Hitting Us Where It Really Hurts

Whether or not “outside forces” were a factor in our 2008 economic meltdown, in the age of cyber warfare, the possibility of such an attack on the U.S. financial infrastructure is a scenario worth paying extremely close attention to. It’s a huge target, it’s far from invulnerable, and the potential for crippling economic damage and chaos cuts to the core of our very way of life.

Financial terrorism suspected in 2008 economic crash

Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.

The unclassified 2009 report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman, a copy of which was obtained by The Washington Times, states that “a three-phased attack was planned and is in the process against the United States economy.”

While economic analysts and a final report from the federal government’s Financial Crisis Inquiry Commission blame the crash on such economic factors as high-risk mortgage lending practices and poor federal regulation and supervision, the Pentagon contractor adds a new element: “outside forces,” a factor the commission did not examine.

“There is sufficient justification to question whether outside forces triggered, capitalized upon or magnified the economic difficulties of 2008,” the report says, explaining that those domestic economic factors would have caused a “normal downturn” but not the “near collapse” of the global economic system that took place.

Suspects include financial enemies in Middle Eastern states, Islamic terrorists, hostile members of the Chinese military, or government and organized crime groups in Russia, Venezuela or Iran. Chinese military officials publicly have suggested using economic warfare against the U.S.

Read the report:

Economic Warfare: Risks and Responses

See also:
Financial Terrorism Suspected in 2008 Economic Crash
Did ‘financial terrorism’ cause the economic crash?
Did China or Jihadists try to bankrupt America? Pentagon report reveals financial terrorists may have triggered economic crash
Report: Economic 9/11 May Have Taken Place
Financial terrorism suspected in 2008 economic crash
Was the U.S. a victim of an economic 9/11 in 2008?
Blame Terrorists, Not Wall Street, for the Recession?

If you think about it, there’s very little that could be called a paper trail regarding today’s financial records and transactions world wide, it’s all manipulated and stored electronically at a speed and complexity that defies human oversight.

/definitely a fertile battlespace for a sophisticated enemy looking to bring the United States down on her knees in financial pain

Chinese Dragon And American Eagle Headed In Opposite Directions

While we unilaterally disarms under Obama, the Chinese are strengthening their military capabilities, specifically gearing toward a confrontation with the United States.

China Strengthens Strategic Capability, Report Says

The U.S. Defense Department said in a report issued yesterday that China continues to strengthen its strategic capability through updates to its nuclear and missile systems, the Associated Press reported (see GSN, June 3; Anne Flaherty, Associated Press/Yahoo!News, Aug. 16).

. . .

Beijing’s aggressive spending on its effort to become a top military force has been recognized for some time, AP reported. China has rejected U.S. concerns about its defense program. Frustrated by Washington’s military support for Taiwan, it has halted U.S.-Chinese military contact that could address the issue.

“The limited transparency in China’s military and security affairs enhances uncertainty and increases the potential for misunderstanding and miscalculation,” the report says (Flaherty, Associated Press).

U.S. Senator John Cornyn (R-Texas) said the Pentagon document “paints an alarming picture, despite its ‘glass half full’ perspective,” the Washington Times reported.

“It is clear that China is aggressively expanding its military capabilities, which appear to be aimed at limiting American strategic options in the Pacific,” he said. “This troubling reality is inconsistent with China’s supposed interest in fostering a peaceful, stable region” (Bill Gertz, Washington Times, Aug. 16).

Read the report:

Military and Security Developments
Involving the People’s Republic of China
2010

See also:
U.S. Sounds Alarm at China’s Military Buildup
Economic powerhouse China focuses on its military might
Pentagon: China Continues to Expand Military Capability
The Chinese Military Challenge
China Could Intervene at Military ‘Flash Points,’ Pentagon Warns
China threat: Now you see it, now you don’t
Chinese military’s cyber-attack capabilities mysterious: Pentagon
China Fires Back on U.S. Report
China warns U.S. military report threatens ties
Pentagon’s China military report ‘ignores objective truth,’ says China
Chinese Government Rejects Pentagon Report on Country’s Military Ambition

I used to think that, given our vast Pacific superiority in the air, in space, and on the sea, there was no way in Hell that China would ever dare to invade Taiwan or otherwise engage the United States in a military conflict. Now, I’m no longer sure that’s necessarily true.

/every day, they get stronger, we get weaker, and the gap in the military balance of power narrows toward parity

Make Room Under The Bus

Forsaking Taiwan?

Some key Cabinet picks bode ill for Taiwan in its struggle for independence from Red China. Obama’s intelligence czar, for one, doesn’t think the key island democracy is worth protecting.

In fact, Adm. Dennis Blair regards Taiwan much like the Chinese Communists regard it — as a nuisance. His exact words are more colorful. At a late 1999 Capitol Hill meeting, Blair told staffers that Taiwan had become “the turd in the punch bowl” of U.S.-Chinese relations, as Bill Gertz reported in his book “The China Threat.”

If Taiwan were to declare itself an independent nation, Blair asserted, “I don’t think we should support them at all.”

The remark was viewed by at least one Senate aide who attended the closed-door meeting as a clear sign that the Clinton administration had aligned itself with the communist regime in China against democratic Taiwan, an alignment that seems to be repeating itself with this administration.

. . .

It’s not as if Blair’s negative remarks were a secret. Sen. Kit Bond, R-Mo., asked Blair about them in written questions he submitted to the nominee outside the public hearings. (In his answers, Blair copped to the “turd” comment, but said he was referring not to Taiwan but to some unspecified action by a former Taiwanese government official.)

Why would senators have to keep such important questions private, when the fate of Taiwan could hang in the balance — along with possibly Japan and South Korea, and potentially the entire Pacific island chain stretching to Hawaii?

Answer: Because Sen. Dianne Feinstein is chairman of the Senate Intelligence Committee, which unanimously approved Blair as Obama’s top intel adviser. She and her billionaire husband, who does brisk business in Beijing, are notorious China boosters. Not surprisingly, she praised Blair throughout his nomination hearing.

/raise your hand if you seriously think Obama would lift a finger to defend Taiwan