Russia tried to talk China into waging financial war on the US in 2008, as the country was mired in a mortgage crisis.
According to a forthcoming book by former Treasury Secretary Hank Paulson, Russian leaders wanted the Chinese government to dump billions of dollars worth of bonds tied to ailing mortgage giants Fannie Mae and Freddie Mac.
That would have thrown the entities, which grease the wheels of America’s mortgage market, into a crisis and forced the US to spend emergency money on a bailout.
“The report was deeply troubling — heavy selling could create a sudden loss of confidence in the GSEs (government-sponsored enterprises) and shake the capital markets,” Paulson recalled in his upcoming book “On the Brink: Inside the Race to Stop the Collapse of the Global Financial System.”
If this is true then why does America continue to antagonize China? Looks like a big storm brewing in the future on trade wars with China.
Maybe China will take Russia up on her offer…
Windows to Russia!
comments always welcome.