Pentagon Report Predicts Phase Three Economic Attack

An unclassified 2009 Pentagon contractor report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman is the focus of an important article by Bill Gertz.  The Gertz article, "Financial terrorism suspected in 2008 economic crash", appeared in the Monday edition of The Washington Times. Although most of the Gertz article focuses on "the first two phases", the most important information for us today is the prediction of the "PHASE THREE ATTACK":

The Pentagon report states that the evidence of financial subversion revealed that the first two phases of an attack on the U.S. economy took place from 2007 to 2009 and “based on recent global market activity, it appears that the predicted Phase III may be underway right now.”

The entire one hundred and eleven page report is available online at here at Scribd. The key section entitled "Phase Three: Collapse the Dollar, Bankrupt the Treasury" appears on page 66.

Based on the assumed nature of Phase One and Phase Two, a Phase Three attack would likely involve dumping of U.S. Treasuries and a trashing of the dollar, removing it from reserve currency status. This is clearly foreseeable as a risk and even could float under the cover of a natural outcome in much the same way that Phases One and Two potentially have been hidden.

The implications are extremely serious. If the dollar were not the reserve currency, there would be a mass dumping of Treasury instruments by foreign holders. Treasury interest rates would skyrocket, further worsening the annual deficits due to sharply higher interest payments on expanding debts. The Treasury would have to raise taxes dramatically, further dampening growth or the Federal Reserve would be forced to monetize the debt, worsening inflation concerns. Pushed to the limit, could the U.S. dollar would follow the path of the German currency in Weimar Germany following defeat in World War I.

This scenario in the 2009 report is very similar to that now being laid out by Porter Stansberry

and separately by Lindsey Williams

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UPDATE - Glen Beck's coverage of the Phase Three Attack