A.I.G. Prosecutes London Effort to Destroy U.S. Treasury

Time has come to end the "special relationship" with the U.K.

His mouth is most sweet, Yes, he is altogether lovely.
—Song of Solomon

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The bulk of unregulated derivative securities in American International Group's huge Credit Default Swaps portfolio were created in City of London offshore banking centers. So, what conclusion might be drawn from the company's apparent disregard for its precarious financial position revealed in the disclosure that, A.I.G.'s financial products division is set to pay executives bonuses in the amount of $165 million?

Could financial industry insiders scream any more loudly, "The system is bankrupt!" Why else would these people make such a blatant move to get while the gettin' is good? Believing a game of financial chicken is playing out — with the utter bankruptcy of the securities-based financial system already exposed — one sees the target obviously is the U.S. Treasury. Destroy its credibility, then adversaries of the United States of America are in better position to dictate new terms of global financial engagement.

So, here is hoping President Obama uses the occasion of the upcoming G20 summit in London on April 2, 2009 as an opportunity to frustrate this effort. Treasury simply must be defended at all costs, even at the price of one so-called "Special Relationship."

—Tom Chechatka