Wednesday, March 02, 2011

Terrorists caused the 2008 collapse? Maybe not

The Right Wing Daily Online in the UK has this story about an assessment that the 2008 US collapse was caused by terrorist.

'Financial terrorists bankrupted America': New Pentagon report blames U.S. enemies for financial crisis | Mail Online: "The 2009 report, Economic Warfare: Risks and Responses, said financial terrorism by Jihadists or countries such as China may have cost the global economy $50 trillion in a series of co-ordinated strikes against the U.S. economy."

The story goes on to talk about a few secret traders, bear runs, and a 3 phase attack which somehow brings in US national debt.

Kind of chilling reading, but this is the Daily Mail. A review on Google News sees that what sounds like the biggest story in history has not got legs yet. A more measured look Atlantic Wire debunks it:

Blame Terrorists, Not Wall Street, for the Recession? - The Atlantic Wire: "But not many accept Freeman's analysis. The government's Financial Crisis Inquiry Commission says the 2008 crash happened because a lot of big loans were given out to people who couldn't afford them, and a lot of firms bet on those loans. And Yale's Paul Bracken, who has studied economic warfare, sees 'no convincing evidence that 'outside forces' colluded to bring about the 2008 crisis. ... Foreign banks and hedge funds play the shorts all the time too. But suggestions of an organized targeted attack for strategic reasons don't seem to me to be plausible.'"

Really blaming the 2008 on traditional enemies of the US like China (like they would gain from losing their largest consumer population) or Al Qaeda (really? That just sounds strange) for a collapse started with millions of people buying homes they could not afford strikes me as just a Think Tank trying to wrap up the largest failure of Capitalism since 1929 (only 80 years before) in a nice Military Industrial complex story.

If we follow Freeman's report a number of conclusion that traditional Conservatives would like emerge:

First the Capitalist system that exists in America has nothing wrong with it, the collapse was conducted from outside.

Therefore to secure the economy the levels of defense spending need to increase vastly.

And Freeman points to the national debt as a part of a third phase of the attack, so slashing government spending is just required to protect us from China and Bin Laden.

One has to wonder how people get these jobs?

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