Former Treasury Secretary confirms TheBlaze’s Sept. 2013 report that Russia played a role in the 2008 financial crisis

Back in September of 2013, For The Record looked at the possibility that countries hostile to the U.S., like China and Russia, may have artificially driven up the price of oil and intentionally crashed the stocks of some financial institutions, escalating chaos prior to the 2008 economic crisis. Yesterday, a BBC report seemingly confirmed this investigation.

In a September article for, TheBlaze’s senior Washington correspondent Sara Carter explained the threat of economic terrorism to the United States.

Carter writes:

China, Russia and even Al Qaeda, among others, all have one thing in common: They believe that unconventional warfare against America’s economy is the best way to destroy our nation without actually ever having to fire a shot.
And our enemies almost made it happen in 2008.


[F]ormer senior U.S. officials disclose what the Pentagon and Washington establishment had been hoping to bury — that the near economic collapse of the United States in 2008 was not due to widespread failures in government regulations, but a planned attack to destroy our nation perpetrated by both China and Russia.

Read Carter’s entire report HERE.

Watch the initial coverage from September’s For The Record: Unrestricted Warfare below:

Six months after For The Record’s report, it appears others in the media are starting to pick up the story. In a BBC article published yesterday entitled “Russia ‘planned Wall Street bear raid’”, business editor Robert Peston describes the cynical relationship between the United States and Russia as “deep, rooted in history.” Furthermore, the relationship shows that the “triumph of capitalism over communism wasn’t the end of the power game between these two nations.”

The BBC article relies on excerpts from interviews with former U.S. Treasury Secretary Hank Paulson that were conducted for the BBC Two documentary “How China Fooled the World.” These comments didn’t make the film.

In relation to the 2008 financial crisis, particularly Fannie Mae and Freddie Mac, Paulson explained that the Chinese were the “biggest external investor holding Fannie and Freddie Securities.” As a result, China was “very, very concerned” when Fannie and Freddie began to melt down. At that moment, the Russians allegedly tried to draw up a pact with the Chinese.

“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,’” Paulson explained. “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].”

While Paulson clarified that “this guerrilla skirmish in markets by the Russians and Chinese didn’t happen,” Peston believes Paulson’s comments are “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,” Peston writes.

Read the entire BBC report HERE.

As we watch the Obama Administration flounder on the world stage – especially in relation to crisis in Ukraine – Glenn warned of the consequences on radio this morning.

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“Hank Paulson came out and… verified… Russia tried to collapse the United States in 2008… We had [the story], and it was one of those things we were mocked for. For the Record had it in absolute iron-clad spades,” Glenn said. “So we know that Putin has designs on collapsing the United States of America. That’s not Glenn Beck. That’s Hank Paulson, our [former] treasury secretary.”

As Glenn explained, this report should come as no surprise to anyone familiar with history. The tactics used by the United States collapse the Soviet Union are the same tactics now being by Russia to collapse the U.S.

“We know [Putin] wants to actively engage in collapsing the United States of America, so what do you do? Well, you spend us into oblivion. Stretch us really thin. This is not a new theory. We know this works because we did it to them. We are so stupid. We don’t even recognize our own pattern. This is how we collapsed [the Soviet Union],” Glenn explained. “We worked with anyone who would take them apart anywhere in the world. That’s how we did it. And then Ronald Reagan went and just schooled their premiers and just made them look like bumbling idiots on the world stage. And that thing closed down.”

Unfortunately, our current President is more concerned about fighting back against the personal attacks he is facing than looking at how dire the situation actually is.

“So what are they doing to us? What’s happening to us right now,” Glenn asked exasperatedly. “And our President is making this into a personal attack. Our President, instead of being a statesman, decided to make it about seven people who don’t even have any assets. John Kerry comes on the world stage, ‘You had better do this. Otherwise, there will be real consequences!’ Real consequences against seven people who don’t even have assets outside of their general country?”

“That’s right, Glenn,” Pat responded with his best John Kerry impersonation. “Who’s laughing now?”

“The world,” Glenn concluded.

Learn more about the economic warfare threats the United States faces by watching For The Record: Unrestricted Warfare. TheBlaze TV subscribers can watch the episode on-demand HERE. Not a subscriber? Start your 14-day free trial HERE.

  • Anonymous

    “So we know that Putin has designs on collapsing the United States of America”. Sounds kind of like someone a little closer to home. Someone that lives at 1600 Pennsylvania AVE.

    • Katherine John


      ♛♛♛ �♛♛♛ ♛♛♛ ♛�♛♛ ♛♛♛John Kerry comes on the world stage, ‘You had better do this. Otherwise, there will be real consequences!

      • Anonymous

        Spam ^

        • Anonymous

          Why are people so cruel that they have to cause spam

      • Virginia

        Lap dancer?

    • Anonymous

      Well, why don’t WE devise a plan to re-collapse Russia and then China. Believing what Paulson says is like believing that obama is good for America.

      • Anonymous

        Even if Russia did this we are still at fault for Putin [pun intended] in such a economically vulnerable position. The first thing we could do is quit aiding and abetting our enemies by granting them powers. Like the Internet, the Panama Canal and advanced technology. Also we cave on industrial development like offshore drilling, pipeline building and coal mining and export. The minute we do these things the Chinese and Russians step right into our place. We can’t collapse Russia and China but if we would quit subsidizing them they might do it to themselves.

        • Virginia

          The Panama Canal wasn’t aiding or abetting our enemies. Where did you get that from? Have you been to Panama?

          • Anonymous

            I should have been more clear that it was the giving them away that aided our enemies. I thought it was evident when I implied that those things granted our enemies power when we surrender our rights to them. We built al those things I mentioned and we should have kept them. China is cutting a deal with Nicaragua do build an even larger canal. If a country is to remain powerful it won’t do it by surrendering it’s strategic assets.

    • Anonymous

      Maybe the two are in cahoots. Obama sits back while Putin takes over again. They try to collapse the US economy by spending all the money. I mean for things like 900 people for a 1 day trip to Brussels and the family and friends with security to China. Obamacare costs trillions. Give the rights to corporate patents to China, give the Internet away to communist nations so we can truly have no free speech anymore. Keep the military busy, ciut back on equipment and have no defenses when it is our turn.

      • Anonymous

        It’s possible. Sometimes it even looks probable.

  • landofaahs

    Not much of a surprise there. Even our best allies would knife us in the back if they thought it would benefit them. To think otherwise is naïve to the extreme. The world runs on wealth and power and it will until Christ comes and Runs it.

    • Anonymous

      This is the war since the creation of man. Of course if you believe we evolved from the sea and swamps the conflict is just another problem that our intelligence will either solve or not. No magic, imaginary god to bring us home. Wealth and power, in this dispensation, over rides everything moralistic and even common sense when wealth and power are in jeopardy. That mythological book the Bible lets us know the war has already been won. What happens when the prize is actually ripped away from the dark side is described in allegorical fashion by a prophet seeing the end of this war unfolding. To put that prophecy in the context of our modern world of nation state, spiritual and racial conflict, with the high tech media to ramp everything up, gives hope to those who are God believers and intellectual mind spinning to those who turn to the genius of man for the answers. What do we do to save our nation from the evil desires of countries like Russia, China, Iran ? We will do what man has always done, capitulate or go to some form of conflict and the war since creation goes on until the return of the One.

      • landofaahs

        I cannot disagree with you, nor can I attest to everything you say. I am waiting for the 2 witnesses if it is the time for them. I cannot but help believe it is near. Saying that, I only know that I preach Christ crucified and risen. I find that all the thousands of books I have read in my lifetime are rubbish compared to my good Bible. In it is true wisdom, strength and comfort. May God bless you.

        • Anonymous

          Thanks landofaahs, we are fellow believers. We wait and the whole creation cries out for His return. If I have any wisdom it is by the grace of God. The wisdom is in the Bible but He has to open those truths to those who righteously sick it. God bless you and yours.

  • Anonymous

    The so called mainstream media does so little real investigative journalism. But they sure will bash those like Beck for doing it for them. Reminds me of the Pharisees that bashed the message of Jesus…

  • Perceptions

    But yet we continue on the road of financing unsustainable government programs with foreign money which keeps us at risk of this happening again. In fact it is now worse than ever and this is why Russia is so emboldened now and threatening to drop the Dollar.

  • Ken Olshein

    Russia and China had nothing to do with the gross mismanagement of Freddie and Fannie also they had nothing to do with getting rid of Glass Steagall and they had nothing to do with the trillions of credit swap derivatives sold with nothing backing them. Maybe they wanted to dump their US Mortgage back securities, who could blame anyone for that. Goldman Sachs had more to do with what happened than any foreign country.

    • Mike Nelson

      Do you think there could be a link between the 80 registered communists who are elected representatives within the US Congress?

      Certainly you must acknowledge the link between China’s currency manipulation and the timeline of the “too big to fail” collapse in the US, as well as the lobbyist/corruption correlation, the causation of which is pure power backed by avarice for material wealth, yes?

      Given these basic and commonly documented factors, can you really stand by the notion that politically influential entities like Russia and China are unwilling/unable/uninterested in negatively affecting the US economy and the strength of the petro-dollar? Even now, with the Olympic media event concluded and the newly-minted and sophomorically imbecile media attention on the loss of a single airplane (the Maylay 777) obfuscating coverage of the Crimean coup by Russia, which now has solidly regained control of so much oil (energy) in the East?

      Have you heard anything about the open combat in the streets of Venezuela?

      I agree with your assertion regarding Golden Slacks, but do you not also think that THEY have interests in the success of other nations, and buy put options, and use other financial tools, to profit from the rapid decline of US currency?

    • Anonymous

      And Paulson was at th head of that disaster.

    • Jim Beach

      Right Ken. Our own government had more to do with the collapse than any outside party, using the Community Reinvestment Act to literally force banks to lend to anybody and everybody, scooping up those loans and selling them to their pals on Wall Street. Then, the two clowns most responsible for the meltdown, Barney and Chris, get their names put on over-reaching, crushing legislation know as Dodd-Frank. Are either of them in office now? No. But their pitiful, ill-advised legacy certainly remains.

  • fred bannon

    don’t believe a word Hank Paulson says,Lets just blame the next collapse on Russia, not our own Government.

    • Anonymous

      Wasn’t Paulson the one who handed out billions in TARP fund bucks and forgot to write down who got what?

      • Anonymous

        I kind of remember him trying to explain the collapse of 2008. His reasoning was so confused that he was contradictig his own words.

        • Anonymous

          Looks like, after six years, he finally figured it out. Putin did it.

  • Anonymous

    None of this is blockbuster news. It was known in 2010 that the Chicoms and the Russians had discussed flooding the market with their stakes in Fannie/Freddie. Heck, it was even mentioned in Too Big to Fail, the HBO movie about the financial crisis. It wasn’t this that collapsed the market, it was bloated and overvalued housing, that was leveraged to ludicrous amounts that any sane person would know was not sustainable, and then…a recession hits. The bottom drops out, and people suddenly cannot afford their homes. We need to learn: 1. not to cash out our properties just because we can, 2. borrowing from your friends is a lot better that borrowing from your foes, and 3. budget, budget, budget.

    • Anonymous

      And how long before the US crashes over its debt?

  • Connor

    It would not shock me that Russia and China would take advantage of our corrupt system that Progressives put in place.

    • Anonymous

      And do you think that neither China nor Russia are guilt free in handling their finances? Do you believe that either one is debt free?

  • the Gafa

    Yup! Russians and Chinese officials were the one giving mortgages left and right in the sub-prime market. Putin personally was knocking on the doors of poor bastards and convinced millions of Americans to buy houses they couldn’t afford, and while they were at the bank, to borrow against equity and go buy themselves new car etc.

    Russians offered Chinese to dump stocks that were loosing value, this is not movement against the US, this is typical Wall street 101… Correct me if I’m wrong… :)

    • Anonymous


  • Karl E Hubrath

    Glenn and to the fans of Glenn. I think it is true to say to never mock directly whom you are mocking, but to pretend to mock those that you are really mocking’s person that you are mocking is mocking. This not only strengthens the mock but gives more power to the one that is really being mocked. Chew on that parable. Let me give you a hint. Greedy people are very obvious and 2 dimensional thinking, obvious and predictable. See to greedy people they will bite off their nose to spite their faces, just saying. God bless.

  • Slayer88

    I would say be very very cautious about the timing of this story and the cover it gives both the hawks looking for war with Russia, as well as those looking to try and absolve themselves of any responsibility for what happened and continues to happen with our economy.

  • James Hubbs

    Did we not once claim to have done that to them ? Remember the defense spending that Reagan did. You see this is the hypocracy of this country and our people , it’s okay to do that to some one else and brag about it rub their noses into it then scream foul later when they return the favor. Until we recognize our own hypocracy and mistakes and the violating of other countries Soverignty we are going to be a target by those we have hurt or offended.

  • Anonymous

    Pat’s funny. We need some laughter in times like these.

  • Anonymous

    You want to know where the problem lies with who? Well the buck stops with the Presixent– the antiAmerican Islam terrorist!

    • new2la

      Hence the secret message Obama had with Medved when they didn’t know the mic was still on.

  • Virginia

    I believe it. China and Russia would love to see the US financial system plummet. Goods and services (trade) would then be bought with ruble or the yuan. the US took over the British Sterling in mid 1930….not that long ago. With Obama’s help, China could buy America…lock stock and barrel.

  • DJ in AZ

    Maybe Obama is a Communist sympathizer and a willing accomplice to Russia’s plan?

  • Coffee Fiend

    In this video we find marxist agitator Hussein Obama lying about the 2013 sequester:

  • Cedrik Thibert

    And now USA trashed Russia and does eve worse to China, USA is very smart isn’t it?
    What a mistake those 2 countries have done? Chinese regime is doomed for sure wih the current Stock Market crash, oh well. You seek what you sow.

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