How Financial Warfare Could Bring America to Its Knees

As was mentioned here over a week ago, businessmen carry on as if tomorrow will always be the same as today and that nothing bad can happen, yet it is not necessarily their fault because their of their chosen profession — one that is different from those that specialize in espionage or financial warfare. Either way, a complete lack of awareness is a huge national security issue.

One country, Russia or the United States, is de-linking itself from vulnerabilities and going into war prepared while the other is not and exposing its Achilles heel with a ‘kick me’ sign taped to its back. Can you guess which is which?

You only need to follow this site or other similar ones keeping atop of developments like this for a week to draw your own conclusions.

Please see the source link for the video.

 

Financial warfare is coming to the fore. It’s something that’s been talked about for some years, but now it’s actually being played out and practiced. Since 2012 the United States has been in a financial war with Iran. It’s not a shooting war, we’re not invading Iran, but because of their nuclear ambitions, the U.S. has tried to isolate Iran. We kicked them out of the dollar payment system so Iran could not transact in dollars. They said, well who cares, we’ll just transact in Euros or Yen or other currencies.

There’s another financial war brewing right now, which is with Russia around Crimea. Russia of course invaded Crimea. No one – left, right or center thinks the U.S. should use military force in Crimea. We’re not sending the 82nd Airborne into Sevastopol anytime soon, but the U.S. doesn’t want to be seen to be doing nothing, and so we’re engaging in economic sanctions, which is a form of financial warfare.

There’s a big difference, however, between confronting Russia and confronting Iran. Russia has a much greater ability to strike back — and just to show how this could escalate, so we put sanctions on, you know, some mid level bureaucrats, who cares, that’s no big deal.

But recently, we put sanctions on Igor Sechin, who is one of the most powerful men in Russia, close crony of Putin’s, former KGB. Russia might decide to escalate. What could they do? They could freeze U.S. assets in Russia, they could dump U.S. treasury bills, drive up U.S. interest rates, sink our housing market and our stock market, which are sort of propped up by low rates and ultimately, they could unleash their hackers and shut down the New York Stock Exchange, which they’re completely capable of doing.

And people say well, wait a second, don’t we have hackers? Can’t we close down the Moscow Stock Exchange and I say, of course we can, but who wins? The Moscow Stock Exchange is practically irrelevant to global capital markets, but the New York Stock Exchange is the beating heart, so we shut down each other’s stock exchanges, the Russians win.

So, these are the kind of things that could come out of the blue. Most investors aren’t thinking about it at all. Why should they? They’re not expert necessarily in international politics or financial warfare, but if we’re going to have wars that are not shooting wars, that are cyber and financial wars, but capitals markets are the collateral damage that investors can suffer even if they don’t see it coming.

Full article: How Financial Warfare Could Bring America to Its Knees (Daily Reckoning)

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