Financial Wars
Disrupting Enemy Commerce, Industry, Domestic Stability, & Life
Currency Wars EU Notes
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This site explores strategic and tactical rationalizations, activities, and consequences of financial wars. Appropriate and scaled use of financial warfare can devastate an enemy with no loss of human life or use of military resources. Financial wars are increasingly feasible. There is a growing set of tools available including the use of automated systems, financial markets, and banking policies and procedures currently implemented across the global economy. Financial wars can be waged in consort with allies to disrupt and defeat an enemy.

Rationale
World War has evolved into financial warfare.
The weaponry of WW III includes commodities, corporate assets, and real estate, often in the form of civilian national assets. Examples include commodities such as oil, corn, rice; corporate assets such as the Rolls-Royce automobile company, Lenovo Computer Corporation; real estate such as the Chrysler Building, Sears Tower, the Panama Canal, the New York Port Authority. There are myriad examples in all industries crossing all industrialized and several primitive nations' borders.
The ammunition of World War III is money. Money is represented by various currencies purporting to be sovereign establishments and is denominated in several valuation models. These valuation models may consist of baskets of currencies, specific individual currencies, or openly fiat currencies. Many nations' currencies are not backed by either silver, gold, or a bimetal standard. Some currencies are pegged to other currencies or baskets of currencies.
Today's form of war is a globalized manifestation of old-style nationalization of foreign assets upon domestic soil.
The WW III end objective is to disrupt enemy commerce, industry, domestic stability, & daily civilian life.
Development & Disruption
There are several momentous changes taking place in the 21st century. These changes are a result of the psychologically disruptive impact of the new millennium's order, including the widely visible spectrum of global terrorism denoted by events of September 11, 2001. However, the most pungent force driving this World War is the rapidly developing economic development that is evolving localized agrarian societies into nationalized industrialized economies. Each new industrialized economy is dependent upon and provides for other unseen globalized economies. Unseen ethereal relationships are perceived but there is little understanding of how to cooperate for mutual development.
The relatively straightforward implementation of technology and its wide-ranging practical applications permit the building of all-new, large-scale economies. This development promises numerous massive populations comfortable life styles previously afforded only within developed nations. Attempting to manage their people's expectations while concomitantly growing their economies will convert some politicians into amateur warriors.
Global stock markets in bear mode yet peppered with strong internal rallies, ongoing deflating real asset prices, and rising commodity prices produce market chaos which inhibits clear valuation trend expectation. These conditions promote uncertainty. Market chaos is the culmination of market sputtering that began in March, 2000, that was mistakenly interpreted as asset valuation corrections.
Financial war will likely eventually involve multi-nation competitive currency devaluations, revaluations, new gold-based assignments, and various pegging adjustments to other nations' currencies. This is the essence of currency wars.
Currency Wars
Strong currencies are only strong relative to other currencies. It is the potential for this relativity relationship to be manipulated that can lead to currency wars. Relative value is directly impacted by the effective use of specific currencies by trading partners.  Read more here.
Would any experienced, rational, intelligent participant in macro and micro economic activities believe that, with as much exogenous and endogenous meddling by central banks, political forces, and multi-national bank entities over the last decades, but especially since 2008, there might exist a global currency regime or a domestic currency that is predictable or not vulnerable to manipulation and catastrophe?

Currency imbalances, manipulations, and instabilities are as near as the preceding run-on sentence.
 
Do you believe that the bidding up of oil's price is a strategy being used by non-state, quasi-terrorist groups funded by wealthy Middle Eastern sovereign wealth funds to wage financial war against Western civilization? Using this strategy, sovereign wealth funds increase in value & quasi-terrorist groups slow global economic development.
That seems plausible.
That is not plausible.
 I have no idea.
January, 2008 -- The US' failing culture continues to infiltrate major financial institutions that are now failing because too many Americans are walking away from their financial and moral obligations by not meeting their mortgage commitments. But those people were primarily sub-prime. Therefore the industry knew -- but lent for short-term gains -- that the sub-primers would fail to pay once their rates jumped up.
Less than two years ago Americans were panicking over Abu Dhabi's investment in several US port operations. Today Abu Dhabi's investment arm owns major portions of Wall Street's largest, one-time most revered financial institutions.
Abu Dhabi's investment arm invested $7.5 billion in Citigroup in late November which gave it a 4.9% position. Citigroup is searching for another $8 to $10 billion from Chinese sovereign funds and Saudi sources to stave off further exposure to catastrophe in the next days when it announces what used to be called earnings, but is now better known as losses.
China's communist government's sovereign fund known as Temasek owns near 10% of Merrill. MER is expected to soon receive $3 billion to $4 billion from a Middle Eastern government investment fund and is attempting to sell more of itself to members of the Saudi royal family. The Financial Times reports the Kuwait Investment Authority may be a significant investor in additional portions of MER. The Swiss-owned UBS has accepted $9.75 billion from another Singapore state fund.
These weakened US institutions are desperately questing for tens-of-billions of dollars more before reporting earnings (losses). China's communist government has squashed the potential $2 billion investment in Citigroup by the China Investment Corp. Citigroup has asked, and continues to negotiate with, the Government Investment Corp. of Singapore for an investment of at least $5 billion. These investments do not come easily and without compromises on the part of the borrowing institutions.
Over recent months Chinese financial institutions have provided funding through share purchases of struggling Wall Street firms. China Investment Corp., the country's sovereign wealth fund, recently invested $5 billion in Morgan Stanley.
China Development Bank was established in 1994 and is in the initial stage of become a commercial lender. On December 31, 2007, it received a $20 billion infusion from China Investment Corp.
Recent investments in some of the major Wall Street financial institutions as of late 2007
It appears the Chinese communist government is pulling back from its aggressive foray into the capitalism of failing banks.
It appears the Chinese communist government is waging financial war passively against major US financial institutions.
1.  Consumers can purchase products at lesser prices when manufacturing moves from high cost labor nations to lower cost labor nations. Agree
 Disagree
2.  Consumers may sometimes purchase improved products at lesser prices when manufacturing moves from high labor cost nations to lower labor cost nations. Agree  
 Disagree
Previously unemployed people in developing economies take jobs at lower wages than US workers demand and strike over.
Agree        Disagree
Unemployed people living in poverty in developing nations have new opportunities to work, live decently, and raise families.
Agree        Disagree
Low-skilled American workers -- for example, those who bolt bumpers on cars, thread bobbins, monitor union crews, etc. -- should plan for and expect to lose their jobs in tomorrow's modern, mechanized, automated, globalized economic environment.
Agree        Disagree
People should understand and see themselves as employees as well as consumers.
Obviously        I don't understand.
Newly employed people in developing economies will gain if they perform efficiently and their nation is seen as a highly productive, civilized nation where it is easy to business.
Obviously        I don't understand.
Low-skilled American workers can improve their lifestyles in the emerging global economy if they get additional education and the better jobs that then become available for them.
Agree        Disagree
Do you have a question regarding financial wars?
Relaxing Toward Deflation
Economic indicators go up and down. The only certainty is that they will fluctuate. Fears of inflation returning in its 1970 through 1982 mode should abate.  Read the story.
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