by KEVIN D. FREEMAN
Two of the biggest news stories of the year are 1) the Russian invasion of Ukraine, and 2) the debate over High-Frequency Trading following the publication of Michael Lewis’ new book Flash Boys. While the two stories seemingly cover very different topics, from the view of global economic warfare, the two are highly related.
As we have shared at numerous points, Russia’s invasion of Crimea has been accompanied by dramatic threats of cyber-economic warfare from both sides. From the American side, we have introduced a series of sanctions and promised escalation as needed. The Russian threats have been even more dramatic. They have indicated a willingness to destroy our financial system and even bring down the dollar as reserve currency. Presumably, this would include a serious market crash. Interestingly, Voice of Russia used the words “secret weapon” (perhaps borrowing from the title of our first book) to describe the economic attack they threatened to unleash against our economy.