Economic Warfare: Risks and Responses Analysis of Twenty-First Century Risks in Light of the Recent Market Collapse Kevin D. Freeman, CFA Cross Consulting and Services, LLC Originally published June 2009 The views and conclusions contained in this document are those of the author and should not be interpreted as necessarily representing the official policies, either expressed or implied, of the Government. The report was originally published under contractual arrangement with a sub- contractor of the Department of Defense Irregular Warfare Support Program (IWSP) per contractual arrangement between the sub-contractor and Cross Consulting and Services, LLC. Per that contract, ―IWS(P) may use the work product and reports in related government support efforts with proper attribution.‖ This copy is provided to IWSP with full permission to distribute to the Financial Crisis Inquiry Commission for their review and inquiry. The author and Cross Consulting and Services, LLC retain copyright and other intellectual property rights. Kevin D. Freeman, CFA Cross Consulting and Services, LLC Tel: 866-737-2728 Fax: 877-201-2637 E-mail:
[email protected] Economic Warfare: Risks and Responses Executive Summary Serious risks to the global economic system were exposed by the crisis of 2008, raising legitimate questions regarding the cause of the turmoil. An estimated $50 trillion of global wealth evaporated in the crisis with more than a quarter of that loss suffered by the United States and her citizens. A number of potential causative factors exist, including sub-prime real estate loans, a housing bubble, excessive leverage, and a failed regulatory system. Beyond these, however, the risks of financial terrorism and/or economic warfare also must be considered.