Economy Warfare

Economy has since been part of human civilization. Together with other social system, it make civilization sustainable. The influence of economy become greater when the standard of living of each become better. "Too much to lose" and "Something to lose" make military solution less desirable when come to political dispute. Invasion are no longer within the scope of physical intrusion. Economy has evolved into a tools to extend one nation power to control over others. It has now become a very important national security matters. In modern day, who control the economy take command.

The first economy weapon - IMF. IMF was established on July 22, 1944 at Bretton wood conference to stabilize international exchange rate and assist the reconstruction of international payment system after post-worldwarII. It since become a tools of great western civilization to exert their influence economically to the rest of the world. It was a desperate time for most of the nation to recover from it devastating state after post-war period. Resources was scarce. It was very justified for most developing countries to turn themselves to IMF for monetary assistance. The IMF then will impose rules and regulation to country who ask for assistance, on how they should run their economy policies, hence indirectly directing the social structure of the country. Such instrument was the on of the kind solution for west to keep their control power over the world. It was a brilliant idea at brilliant timing.

The Second instrument used in economy warfare is fiat international currency. The nation who her currencies is nominated at the sole single international trade currency will have the privilege not only control over the international trade, but literately able to enjoy free commodities and products from the rest of the world.

The third kind of instrument is financial instruments that has become greater in term of its complexity. The derivative and leverage market has the power to overnight tumble a nation economy. Economy pitfall during 1997, 2000 and 2008 were great example for what derivative market can do to the market. It is a time bomb that nurture economy perfect storm. As the concept of money and trade become more virtual and electronic, the efficiency for economy damage to spread are at the speed of light.

The fourth kind of instrument is debt. Debt was never a concept that well accepted until recent day. Debt was perceived as evil and bad during our grandfather time. But it was history. Today economy, debt was the main propulsion system that keep it run and growth. Banking system promote debt. People has to take debt in order for economy to growth. It a U-turn road. Houses, cars, educations, vacations and household expenses, are all feed by debt. It make human to become slave to pay back the debt. It was the ultimate weapon to control over billion of population.

For all instruments discussed above were just some of the example of how economy become a weaponary system in modern civilization. The reality of economy warfare cannot be undermined given the potential treat to our world stability. With collapse of one economy, military resolution will become inevitable. The good news is, it is possible to have a win win version economy environment. It is up to political leaders of great nations to face the reality, to decide, if not make move, to create the version of future that is good for everyone or otherwise.