What does "Economic Dissonance" mean?
PSI TECH INTERNATIONAL, INC.
Date: October 26, 2001
From: Joni Dourif - President
RE: Economic Dissonance in Terror Campaign
On the afternoon of September 11, PSI TECH employees began working on
the 911 Special Project. Our goal was to foresee and accurately predict what
was ahead in terms of more terrorist attacks in America. We perceived a
number of multi-pronged attack plans in motion. One that was consistently
popping up (unexpectedly) was economic dissonance. A month ago, we were
more focused on the urgency for pin pointing catastrophic attacks that could
cause immediate fatalities. However, as we continued collecting collaborating
data from our remote viewing team, the onslaught of attacks appear to be more
surreptitious and cunning in nature. The piece of data of economic dissonance
seemed to be overlooked by the attraction of more vociferous perils.
I have asked one of our remote viewers to research and expand upon the
idea of economic dissonance in order to offer up a more thorough
understanding of its definition, exertion, and its effects on your everyday life.
Here is a copy of that article:
America: the most powerful nation on earth, with a dominant force and far
reaching global economic clout. It sits between two oceans, bordered by allies,
and is supported by major world powers across the globe. So how could a
handful of individuals with limited military force cripple such an enormous
presence? By attacking it where it is most vulnerable, in its own belly, through
“Economic Dissonance" is the continual unrelieved industrial, financial, and
commercial tension that slowly tears apart the functioning fabric of a country. It
is a key strategy that has been used, and will continue to be used, by the
terrorists in their attack against the United States. President Bush stated, “The
terrorists want our economy to stop. It hasn’t.” This may be true, it has not
stopped. But in the span of just two months, the actions of a few individuals
have affected our far reaching economic base.
The immediate economic impact of the September 11th terrorist attack on the
World Trade Center is obvious. The World trade center was not only a symbol of
American economic power, but also housed the central computers for Wall
Street. Following the attack, the initial public stock offerings on Wall Street were
said to have plummeted 88% from the average of the first eight months of the
Other immediate effects were on the broadcast media industry. The attack is
estimated to have caused losses in the television industry alone, in the
neighborhood of $700 million dollars in lost advertising revenues. One of the
first venues that corporations cut when scaling back is advertising.
As the damage began to be assessed and claims began to roll in, insurance
companies began to suffer, with a current estimated range of $40 to $70 billions
dollars in losses.
Airlines suffered an immediate impact, as flights were stalled, canceled, and
layoffs began. Public fear dramatically reduced the consumer demand for travel.
Airline layoffs have reached 100,000, and Boeing has cut production by 50%.
With Americans staying close to home, the hospitality industry began to feel
immediate losses, as hotels, resorts, tourism, and restaurants everywhere
experienced increased cancellations and lack of business. The hospitality
industry remains unstable to this day. Another effect of airline industries
economic downfall is the decrease in the demand for oil due to grounded
Beyond the immediate impact, economic dissonance has snaked its into more
facets of our everyday life.
On October 21, at the Economic Leaders Declaration in Shanghai, China,
APEC declared that, "The terrorist attack on the US risks undermining some
industries as well as consumer and investor confidence." An October 3 poll
confirmed that fear about terrorism and the future economic condition is
influencing consumers more than their financial circumstances. Polls indicate
that Americans are putting off buying and avoiding investments with higher risks
due to these fears. The trickle down effect of lack of consumer confidence and
an uncertain stock market is far reaching. Auto makers, for example, are now
faced with either cutting production, or luring consumers with costly discounts.
As consumers spend less, the employment demand decreases and layoffs
increase. Recent announcements claim that the unemployment rate is now the
highest in 10 years. Due to a volatile stock market, State governments are now
facing mounting Medicaid payouts and pension funds, and are facing major
budget difficulty due to the increasing layoffs, which are raiding state tax
collection and increasing unemployment compensation claims. The theory of the
Bush Administration is that consumers are holding back mainly due to their
fears about these layoffs, and a recent Gallop poll indicated that 13% of
Americans believe they are either likely or fairly likely to lose their jobs in the
near future. As layoffs increase, consumer spending decreases even more than
initially, thus perpetuating more layoffs.
Another longer term economic problem will be the national insurance situation.
Economic dissonance due to the terrorist attacks will cause insurance cost
increases in 2002, according to Treasury Secretary Paul O'Neill. In an October
24 testimony before the Senate Banking Committee, O'Neill outlined the Bush
Administration s proposal at reducing the shock economically, caused by those
increased insurance costs and decreased insurance coverage. As O'Neill
explained, due to the fact that insurance companies were unable to calculate
prices of terrorism risk in the future, they have began to eliminate related
coverage from policies as those policies came up for renewal. Since most
contracts through insurance companies need to be renewed after December
31st, the effects won t be fully felt until 2002. O'Neill stated, The administration
believes that the economy is facing a temporary, but critical market problem in
the provision of terrorism risk insurance...leaving this problem unresolved
threatens our economic stability.
In the international economic arena, the United States will be affected as well.
US Federal Reserve Board Chairman Alan Greenspan stated that letting
terrorism discourage domestic and cross border activities, could reverse at least
part of the palpable gains achieved by postwar globalization. In a speech on
October 24 to the Institute for International Economics, he emphasized free
trade as a powerful force for prosperity, and said, “Fear of a terrorist act...has
the potential to induce disengagement from activities, both domestic and cross
border.” He again reiterated that Terrorism poses a challenge to the remarkable
record of globalization.
The web of our economy is fragile, far reaching, and interconnected.
Economic dissonance as a terrorist attack strategy has the capability to weaken
the filaments that connect our great nation and keep us strong. Already, the
terrorist attack on our postal system has had a negative economic impact as
fears of chemical or biological agents in our mail have caused panic in
Americans nationwide. Americans will be more likely to dump their junk mail and
unfamiliar solicitations into the trash, unopened, which will have an effect on the
mail order market as well. The impact on catalog mailings could potentially be in
the billions. Again, in the television industry, there is now a need to create new
bureaus abroad, and a need as well for new technology and a broader
coverage, which could potentially increase networks budgets 25% to 35% in the
next several years. The threat of terrorist attacks on our food supply has already
had an impact also. In a USDA press release on October 19, it was announced
that inspectors are on higher alert at ports of entry, and that by the end of the
fiscal year 2002, ports of entry will see personnel increases of nearly 40%, and
that the inspection dog teams will double. This could have an impact on food
costs, as the need for higher security in all areas of food processing becomes in
demand. Major public events will also be impacted by the terrorist strategy of
the economic dissonance. Great sporting events such as the Superbowl, or the
Olympics have become prime symbolic targets, and there will be a decrease in
attendance at these events as the terrorists subtle attack on our economy
through fear continues. Decrease attendance will again affect consumer
spending in the hospitality and tourism industries.
President Bush said that terrorism will not change American way of life. He
has stated that, "They won't succeed. This country is too strong to allow
terrorists to affect the lives of our citizens." Unfortunately, they have succeeded
in changing the American way of life, not only through acts of violence, but also
using a far more sinister and elaborate strategy. Economic dissonance now
affects every aspect of life in this country. And it is this conniving scheme that
we must recognize and take into account if we are to stay one step ahead of
-Article by Kimberly Snow
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