He [Leon Panetta] also testified at the hearing on the defense budget. "The days of large growth, unlimited defense budgets are over. "Our challenge will be to design budgets that eliminate wasteful and duplicative spending while protecting those core elements that we absolutely need for our nation's defense." He later said "the next Pearl Harbor that we face could well be a cyber attack" and that "we are no longer in the cold war, more like the blizzard war." If confirmed, Mr. Panetta, will be the 23rd U.S. Defense Secretary. – CSpan

Dominant Social Theme: Relax, we are trying to DEFEND YOU. (No, we're not.)

Free-Market Analysis: CIA Director Leon Panetta said in a recent hearing that the US may soon face a cyber-attack that would be the equivalent of Pearl Harbor. (See excerpt above.) Pearl Harbor was a huge (possibly false flag) event that convulsed the US and provided a pretext for the US to go to war. We've written several recent articles now suggesting that Western powers-that-be have in mind expanding the wars in Eurasia and Africa.

When the power elite's faux-economies collapse, as they always do, the solution is usually a war of some sort. It is one of the biggest dominant social themes of all. War is the ultimate fear-based promotion – the idea that the state (which is no good at anything else) – can protect and defend citizens from its "enemies." Usually, when one closely examines the situation, the enemies have been made up, at least initially. The Internet has been making war harder to promote.

War runs hand-in-hand with economics. When the economy flatlines, modern warfare is often the answer of those that seek to continue their control of society. Fiat money, the current manifestation of Western economies, is a very effective tool for control and consolidation. But like other forms of price-fixing, it doesn't work over the long term. Western power elites, based out of the City of London, know this. There are over 100 central banks around the world that are coordinated by the secretive BIS and all of them can basically print money at will. Even when there is supposedly public oversight of these banks, there is no oversight.

The serial ruin the BIS inflicts on the world is intended to increase the pressure for centralization – for true world government run by Western elites. This is not conjecture. It is not conspiracy theory. The UN exists; so do the BIS, the World Bank and the IMF. Also, now, the International Criminal Court. All are basically post-World War II Western inventions. Yet those who point that a world government is being erected bit by bit are labeled conspiracy theorists. The conspiracy lies with the power elite that is moving ahead with this unaccountable and dangerous program.

The rush to world government has speeded up in the 2000s. NATO has been given a new mandate as a kind of "army of the world" via the UN resolution back in 2005 that did away with the Peace of Westphalia and substituted "Responsibility to Protect" – also known as R2P.

The Peace of Westphalia, created hundreds of years ago, recognized national borders. R2P DEMANDS that nation-states as a group interfere with nations that are "threatening" their citizens. Of course, the Anglo-American power elites run the UN through the Security Council. Now these elites can claim that a particular country (one they want to undermine) is threatening citizens and turn a NATO coalition of the willing on them. This is what's happening in Libya, Syria, etc.

Throughout the world, over the past six months, the Anglo-American elites (in league with France) have begun to generate numerous wars and conflicts – up to 600 or so "hot spots" worldwide. This is apparently a deliberate policy of destabilization that is being supported and even initiated by CIA-trained youth groups such as the AYM.

The West's elites must understand that fiat-money inflation has plunged the world into a rolling Depression. As we have pointed out many times, China is probably next on the list. There is no real escape from this Depression – not in the short term, and thus the elites are apparently faced with a problem: They must sustain the system as it is until they can make the transition to true world government.

Whenever Western elites have faced problems before (in the past 300 years anyway) they have apparently engineered wars. The plan evidently and obviously was to do so again in the 21st century. But the Internet has made this kind of manipulation much more difficult. Like the Gutenberg Press before it, the Internet is causing a massive upheaval around the world that the elites are having difficulty controlling. We have labeled this the Internet Reformation.

The Western power elites have three main thrusts in our humble view to pursue. 1. They have an evident urgent need to continue their lunge toward world government. 2. They have to create war and chaos to do so. (Out of chaos, order.) 3. And finally, they have to ameliorate the damage that is being done to their plans by the Internet.

An Internet false flag within this context would be a kind of masterstroke. It is certainly not beyond rational discussion. We can see Leon Panetta (above) laying the groundwork for such an event. The rebuttal would be that he is merely spelling out dangers that the US faces. But when someone as powerful and important as Panetta speaks of such things, the suspicion can legitimately arise that these activities are actively being planned. An article that appeared over the weekend at ZeroHedge.com aptly summarized the many false flags that the US in particular has been involved with in the past decades.

The article is entitled, High-Level American Officials Admit that the United States Uses False Flag Terror … And Warn of Future Attacks. It was submitted by "George Washington" who is apparently a regular submitter. The article appears on his own "Washington's Blog" as well.

It points out, to begin with, that "FBI agents and CIA intelligence officials, constitutional law expert professor Jonathan Turley, Time Magazine, Keith Olbermann and the Washington Post have all said that U.S. government officials 'were trying to create an atmosphere of fear in which the American people would give them more power.'" Apparently, former Secretary of Homeland Security – Tom Ridge – admitted that he was pushed to hike terror alerts to help Bush win reelection.

Washington then points out that a former National Security Adviser told the Senate that the war on terror is "a mythical historical narrative." It is being purveyed (as we have often pointed out) deliberately to increase elite control and demonize elite enemies such as Libya's Colonel Muammar Gaddafi. "Fear makes people stupid and easy to manipulate and control." Washington adds, "Countries need to lie about their enemies in order to demonize them sufficiently so that the people will support the war."

For this reason, intelligence agencies (apparently invented by the West's banking families long ago for their personal use) are constantly identifying threats that later on prove illusory. Washington reminds us that, "the U.S. Navy's own historians now say that the sinking of the USS Maine — the justification for America's entry into the Spanish-American War — was probably caused by an internal explosion of coal, rather than an attack by the Spanish … It is also now well-accepted that the Gulf of Tonkin Incident which led to the Vietnam war was a fiction."

Washington doesn't mention it but one reason Panetta's reference to Pearl Harbor is worrisome is because there is a good amount of evidence that Pearl Harbor was a manipulated episode by FDR to bring the US into World War II. In the 1990s, at least one prominent think tank speculated that what was needed to reestablish certain elements of national pride and discipline in America was a "new Pearl Harbor." These same people went on to become prominent (many of them) in the George W. Bush administration, which gave rise to the ongoing suspicions that 9/11 itself might be a false flag, one designed to reintroduce more authoritarianism into American culture while simultaneously involving it in wars.

These same suspicions apply to the first Gulf War, as Washington points out. At least two "big lies" helped to generate the 1991 Gulf War: the first was the allegation that the Iraqis were murdering Kuwaiti babies and the second was that 250,000 Iraqi troops were massed on the border with Saudi Arabia. Washington doesn't mention it, but there are also allegations that Saddam Hussein believed he was in a sense given permission by the West to pursue his Kuwait invasion due to what may have been a purposefully nebulous response by the US State Dept. regarding his plans.

Washington updates the old Iraq war with new proposed plans. Former chairman of the Joint Chiefs of Staff General Hugh Shelton recently told Jon Stewart that a Clinton cabinet member proposed letting Saddam kill an American pilot as a pretext for war in Iraq. As reported by the New York Times and other newspapers, he continues, "George W. Bush also suggested to Tony Blair that a U.S. plane be painted in United Nations colors so that – if Saddam shot it down – it would create a casus belli."

The US is a prime exponent of terrorism, Washington writes. "In '78-79 the Senate was trying to pass a law against international terrorism – in every version they produced, the lawyers said the US would be in violation." Former FBI station chief Ted Gundersen has been outspoken about False Flag terror attacks, saying that most of them are committed by the CIA and FBI.

The CIA, Washington writes, admits that it hired Iranians in the 1950s to pose as Communists and stage bombings in Iran in order to turn the country against its democratically-elected prime minister. And then, of course, there is Operation Gladio, which created a secret "stay behind" army in Europe. "The former Italian Prime Minister, an Italian judge, and the former head of Italian counterintelligence admit that NATO, with the help of the Pentagon and CIA, carried out terror bombings in Italy and other European countries in the 1950s and blamed the communists, in order to rally people's support for their governments in Europe in their fight against communism."

We could go on with this list, and Washington does. It is grim reading, involving the FBI, CIA and, generally, the top level of the American government in false-flag efforts and subsequent coverups. Washington reminds us that those who forget history – or do not recognize – are likely doomed to repeat it.

He also points out that recently a former National Security Adviser informed the Senate that a false flag act might be blamed on Iran to declare war. And this, too: "A retired 27-year CIA analyst who prepared and presented Presidential Daily Briefs and served as a high-level analyst for several presidents stated that if there was another major attack in the U.S., it would lead to martial law … The former CIA analyst would not put it past the government to 'play fast and loose' with terror alerts and warnings and even events themselves in order to rally people behind the flag. We've written about this sort of false flag numerous times, most recently here: Does the Elite Need a False Flag?

We have noticed in the news a good deal of commentary about a cyber attack on the International Monetary Fund. A feedbacker pointed out yesterday that this increasingly publicized attack plus Panetta's disturbing remarks seem to be laying the groundwork for a false flag of this sort. Also, the Pentagon recently announced that a cyber-attack on government facilities would be considered an Act of War.

None of the above is in any sense paranoid or irresponsible to report. One needs not be involved in "conspiracy theory" to purvey the idea that Washington and London are contemplating further false flags to further consolidate power in the face of pan-Western anger over the current, dysfunctional central banking economy and to further consolidate world rule.

The Internet has revealed the plans of the Western elites, stripped away the secrecy and showed many what is really going on – a perhaps 300-year-old conspiracy to consolidate world power behind the backs of billions who are simply struggling every day to make a living and find enough food to eat. Yes, unfortunately, the free-market has been subverted in every way while billions and trillions – enough to feed the world literally for centuries (or at least to set up the agricultural infrastructure) – is wasted on wars and weapons systems.

Because of the Pentagon's announcement, a major cyber attack can be the cause of a war. If a false flag cyber attack was to be created and, say, attributed to Iran, then the US President might be under an affirmative obligation to declare war against Iran. No doubt, US powers-that-be could also justify a significant takeover of the American Internet and further reduce American civil rights. A cyber false flag might therefore promote many of the interests of the Anglosphere power elite.

These sorts of things have happened before. It is neither incendiary nor unpatriotic to recite them. American freedoms (what's left of them) are under attack by 16 separate US spy agencies and numerous other aggressive actions taken by Washington DC and London. Western elites are evidently and obviously at war with their own citizens. Unfortunately, there is no reason, to think peace will break out anytime soon.