Flash crash and the Obama hoax

When a fake news bulletin was distributed after the Associated Press’s Twitter feed was hacked on April 23, the stock market instantly dropped a full 1 percent. 

On his Global Economic Warfare website, Kevin Freeman tackles the implications of the fake tweet on the market, and how market manipulation can be used as a financial warfare tactic.  Read his important posts here and here.  An excerpt follows:

A Single, Man-Made Stock Market Crash is a New-Concept Weapon

When the two PLA Colonels wrote Unrestricted Warfare in 1999, they listed “a single man-made stock market crash” as one of three specific new-concept weapons for the 21st Century. They called it financial warfare.

We have been warning about market manipulation for several years, first in our report for the Department of Defense and then in the New York Times Best-Seller, Secret Weapon. Yet, most in the intelligence and defense community know little about the financial markets. And, those who understand the markets generally know little about defense. Unfortunately, our enemies have studied both.

This week, we saw a hacked Twitter account used as a weapon resulting in a mini flash crash for stocks. Even as the market recovered in minutes, estimates are that there was something like $150 or $200 billion lost even if only briefly. We mentioned this in an earlier post.

While any human could clearly see that the White House was not bombed as the hacked tweets claimed, computer algorithms that monitor social media sites could not tell the difference. As a result, massive sell programs began and other high-frequency algorithms picked up on it.

The Syrian Electronic Army claims that they were the source of the false tweet…

Mr. Freeman also included this graphic which showed the plunge in trading.  The person or entity responsible for the planned Twitter forgery could have anticipated the miniature flash crash and hedged against it in order to profit from the hack:

Freeman: Markets were struck by Islamic terror

Kevin Freeman, author of Secret Weapon: How Economic Terrorism Brought Down the U.S. Stock Market and Why It can Happen Again, says that Islamic terror states, sovereign wealth funds of the Middle East, Muslim Brotherhood and Al Qaeda followers, and former and current Communist regimes of the world, were partly to blame for the financial collapse of 2008.

Apologies for the wobbly Youtube bootleg somebody uploaded from Mr. Freeman’s Jan. 18 appearance on Glen Beck TV:

Sharia law allows stock trades—jihadists rejoice

Investing in the stock market is considered halal by most Muslims because the stockholder theoretically owns a portion of the company, and the dividends or increase in stock price are genuine “profits,” not riba.

Stock market activity is probably even more acceptable when conducted to benefit jihad, because those who strive with their wealth for jihad are rewarded doubly by Allah according to the Hadith.

So the terrorists are at liberty to put their money into the stock market, as they have been doing in India.  From the Press Trust of India on Dec. 16:

10 cases of terror funding via stock market in last 3 yrs

The Financial Intelligence Unit (FIU) of the Finance Ministry has received information on 10 suspected instances of terrorist financing using the stock exchanges in the last three financial years, Parliament was informed today.

The FIU received five Suspicious Transaction Reports (STRs) during the 2009-10 financial year, four during 2010-11 and a single case in the current fiscal (up to November), Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

The STRs, “suspected to be linked to terrorist financing, (have been) received from intermediaries of stock market such as stockbrokers, asset management companies, etc, and disseminated to intelligence agencies by the FIU,” Meena said.

He also said the STRs have been linked to money laundering. These cases will be investigated by the intelligence agencies, he said.

The FIU, is the national agency responsible for receiving, analysing and disseminating information related to suspect financial transactions.