Will WWIII Be Fought Using “Financial Warfare”? Will The Ukraine Be What Sets It Off?

If there is a next world war, it may not be fought with bullets, missiles and,  bombs. It may be fought entirely with financial instruments and may very well bring the world to its knees.

There was a coup in the Ukraine a few weeks ago. The constitutionally elected president was forced to flee the country and an interim pro-EU government  took over. The US and the EU were very quick to recognize the new illegitimate government of Ukraine. It’s highly probable that intelligence agencies of the US and EU helped to provoke the coup for geopolitical reasons. As a result Russia moved military forces to the Ukraine?Russian border, the people of the Crimean Peninsula voted overwhelmingly to become part of Russia, and internal conflicts continue in the predominately ethnic Russian eastern half of Ukraine. The US and the EU voiced their outrage and together have put visa restrictions and frozen bank accounts certain Russians and have threatened to put more severe sanctions on Russia if she doesn’t back off. Fox News yesterday reported on bipartisan support for more severe sanctions.

“I don’t think Putin really believes we’re going to punish them in that way,” Tennessee GOP Sen. Bob Corker, the committee’s senior Republican member, said on NBC’s “Meet the Press.”

Sen. Chris Murphy, a Connecticut Democrat and fellow committee member, said: “I think the time is now to rapidly ratchet up our sanctions, whether it’s on Russian petrochemical companies or on Russian banks.”

Of course, President Obama has been making the same threats to Russian President Putin. Asylum Watch wonders if these brainiacs have considered the consequences of such actions? Do they really think that Russia won’t respond with their own “financial warfare” weapons? Maybe President Obama is convinced that is the only super power when it comes to financial warfare.

There’s an interesting article in the Telegraph (UK) on the financial warfare capabilities of the US.

The United States has constructed a financial neutron bomb. For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot.

The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century.

“It is a new kind of war, like a creeping financial insurgency, intended to constrict our enemies’ financial lifeblood, unprecedented in its reach and effectiveness,” says Juan Zarate, the Treasury and White House official who helped spearhead policy after 9/11.

You should know that M. Zarate has written a book on the subject and may be prone to hyperbola to promote his book sales. According to the article and Mr. Zarate, the “financial neutron bomb” was created under Section 311 of the Patriot Act. From the Treasury’s web page, we learn:

The USA PATRIOT Act was signed into law on October 26, 2001. Taken as a whole, Section 311 of the USA PATRIOT Act provides the Secretary with a range of options that can be adapted to target specific money laundering and terrorist financing risks most effectively. These options provide the Treasury Department with a powerful and flexible regulatory tool to take actions to protect the U.S. financial system from specific threats.
Zarate tells us that the US has successfully used its financial warfare weapons numerous times. Ironically they were first used in 2002 against Ukraine:

The new arsenal was first deployed against Ukraine – of all places – in December 2002. Its banks were accused of laundering funds from Russia’s organised crime rings. Kiev capitulated in short order.

Nairu, Burma, North Cyprus, Belarus and Latvia were felled one by one, all forced to comply with US demands. North Korea was then paralysed. The biggest prize yet has been Iran, finally brought to the table. “A hidden war is under way, on a very far-reaching global scale. This is a kind of war through which the enemy assumes it can defeat the Iranian nation,” said then-president Mahmoud Ahmadinejad to Iran’s Majlis. He meant it defiantly. Instead it was prescient.

Does Mr. Zarate put Russia in the same league as the pissant countries above? Apparently so. He thinks President Obama as already waited too long to get really tough with Russia. He wants Obama to “take the gloves off”.  The cheerleaders for more severe sanctions against Russia seem to believe that Putin will capitulate when faced with the all-powerful US Treasury. Is that a swarm of flying pigs I see circling over Washington D.C.?

People should be careful what they wish for. Russia and China have some “financial neutron bombs” of their own.

Well, that’s what I’m thinking. What are your thoughts?

8 thoughts on “Will WWIII Be Fought Using “Financial Warfare”? Will The Ukraine Be What Sets It Off?

  1. Great post Jim and very interesting! China has aligned with Russia and we know China is in a great position to bring America to its knees through economic warfare, I certainly hope it does not come to this but we do seem to be on the edge of disaster.

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