Cyber Attack
Page 6
“Julia is spot on,” added Gottlieb. “I have seen the proposed currency notes issued by the central banks of the four nations. They are very patriotic, featuring symbols and leaders of their historic past.”
“What will be the effect on the United States economy?” asked Sciacca.
“Obligations to official creditors like the IMF, the European Central Bank and the other European governments account for the vast majority of the three trillion dollars of indebtedness,” replied Gottlieb. “These global financiers will bear the brunt of the foreign losses resulting from the default. The foreign bank exposure, including those of the United States, totals around eighty billion dollars, which is widely dispersed around the world. The direct effects on these banks should be manageable. However, this action will plunge the former Eurozone into recession. Europe is America’s largest trading partner and its demise will probably have an immediate impact on our floundering economy.”
Instinctively, Julia looked at her watch as the opening of the stock market approached. “Markets don’t like volatility,” said Julia. “How bad can it get?”
“The markets in France are our best indicator,” replied Gottlieb. “Like most cash and derivative markets, mitigation strategies are in place to prevent mass hysteria from collapsing an entire stock market. History has shown that crashes are driven by panic as much as by underlying economic factors. They are truly social phenomena where certain external economic events combine with crowd behavior, creating panic selling.”
It was human nature to follow crowd behavior. Julia had observed this at sporting events. During a football game, a fan might suddenly turn around and look at the sky. Suddenly, fifty thousand individuals began to act as a single unit, almost a single brain, focused intently on what was happening off the field. Sociologists claimed crowd behavior was partly responsible for the market crash of 1929.
“What happened in France?” asked Sciacca.
“The French equivalent of our Dow Jones Industrial Average of thirty benchmark stocks is known as the CAC40,” replied Gottlieb. “Their mitigation strategy is fairly complex, but transactions are suspended for one hour when certain levels are met and the markets close completely when twenty-five percent of the value of the CAC40 has been reached.”
“What happened after the markets in France opened?” asked Sciacca.
“After a series of suspensions of trading and corresponding resumptions, the markets closed. The CAC40 bottomed out at twenty-five percent of value within three hours,” replied Gottlieb.
The room became deathly silent as the magnitude of the crash in French equities soaked in. More than one person in the room checked their watches.
“Do our markets have similar mitigation strategies?” asked Sciacca.
“We do,” replied Gottlieb. “There are three thresholds, each of which represents different levels of decline in terms of points in the Dow. These are computed at the beginning of each calendar quarter to establish a point value based upon the market’s present value. They are known as circuit breakers.”
“I remember this,” said Sciacca. “During the market crash of ’08, trading was halted after drops in ten percent increments.”
“That’s correct, Joe,” said Gottlieb. “The SEC and the New York Stock Exchange have since amended Rule 80, which deals with the benchmark index to seven percent, thirteen percent and twenty percent. At twenty percent, trading will be halted.”
“What are we talking about here?” asked Sciacca.
“If trading is halted, indicating a twenty percent loss, the market capitalization of the United States will have decreased by nearly seven trillion dollars,” replied Gottlieb. “That’s half of the entire Gross Domestic Product of the Eurozone. Our investors have the most to lose by this.”
Julia checked her watch again. It was 9:30. This was going to be a newsworthy day.
Chapter 14
May 17, 2016
73 Tremont
Boston, Massachusetts
“You know, I just realized something,” said Donald as he rode up the elevator with Steven and Sarge, while ignoring the two bulky security personnel standing to their rear.
“What’s that, DQ?” asked Steven.
“In all the years we’ve known each other, we have never been here together,” replied Donald.
Steven nodded and Sarge thought for a moment.
“You’re right, Donald, and other than recent events, I have no clue as to why we’re here today,” added Sarge.
Yesterday’s news of the Eurozone collapse was dominating the major networks, not just cable news. When it was announced the European banks would be closed indefinitely, panic turned to anger throughout Europe. Rioters opened the doors of banks on their own, and cell phone videos began to show the destruction. By day’s end, nearly one hundred bank locations across Europe were destroyed by outraged citizens. As financial markets opened on day two, stocks crashed as investors sought the safe-haven investments of precious metals.
The elevator doors opened and Sarge led his companions to the reception desk. Despite attempting to exchange pleasantries with the ladies manning their posts, Sarge noticed a constant darting of the eyes in Steven’s direction. Animal magnetism, mesmerism and hypnosis were all at work when Steven encountered beautiful women.
“Gentlemen, Mr. Morgan requests you wait for him in the studio,” said a stunning blonde who could just as easily peel off your toenails as curl your toes. The boys dutifully followed her into the media room of Morgan’s offices, which comprised the entire top floor of the 73 Tremont building. Originally built in 1829 as the Tremont Hotel, the neoclassical building was known for its innovations of the time such as indoor plumbing, locking guest rooms and free toiletries. Some of the Tremont Hotel’s early guests included Davy Crockett and Charles Dickens, who would marvel at the modern alterations incorporated into Morgan’s studio. Decorative shelving and built-in television monitors gave the room a distinctive library feel. The titles included the works of Dickens, Hawthorne and Faulkner. You could choose a classic book or a classic movie, all in one place.
“Thank you, Danielle,” said Morgan as he entered the room with the ever-present Lowe. “Gentlemen, thank you for being prompt. We have a number of issues to address.” Morgan was getting right down to business.
Sarge nudged Steven to pay attention to Morgan and not the young lady’s departure.
“Malcolm, bring up the video on Prescott Peninsula,” said Morgan.
Lowe interacted with a tablet computer and two screens came to life. One showed a continuous video of the entire Quabbin Reservoir by helicopter and the monitor showed an overall map of the area. Morgan approached the screen. “As you know, the Quabbin Reservoir is the largest inland body of water in the state. This area is known as the Prescott Peninsula. A charitable trust has been formed to take ownership of the area outlined here.” Morgan pointed along a boundary surrounding the entire area, which included the former town of Prescott and the entire peninsula on which it sits.
“Mr. Quinn, Malcolm will provide you a packet of materials on the acquisition together with the legal documents. For public purposes, the charitable trust is owned anonymously and has been established for families fleeing domestic abuse. For our purposes, I want you gentlemen to plan a private community to be used in the event a catastrophic occurrence requires the city to be abandoned.”
“You want a bug-out location,” said Donald.
Sarge and Steven couldn’t conceal their looks of curiosity. Morgan always had a plan, which was based upon an event foreseeable only to him. His methods never came into question.
“That’s correct, Donald,” said Morgan.
“What’s that dome-shaped building?” asked Steven.
“This is the former Five College Radio Observatory built in 1969 by the University of Massachusetts, Amherst, Hampshire, Mount Holyhoke and Smith colleges,” replied Lowe. “Its purpose was the training of astronomy students and to conduct research.
At the time, it contained state-of-the-art technology.”
“Next screen, please, Malcolm,” instructed Morgan. The next screen was produced, showing the exact same aerial vantage point, but the domed building was no longer there. “In 2011, the observatory was decommissioned, requiring the government removal of the building and astronomy equipment. However, there is something else about this facility that cannot be seen by these aerial photographs. Run the next sequence, Malcolm.”
“Looks like a giant golf ball,” said Steven. A series of images flashed across the screen, revealing the before and after images of the facility. The final image revealed a small lake and a large grassy area devoid of trees.
“Most ground-based observatories consist of an optical telescope like the one shown in these images, surrounded by a dome-like structure—Steven’s giant golf ball,” said Lowe. “As you can see in these images, the structure and the telescopic apparatus were removed. What you cannot see is what is underground.”
“At the time of the design and construction of the observatory, the Cuban Missile Crisis was still very much on people’s minds,” said Morgan. “Senator Ted Kennedy insisted the facility include an underground, nuclear-proof shelter. In addition, following the successful testing of an electromagnetic pulse weapon, the good senator required the shelter be protected from an EMP as well. Despite a series of nuclear disarmament treaties being executed in ’69, the Quabbin Observatory was designed as a state-of-the-art nuclear fallout shelter.”
“In 1962, the government was testing a number of EMP weapons,” said Donald. “One of the tests known as Starfish Prime exploded an EMP thirty miles above the Earth about thirteen hundred miles west of Honolulu. Electronics from Hawaii to New Zealand were damaged by the electromagnetic pulse.”
“Is the shelter still present?” asked Sarge.
“It is,” replied Morgan. “When the facility was decommissioned and dismantled, the contractor hired for the demolition worked for one of my associates. He removed the visible portions of the facility but left the subterranean compound intact.”
“What is still underground?” asked Sarge.
“Malcolm, if you please,” said Morgan. A series of images crossed the screen, which included blueprint drawings and images of the interior, including bunk rooms and storage lockers. “There is roughly five thousand square feet in the bunker, allowing for thirty occupants and several years of provisions.”
“Wow, this is incredible,” said Donald. “This is a prepper’s paradise.”
“I’m glad you feel this way, Mr. Quinn, because you will be busy over the next few months,” said Morgan. “First, you will orchestrate a charade for the media. I want this entire project to have the appearance of a home for wayward families. My daughter will be conducting a high-profile political event there on June 7th, primary day. Afterwards, you will proceed quickly to ready the facility. My thoughts for the construction and use are detailed in the packet of materials Malcolm has provided you.”
“When is the facility to be ready?” asked Donald.
“End of August,” Morgan replied flatly.
Sarge sat back in his chair and once again glanced in the direction of Steven. Something’s afoot.
“Mr. Quinn, of utmost importance is secrecy. Use all of the tools available to insure your activities go undetected. Am I clear?”
“Yes, sir,” said Donald.
“Now, let’s discuss our hosting of the Bilderberg conference next month,” said Morgan, addressing Steven and Sarge. “I want the two of you to coordinate security and logistics for The Liberty Hotel and our guests. There will be a few guests who will require special attention. Further, there will be a couple of guests who will be unable to attend.” Morgan allowed the words to soak in. Looks like Steven will be going out of town for a few days.
“Steven, expect a call from your employer within twenty-four hours. Henry, I need you to coordinate the hotel logistics with Aegis in his absence. I will rely heavily upon you both during the conference and be aware that plans can change on a moment’s notice. We will meet here weekly until the conference. Do any of you have questions?”
“No, sir,” replied Sarge on behalf of the group.
“There is one more thing,” said Morgan. “Abigail is doing very well in the polls, and barring unforeseen circumstances, she should be reelected in November. Henry, have you discussed the campaign with my daughter?” He’s snooping.
“Only briefly last month, sir,” replied Sarge. “We had an impromptu fund-raiser on her behalf at 100 Beacon the day of the Boston Marathon. She also indicated the campaign was on track.”
“There are occasions when my political viewpoints conflict with Abigail’s,” said Morgan. “I do not publicly state my political positions, but this doesn’t mean I am devoid of opinion. I have established a nonprofit organization for the purposes of a political think tank. I want you to assemble a team, produce the necessary policy statements, coordinate a research arm and develop the necessary means of disseminating information.”
Sarge was caught off guard by this request. Mr. Morgan never alluded to a project of this type and it was completely out of character for him. Further, Sarge could talk about politics and its impact on world affairs. But becoming involved in the process was never on his career-advancement radar.
“Sir, naturally I am flattered you chose me for this project, but aren’t there more politically inclined people at your disposal?” asked Sarge.
Morgan’s reaction was annoyance.
Fatal Error. Don’t question the boss.
“Henry, I give every decision a thorough analysis before I implement it,” said Morgan. “I’ve read your book and your flawless analysis of America’s standing in the world comports with mine. Because of my position, I am unable to advance my views publicly. You, on the other hand, have become a recognized expert on the importance of America’s sovereignty. There is no better spokesman for the preservation of this concept. Further, this will advance your stature as a defender of the Constitution.”
Sarge exchanged glances with Steven and Donald. He has a plan for me. This is just the beginning. “Thank you for the confidence you have placed in me,” said Sarge. “I look forward to the challenge and appreciate the opportunity to raise awareness of the importance of protecting America from global intercession.”
“Gentlemen, we are entering troubling times for America,” said Morgan. “The key to the survival of our nation will depend upon the outcome of certain events in the next few months. I believe in preparation for all contingencies and I expect perfection in the implementation of my directives. Are we clear?”
“Yes, sir,” was the response, in unison.
Chapter 15
May 20, 2016
Harvard Kennedy School
Cambridge, Massachusetts
Sarge was in his eleventh year as a professor for the prestigious Harvard Kennedy School. As a teen, he enjoyed reading and research. Every topic caught his attention, but his family’s political roots put him on this career path. His father, now deceased, was the former governor of Massachusetts and the Sargent lineage was filled with Revolutionary War heroes.
Unlike many of his friends in college, Sarge was not idealistic. He was not interested in political activism—neither party seemed to get it right. His dedication to studies and hunger for knowledge led him to the top of his class throughout his years in college, culminating with a doctorate in political economy and government from Harvard. He was honored when he received the offer to teach at his alma mater.
As a junior, untenured professor, Sarge focused on building a record through research papers and articles written for relevant journals. Journals were nothing more than the primary product of professorial research. He wrote between four to six articles a year with the help of his research assistants. Sarge supplemented his journal submissions with travel. Being single, he was not constrained by family commitments. He traveled throughout the world, giving lectures and workshop
presentations. Although it took time to develop a concise, entertaining presentation, he eventually became adept at public speaking. He became known internationally and rapidly built a respected reputation abroad and amongst his peers at Harvard.
When a professor was offered tenure, it was an up or down decision. If you accepted the offer, you had a job for life. If you received the offer and turned it down, you needed to look for another job because you would soon be fired. Upper-crust universities didn’t like rejection from their faculty. Harvard’s tenure process was rigorous and invasive. Twenty or more unsolicited letters were sent to senior members of your community. There were background checks, interviews of associates and in-depth reviews of your lectures. Sarge’s bona fides were never in question. His lineage dating back to the Revolutionary War helped. Being John Morgan’s godson sealed his future as a tenured professor at Harvard.
Once tenured, Sarge was able to pursue his craft without fear of dismissal. Many professors used this Teflon status as an opportunity to advance their political agendas without fear of reprisal. Sarge simply enjoyed the job security and the ability to teach what he was passionate about—global governance.
After receiving his offer of tenure, Sarge had the time, and staff, to write a full-length book on the topic of global governance. Sarge’s best-selling book, Choose Freedom or Capitulation: America’s Sovereignty Crisis, became a regular topic on the presidential campaign trail. In the book, as well as lectures, Sarge warned against the overreach of globalists. He frequently opined that the Founding Fathers anticipated a power grab by a strong federal government, so autonomy of state governments became a central premise of the Constitution.