A few weeks ago in this Blog we warned that World War III was beginning and that at its heart, it would be cyber-economic. When Russian troops massed at Ukraine, many thought that perhaps we were right about a new World War but that it would be conventional in nature. Events in the last 24 hours, however, have demonstrated that this is indeed a Global Economic War.
Consider the flurry of headlines that have appeared on Drudge. First, the West threatened Moscow with serious sanctions. The Obama Administration developed sophisticated economic warfare plans. Some even spoke openly about American efforts to shut down the Russian banking system to punish their aggression. This is not unprecedented. We have used such tactics before as documented by Juan Zarate in his book, Treasury's War.
Next, the Russian stock market started to collapse as did the Ruble. Major news sources credit these effects as causing Putin pause and a willingness to pull his troops back. Some were even quick to declare victory.
Financial analysts openly boasted that the markets were more powerful than global leaders. The CNBC headline was:
But that's not the end of the story as the Russians responded with threats of their own. A top Russian aid is now threatening to collapse our markets, take down our financial system, and crash the dollar in retaliation if we impose sanctions:
"An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system."
–Kremlin economic aide Sergei Glazyev.
Moscow: Washington sanctions would cause crash… by presstv
This is exactly what we have been warning about since 2008, first in our Pentagon report, then in this Blog, our New York Times bestseller book, Secret Weapon; How Economic Terrorism Brought Down the U.S. Stock Market and Why it Can Happen Again, in various news articles and interviews, and finally in our new book, Game Plan; How to Protect Yourself from the Coming Cyber-Economic Attack.
This is not some conspiracy theory. Privately, and in some cases publicly, some of America's top defense and intelligence experts have acknowledged that our findings are precisely on point. I have been called into private meetings wherein the truth is acknowledged although most are afraid to admit it publicly. They don't want to panic the American people. We write this not to cause panic but to stimulate preparation. This is a Global Economic War and you deserve the right to protect yourselves.
While many dismiss the Russian threat, others are perhaps more aware of the risks. For example, a currency war could begin in earnest and collapse the global economy. Cyber attacks, already the norm, will only increase. There is the risk of an EMP or other attack that could wipe out the electric grid. [The Russians have even warned of this in private negotiations.]
It is important to understand that the Chinese have sided with Russia. We have long warned of this and the risks that it posed. And, despite the naively optimistic view that China would never harm us economically, the truth is that the current "Chimerica" arrangement of mutually beneficial economic interests is doomed. We aren't mutually dependent but rather "co-dependent." The Chinese are warning us that they will move away from the dollar. And, the Russians believe that if Russia and China act together, they can win the economic war. Even DoD sponsored war games have come to that conclusion.
Hopefully, in regard to the current escalation with Russia, cooler heads will prevail and the world will turn back from the brink at least for the time being. But, make no mistake. This is a new kind of warfare. It is global. It is economic. If we're not careful, it will quickly escalate into World War III. With or without conventional battles, it will be devastating.
It's all very scary. So where do you put your trust? In money? In armies? As for me and my house, we will trust the Lord (Joshua 24: 15).