Financial War: The Invisible Conflict
An economy is the basis of warfare. If an enemy that possesses financial strike capabilities and overall advantage destroys our financial stability, hurts our economy, shake our people’s faith in the government before the start of traditional land, sea, space and air conflict, he can destroy our stability and achieve victory without fighting or compel us to commence battle under unfavorable conditions. Compared to land, sea, space, air and network battlefield, financial war should be considered a kind of outside attack. […]
Delivering a blow to the opponents economies leads to capital outflow, handicapping said economies’ ability to fight crisis, real economic loss, deteriorating trade conditions, large scale enterprise bankruptcy and unemployment, then ultimately political-social instability; loss of confidence in the government and possibly mistrust in military operations in a targeted country are good preceding conditions for the start of traditional warfare. […]
The standard procedure used to short sell in a country appears to be:
- Identify key industries, regulatory controls, investor psychology, information channels as well as overall political, economic and social stability.
- Identify weakness of key industries, market mispricing.
- Drive speculative money into said industries via legal channels and illegal ones like black market brokers to inflate stock prices further.
- Deploy, prepare in advance.
- At inflated levels, secretly dump stocks in said industries through middle-men and shell companies.
- Make use of financial analysts, news media to broadcast negative market moving news such as discrediting analysis reports, reporting fraud, negative information of high level management, professional scandal to incite investor panic followed by dumping.
- Use foreign bodies to cast doubt on regulatory controls, affected NGO’s, media in order to cast doubt on more professions, stock price valuation of more enterprises ultimately cascading into a stock market depression.
- Exploit local conflicts, incidents to build very bearish forecast of entire economy causing foreign investment to exit the country.
- When target country’s stock market, currency exchange rates fall to low levels, re-enter the market to buy up and control the entire economy at one fell swoop.