* Note: NoisyRoom is honored to post a portion of this article. We believe it is one of the most thorough pieces of research we have seen and the writing is superb. Read the beginning here, but make sure you click through to Flopping Aces and read it all. It is a must read.

By: MataHarley
Flopping Aces

In Sept, 2008, I penned the post, the US Economy: A Perfect Storm of Housing and Lending Events. This overview of how we managed to bring ourselves to the precarious cliff of a failed economy revealed it was not a single issue, but a combination of many events – including political pressure on lenders for home ownership, relaxing of GSE lending criteria, regulation/deregulation, and profit motivation by financial institutions – leading to an out of whack supply vs demand, driving up housing values to unsustainable and dangerous levels.

It never crossed my mind that financial terrorism could be another element to be factored in. So when the WA Times wrote of an unclassified Pentagon report by Kevin D. Freeman, my head perked up. (Read the Scribd version here.)

Since that time, I’ve tried to dissect what many here, and elsewhere, have dismissed as a report they consider simply a distraction from ill thought US fiscal policies and irresponsibility by both Congress and Wall Street alike, and fueled to a frenzy by irresponsible homeowners.

Be assured that the Freeman report does not dismiss irresponsibility for US fiscal policies and events. Rather, he frames his three Phrase hypothesis upon the premise that our self-induced fragile and unsustainable fiscal trajectory, combined with opaque global trading practices, was easily exploited for purposes of financial terrorism. And several out of the norm trading activities – such as an oil spike that wouldn’t traditionally happen, the bear runs at US financial institutions, and the disappearance of a hefty amount of money in the markets in a short time – were enough to raise suspicion.

It can be said that most conspiracy theories contain variations and glimmers of truth. So, to be as analytical as I can, without slinging political arrows, I offer you my thoughts on the first two of three Phases of the Freeman theory of Financial Terrorism as an element in the global 2008 economic crash.

Read the rest here – this is an incredible read…