Financial Wars May Replace Ground Troops

June 15, 2014 at 11:33 AM

economyIn fact, there is a good amount of evidence as pointed out by Jim Rickards and others, that at least to some extent, this has been occurring already with countries involved in cyber and financial attacks against another country.

In The Death of Money – The Coming Collapse of the International Monetary System – author Jim Rickards builds his case to support the title of his book via intricate terms and scenarios, scenarios that have already taken place in the world. Though many would like to believe that capital markets are fail-safe, the truth of the matter is that Rickards paints a picture of capital markets “are anything but fail-safe.” [1]

Rickards refers to a situation in which the United States put the huge squeeze on Iran beginning in February 2012, essentially banning “Iran from the U.S. dollar payments systems controlled by the Federal Reserve and the U.S. Treasury.” [2] This began a series of events that ultimately created 100% inflation in Iran, a run on Iranian banks and caused a food, gas, and consumer goods shortage, as well as a currency collapse.

The Iranian government for its part, fought back by dumping U.S. dollars and purchasing gold, which it then used to buy (or “swap”) for things it needed in Iran. Of course, the United States did not sit idly by, but did what it could through the U.S. Treasury to announce “strict enforcement of a prohibition on gold sales to Iran.” [3] This occurred in July of 2013. This enforcement was essentially directed at Turkey and the United Arab Emirates (UAE), which had been the largest sellers of gold to Iran so far.

Interestingly enough, Rickards also points out that the enforcement of this prohibition “was a tacit recognition by the United States that gold is money, despite public disparagement of gold by U.S. Federal Reserve officials and others.” [4] Keep that in mind as things progress globally toward a one-world company (financial system). For more information on whether or not you should buy gold or silver, I have written another article that may provide information as you sort through the process.

The situation with Iran is convoluted too, as one might imagine. According to Rickards, Iran uses banks in China and Russia to hide its money. Is it any wonder why both Russia and China have vocalized the fact that they want to move away from having the U.S. dollar as the world’s reserve currency? It’s happening now and many are simply oblivious to that fact.

What the U.S. did to Iran (and forget whether or not you think it was right or wrong for now) was nothing less than financial warfare. The U.S. has done something similar to Syria that “caused the Syrian pound to lose 66 percent of its value in the twelve months from July 2012 to July 2013. Inflation in Syria spiked to an annual rate of 200 percent as a result. The Syrian government was forced to conduct business in the currencies of its three principal allies – Iranian rials, Russian rubles, and Chinese yuan – because the Syrian pound had practically ceased to function as a medium of exchange.” [5]

Rickards notes numerous situations in which cyber-attacks have occurred on either government institutions, financial centers, or both. At least some of these have been little more than fishing expeditions, apparently to see how far the hacking could go before being detected. Other situations – whether due directly to deliberately hacking or computer malfunctions – have caused huge financial problems.

One such scenario is known as the Knight Capital fiasco and occurred in August of 2012. This took place because of “a software error caused a computer to go berserk and flood the New York Stock Exchange with phony orders. Knight accumulated $7 billion in unwanted stock positions in a matter of minutes and suffered $440 million in losses to unwind them. While the disaster was taking place, no one at Knight could identify the problem’s source and no one thought to pull the kill switch. Finally, the NYSE, in self-defense, blocked Knight from its systems.” [6]

This was an accident, a malfunction of a computer system. However, other scenarios involving real hacking are also noted by Rickards that have caused real problems.

“The purpose of financial war is to degrade an enemy’s capabilities and subdue the enemy while seeking geopolitical advantage in targeted areas. Making a portfolio profit has nothing to do with a financial attack. If the attacker can bring an opponent to a state of near collapse and paralysis through a financial catastrophe while advancing on other fronts, then the financial war will be judged a success, even if the attacker incurs large costs.” [7]

Rickards says that officials at the Treasury and the Federal Reserve often downplay or even dismiss any concerns related to a financial war and he says they do this because they do not thoroughly grasp all that is entailed in the process. In my previous article – WHAT is Coming… – I highlight Rickards’ comments that speak of the fact that he is concerned that what he wrote in his book, The Death of Money, is coming true faster than even he anticipated.

The real difficulty lies in the fact that there are wars and rumors of wars constantly throughout the world. Besides this, some countries are going through severely difficult financial times and there appears to be no end in sight. Financial stability is what any country wants for its citizens. When that stability is absent, anything can happen.

What we’ll see in the next 24 months (according to Rickards) may well be a total collapse (death) of the current monetary system that is used throughout the world. When that happens, something else will rise to replace it. We may well be living on the cusp of whatever is scheduled to be revealed next.

 

[1] The Death of Money, Jim Rickards (2014), p. 63

[2] Ibid, 54

[3] Ibid, 55-56

[4] Ibid, 56

[5] Ibid, 57

[6] Ibid, 60

[7] Ibid, 61

Entry filed under: Global Elite, Politics, Religious - Christian - End Times, Shadow Government.

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