Skip to main content
Top

2018 | Book

Economics and Modern Warfare

The Invisible Fist of the Market

insite
SEARCH

About this book

This book demonstrates how economic tools have been used throughout history to accomplish goals of military conflict, how they can be used more effectively than traditional means of warfare in the modern era, and how we can derive a better understanding of economic strategy applicable not just to the military but also to market competition. This new edition includes a thorough updating of chapters on advances in our understanding of economic warfare and more recent examples, such as ISIS’s reliance on obtaining control over oil production facilities, North Korea’s nuclear program, and China’s emphasis on scientific research and technological innovation. This edition also features an entirely new chapter on the commercialization of the conflict over the region of Kashmir.

Table of Contents

Frontmatter
Chapter 1. A Critique on Current Methods
Abstract
From trade sanctions, to currency wars, to full embargoes, the economic methods most commonly utilized in global conflict today are just as self-destructive as they are ineffective at accomplishing the goal of winning in combat. This chapter details the problems with these methods.
Michael Taillard

Supply Manipulation

Frontmatter
Chapter 2. Altering Distribution of Supplies
Abstract
The combat readiness of a force is arguable dependent on the supplies available to them more than any other factor, and some of the most ancient methods of winning battles has been to alter the availability of those supplies. This chapter explores how this has been accomplished through a variety of methods, and sets the foundations for the influence that altering the availability of specific types of supplies will cause the opposition to react in predictable ways.
Michael Taillard
Chapter 3. Altering Distribution of Capital Assets
Abstract
Combat is expensive and requires forces to acquire large volumes of capital to fund their war efforts. There are a variety of methods by which this can be accomplished, and exponentially more methods by which those methods can be manipulated for strategic purposes. This chapter explores the role of capital assets in combat and demonstrates how changing the amount of capital available to different parties of a combat theater can create a fundamental shift in the relative ability and willingness of each party to fight.
Michael Taillard
Chapter 4. Altering Distribution of Human Assets
Abstract
Without people, there are no conflicts to be fought. Unless people are able and willing to fight to defend their cause then the conflict will have come to an end, or never started at all. The skill sets that people have will contribute to the war effort in different ways, so altering the volume of people willing to assist in the war effort must not be the only consideration, as the strategic advantage held by each side in a conflict will depend on the specific skills and knowledge available.
Michael Taillard
Chapter 5. Physical Confrontation
Abstract
When the opposition attempts a direct physical confrontation in combat, how should one respond? Based on the resources available to each side in the conflict, what will the outcome be? Most importantly, how can you force the opposition to consume all their resources in the pursuit of a battle that never occurs so that you are able to easily overcome their attacks? This chapter answers all these questions and more.
Michael Taillard
Chapter 6. Systempunkt Targets
Abstract
In any integrated system, there will be a point that brings the entire system to a halt when disrupted—or at least a point which has a disproportionately large impact. Bridges have always been a popular target in accomplishing such things, but increasingly things like energy grids and computer systems are having a much greater impact, going as far as to create cascading effects that shut down the power to vast percentages of an entire nation simply by targeting a single power plant. This chapter shows how.
Michael Taillard
Chapter 7. Limitations and Failures of Supply Manipulation
Abstract
There are ways to adapt or even counteract when the opposition attempts to manipulate the availability of supplies in a combat theater, so no strategies that emphasize exclusively on these methods will be foolproof. This chapter explains those limitations and hints at how methods described later in the book resolve some of those problems.
Michael Taillard
Chapter 8. Suggestions for Future Research
Abstract
There are always more questions, things to be improved upon, and new ideas to explore. This chapter takes the methods described in Part I of the book and uses their logical progression to make recommendations for areas of research people in the future might be interested in considering.
Michael Taillard

Trade Manipulation

Frontmatter
Chapter 9. Preliminary Concept: Terms of Trade
Abstract
This chapter isn’t so much about strategy as it is about trade theory, but it includes descriptions of basic economic principles which must be understood as a prerequisite for the remainder of the book. It does place these principles within the context of strategy, but it does not provide a look into any strategic methods itself.
Michael Taillard
Chapter 10. Preclusive Purchasing
Abstract
Acquiring resources before the opposition has an opportunity, particularly when those resources are very rare or play some crucial role, is a fantastic way to prevent them from functioning properly on the battlefield. Even if such resources cannot be kept out of the hands of the opposition entirely, acquiring supplies early and in large enough quantities that the price for what remains is comparatively higher forces the opposition to consume more capital than necessary, putting them at a strategic disadvantage. This chapter explains it all.
Michael Taillard
Chapter 11. Resource Appropriation
Abstract
It has been known since the earliest records of warfare that taking and using the resources of the opposition when they are able to be taken is an easier and more valuable way to sustain troops and increase combat readiness than attempting to ship resources long distances abroad. That includes not just resources, either, but also capital and, when they are willing, even accepting the help of people. This chapter briefly describes the history of how this tactic has been utilized and changed over time.
Michael Taillard
Chapter 12. Supply Exploitations
Abstract
Rather than simply altering the availability of supplies as described in Chapter 2, this chapter describes how to alter the nature of supplies, take advantage of the responses that the opposition will have to alterations in their supply chain, infiltrate the opposition through their supplies, or even drain their capital by controlling the supply chain directly.
Michael Taillard
Chapter 13. Tactical Hiring
Abstract
People don’t just join a side and function effectively without considering the things that drive them. Issues of motivation and morale are key factors not only attracting people but also in helping those people fulfill their maximum potential. Different personalities of people tend to be motivated by different things, too, so staying tuned-into the things which make people happy is vital to attracting people with the skills sets you’re looking for.
Michael Taillard
Chapter 14. Tactical Pricing
Abstract
The amount of capital used to acquire resources is a critical determinant of how long the opposition can sustain their war effort and their strength at any given point in time over the course of a conflict. By strategically altering pricing, whether in the most direct sense or by other means of causing a drain on capital in the pursuit of resources, it becomes possible to directly alter the ability of the opposition to continue. This chapter gives several examples.
Michael Taillard
Chapter 15. Trade Agreements
Abstract
The “vendors” and “customers” with which a combat force partners is every bit as important as the allies they make. From supply distribution to recruitment partnerships, for centuries military forces have formed bonds with private, independent organizations, though these bonds have been largely ignored compared to formal alliances between military forces. This chapter illustrates their importance, citing several examples.
Michael Taillard
Chapter 16. Currency Manipulation
Abstract
The type of currency you have available to you, the value of that currency, the volume available, and even whether or not you actually have a valid currency recognized and accepted as unit of trade all play a very significant role in the regional and local combat strength. These factors not only alter how many resources can be acquired using a particular type of currency, but whether or not a particular currency can be used at all. This chapter is a bit more challenging, but illustrates just how vital currency and capital are, and how they can be manipulated using methods similar to that of monetary policy.
Michael Taillard
Chapter 17. Counterfeiting
Abstract
Building off of Chapter 16, this chapter describes how a currency can be completely devalued, causing the very legitimacy and sovereignty of a nation to be thrown into question. Even for those nations whose currency is robust, this chapter describes how its value can be decreased and how to increase one’s own availability of capital without actually acquiring anything of actual value.
Michael Taillard
Chapter 18. Limitations and Failures of Trade Manipulation
Abstract
Time is the biggest challenge to the methods described in Part II of this book. These methods become less effective over time as markets correct themselves, so using the available strategic window that is created as soon as possible by incorporating other strategies from Part I or Part III is critical. This chapter explains why.
Michael Taillard
Chapter 19. Suggestions for Future Research
Abstract
There are always more questions, things to be improved upon, and new ideas to explore. This chapter takes the methods described in Part II of the book and uses their logical progression to make recommendations for areas of research people in the future might be interested in considering.
Michael Taillard

Market Manipulation

Frontmatter
Chapter 20. Economic Intelligence
Abstract
Every single thing we do—every decision we make—leaves an economic footprint. Every penny you spend and every grain of rice you eat leave bits of data that can be interpreted to identify your activities and even predict your future plans. How did the price of black market diamonds help identify undercover Nazi vessels? Why have banks become crucial sources of information in the fight against terrorists? This chapter reveals all.
Michael Taillard
Chapter 21. Labor Exploitations
Abstract
Labor, whether directly for the military or that which supports the nation, is the foundation upon which all other things are built. This chapter describes how labor can be disrupted or stopped entirely and provides several infamous examples of strategic labor disruptions that shaped the course of conflict throughout history.
Michael Taillard
Chapter 22. Expropriating Peoples
Abstract
Conflict results when people have different, incompatible, and irreconcilable views about the way things should be. It should come as no surprise, then, that people with dramatically different worldviews are more likely to create conflict with each other than people who agree on both the goal and the methods by which to achieve that goal. People naturally share ideas and cultures when they come into contact with each other, and there are specific methods by which societies evolve. By taking advantage of these and accelerating the processes, minds can be changed so that the views people are altered to be more alike, thereby eliminating the desire to go into conflict at all.
Michael Taillard
Chapter 23. Equity and Debt Engineering
Abstract
Taking ownership or control over strategically important businesses, industries, supply chains, or other 3rd party organizations offers a wealth of opportunity to control the resources and capital available to friend and foe, including both the quantity and the quality of those resources.
Michael Taillard
Chapter 24. Equilibrium Redirection
Abstract
The very nature of a conflict breaking-out results in a significant shift in the volume and types of resources being consumed, their prices, and the availability for consumers under normal conditions. Such changes can be utilized to one’s own benefit, and they can even be artificially created to alter the flow of value in trade
Michael Taillard
Chapter 25. Decision Management Modeling
Abstract
When faced with multiple alternate options of how to act or respond to a situation, it can be difficult to determine which is best. This chapter describes how to estimate the value of success, the cost of failure, and the probability of success and use these things to calculate your best options, all while working to keep your actions guided back toward the singular goal of winning the conflict.
Michael Taillard
Chapter 26. Resource-Based View of Conflict
Abstract
Each side of a conflict is nothing more than a collection of people and resources, all being used to accomplish a single goal. The decisions that each side makes, and the very progression of the war itself, are all the result of the relative types and volumes of resources available and how they are utilized. There are very robust equations that predict the progression of conflict, and by applying the methods described in this book to control the manner in which the opposition utilizes their resources, wars can be won without every actually fighting. In fact, wars can be prevented before opposition forces even have a chance to form. This chapter is the culmination of all things in this book.
Michael Taillard
Chapter 27. Profits of the Game
Abstract
Utilizing the 3-nation conflict over Kashmir as an ongoing example, this chapter explores the role of risk and reward in achieving Nash Equilibrium in game theory. The only problem is that this is no ordinary game, as a unique form of for-profit combatant has formed that seeks to ensure that the playing field in this game remains destabilized to keep the nations fighting.
Michael Taillard
Chapter 28. Limitations and Problems with Market Manipulation
Abstract
The majority of the methods listed in this chapter describe military intelligence and the methods by which it can be decided which strategies to utilize, but they offer little in the way of direct influence, themselves. Part III is knowing what to do without being able to do it, whereas Parts I and II provide the tools to accomplish what the methods in Part III tell us must be done. Together, each of the 3 parts of this book complements each other to make up for limitations in the others.
Michael Taillard
Chapter 29. Suggestions for Future Research
Abstract
There are always more questions, things to be improved upon, and new ideas to explore. This chapter takes the methods described in Part III of the book and uses their logical progression to make recommendations for areas of research people in the future might be interested in considering.
Michael Taillard
Backmatter
Metadata
Title
Economics and Modern Warfare
Author
Ph.D. Michael Taillard
Copyright Year
2018
Electronic ISBN
978-3-319-92693-3
Print ISBN
978-3-319-92692-6
DOI
https://doi.org/10.1007/978-3-319-92693-3

Premium Partner