Consider this, a “Wait, wait, there’s more” posting. Jim Bacon just noted the interest of the Chinese and Russians in using the Internet to disrupt American infrastructure such as electrical grids and the like.
Well, Politico reports that the Pentagon has been getting into the act in its own way. Last month, it staged a two-day exercise about how to respond to the threat of foreign nations using whatever economic means available to screw over the U.S.
The two day event near super secret Fort Meade in Maryland worked in a Dr. Strangelove-style “War Room.” Hedge fund managers and economics professors replaced bomber jockeys and nuke theory gurus as the players. Their game: blunt attempts by China, Russia or anyone else to toast the U.S. economy through any variety of plays, such as currency manipulation or shorting stocks.
According to Politico, various scenarios acted out included the collapse of North Korea, the Kremlin playing around with natural gas prices, flare ups between Taiwan and China and other crisis. Players assumed roles of Russia, China and the U.S. China won, since the U.S. and Russia spent so much time one-upping the other that they were diverted.
When you think about it, economics is really the prime reason for many wars. It was behind the American Revolution (not the gleaming thoughts of Patrick Henry, Thomas Jefferson and other rhetoric stars). Ditto Japan’s economic ambitions in Asia. Hitler, of course, was bent on ideology.
War games can be fun. When I was in college majoring in international relations, my dorm was near the Fletcher School of Law and Diplomacy, a big deal foreign affairs graduate school. It was controversial because these were the Vietnam years and Fletcher hosted lots of CIA, Foreign Service and military types. I found some of them interesting because they had actually had experience in the field, unlike many of my professors who were more bent on protest alone.
Anyway, I got to know an Air Force colonel who was doing a mid-career teaching stint at Fletcher and he invited me to participate in a game he was doing with students. It lasted two days without sleep and it was fascinating (although I can’t remember exact details).
The point of the Ft. Meade exercise seems to be that the weapons of the future won’t be Stealth destroyers or F-22 Raptors but Sovereign Wealth Funds, Credit Default Swaps and hot money currency plays.
Might be interesting to know where Virginia, the nation’s No. 2 defense industrial state, fits in with this.
Peter Galuszka
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