Financial Terrorism Suspected in 2008 Economic Crash Pentagon study sees element

The Washington Times ^ | February 28, 2011 | Bill Gertz

[khnyny]

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.

In an interview with The Times, Mr. Freeman said his report provided enough theoretical evidence for an economic warfare attack that further forensic study was warranted.

“The new battle space is the economy,” he said. “We spend hundreds of billions of dollars on weapons systems each year. But a relatively small amount of money focused against our financial markets through leveraged derivatives or cyber efforts can result in trillions of dollars in losses. And, the perpetrators can remain undiscovered.

“This is the equivalent of box cutters...

[LomanBill]

[who are the primary cause that this could occur.]

Human nature - predictable and exploitable human nature - is the cause that this could occur.

Thus:

"TO SECURE THESE RIGHTS, governments are instituted among men"

A Republic is a system, of governance characterized by the Rule of Law.  When the Law fails, the Republic fails --- and if the American Republic fails then government Of, By, and For the People - fails.

FReepers know that kind of failure is simply not acceptable.

[the invisib1e hand]

Guess they finally read my favorite blog.

[LomanBill]

>>"Nothing to see here?"

 

Plenty to see. HERE.

 

Start prosecuting, HERE, and follow the money - instead of being suckered into chasing ghosts, tit for tat, across some foreign countryside again.

[happygrl]

I’ll take Russian Mob for 1000, Alex.

[steelyourfaith]

bttt

[jmcenanly]

ping

[expat_panama]

Ah yes, our favorite national pastime --blaming problems on evil foreign conspiracies.  OK, so it's true that America's got enemies doing this kind of stuff, but that's not the point. 

First, what happened in '08 had a lot of other causes besides the Chicoms, mortgages, corporate greed --even today's IBD was blaming it on oil.   The thing is that all of these factors came into play and all were building up for years beforehand. 

Second, America has enemies, it always has and it always will.  This is nothing new and what's great about US prosperity is the fact that it exists in spite of evil foreign conspiracies.

[khnyny]

Ah yes, the rule of law. Curiously absent in our country in a lot of instances, especially during the financial meltdown.

Human nature is right on the money too (no pun intended) - it’s amazing what most people will do for a little power and a little money. Even so-called good people’s principles fly right out the window.

[Navy Patriot]

Human nature - predictable and exploitable human nature

Certainly you are correct.

However, the same human nature was inherent in Americans before the misbehavior, and did not occur in housing until the leftist/Federal enforcement of CRI without regulatory oversight.

That act effectively punished responsible banks for responsible lending practices, and rewarded irresponsible individuals, speculators and manipulative associated organizations.

Overall, human nature is responsible, and the rule of law is the best control of the bad parts of human nature. I was addressing this particular housing/banking fiasco, and the primary cause, which was to flip the rule of law to enforce the irresponsible and punish the conservative. Without that action none of this would have happened.

[Navy Patriot]

We should not divert attention and blame from the socialist left, DemoRats and Federal bureaucrats involved.

They are absolutely guilty beyond doubt.

Additional bad guys, opportunists, and players are likely to be involved and we can give them attention after the Rats are in prison.

[algernonpj]

Two of my favorite Greenspan articles:
"I made a mistake," Greenspan said, "in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms."

Greenspan thinks more H-1Bs can solve housing crisis

[khnyny]

A Republican (and there are more than one) who is responsible for the meltdown, but who will never be charged, is Phil Gramm.

Both parties are responsible for what happened. He became a lobbyist for a Swiss bank after his “US service” in the Senate.