to be moved from NYC
http://www.freerepublic.com/focus/f-news/2440576/posts
Video: Rush Limbaugh broadcasts an open letter to Barack Obama (after SOTU)
http://www.freerepublic.com/focus/f-news/2440801/posts
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http://www.freerepublic.com/focus/f-chat/2440799/posts
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http://www.freerepublic.com/focus/f-news/2440793/posts
[This is a critical time to keep China from feeling superior. If we can ride this bad period out, then Japan will be an important ally in weapons development, and India will also be a critical ally.]
A Tale Of Two Super Bowl Ads
http://www.freerepublic.com/focus/f-news/2441335/posts
“Pam Tebow’s decision in 1987 to give birth to her son Tim ...” [accepted]
[And then there’s the leftist ad ...]
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http://www.freerepublic.com/focus/f-news/2441333/posts
[New war in Israel?]
Donga Ilbo [from US] came to North Korea because “he hates capitalism”
http://www.freerepublic.com/focus/f-news/2441331/posts
[He wants to serve in NK military.]
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As Protests Continue, Chavez Vows To Crack Down...
[Obama’s buddy having trouble with rifraf.]
UN panel based claims about disappearing ice from student’s dissertation
Climate chief knew about glacier flaws...
GODFATHER USED FACEBOOK TO RUN EMPIRE FROM JAIL...
[So let’s drag out terror trials in US court system.]
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OBAMA FINDS [a measley] $20B IN CUTS
BANKERS IN FAVOR OF PAYING GLOBAL TAX...
3 Americans now held in Iran for half of a year...
Regulators shut down banks in 5 states...
NOW FOR SOME GOOD NEWS: 5.7% GDP! [supposedly]
WALL ST YAWNS...
[Note that 2 million census workers will temporarilly prop economy.]
Thousands protest in Tokyo against U.S. military presence...
[Why help their economy with US bases? Move bases to Taiwan.]
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A Growing Share of Americans Income Comes from the Government
Poll: Americans pretty clueless about politics, world
Mysterious Bush-Bush-Obama meeting at the Oval Office
How Gun Registration and Confiscation Works in Canada
McAfee Says Cyber Thugs Are Attacking Power and Water Plants
The Sharp Dressed Man Who Aided Mutallab Onto Flight 253 Was U.S. Government Agent
Brit government invents 33 new crimes every month
Brace Yourself for the Coming Gold Shortage
[IMO, BO will try to seize gold holdings one day. You need gold-in-hand, not on paper.]
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[WHO — World Health Org.]
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Iceland President Accuses England, Holland of Financial Bullying
CNN | Laws to deal with al-Qaeda and Taliban used aginst Iceland, according to Olafur Ragnar Grimsson.
IMF Boss Wants Global Banking Regulations
[Note that anti-regulation has kept Canadian banks stable since 1927.]
I am sure they did and we would do the same to them.
“If true, ya think the Russians and ChiComs real target was the US elections?”
Entirely possible. And why wouldn’t they? Is Russia are friend? Do they still have more nukes pointed at us than we do on them? And Obama will of course enable them in their attempts to dismantle us.
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