| Spirit Of Truth | Stock Market Update | Unreported Truth |
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"The harvest in the Mother of Battles has succeeded...
the greater harvest and its yield
will be in the time to come..."
(comment by Saddam Hussein following the Gulf War)
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"The Arab countries should be asking themselves,
'Who will fire the 40th missile against Israel?'"
-Saddam Hussein
(From a speech he gave on the fourth anniversary
of the start of the Gulf War.)
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Here we are more than six-and-a-half years later, it's the infamous "black" month of October and the Grand Supercycle crash is apparently upon us. Last week the DJIA reversed from 8000 and on Monday stock prices literally crashed, cutting a record 550 points off the Dow in a single day (it was a kind of "Black Monday" as predicted in my October 26th article, "The Great Crash" ). Since Monday's debacle, a sucker's rally has lifted the DJIA to retest critical resistance at the 7600 mark. Now the market looks poised for an all-out collapse.
A parallel of what has recently taken place in the stock market occurred in 1990. On July 16th and 17th of 1990, the DJIA closed at a then record high of 2999.75, i.e., the psychologically important 3000 mark, and then sharply reversed course. Stock prices dropped a quick five percent and then rebounded briefly until August 2nd, 1990, when Iraq invaded Kuwait. A Persian Gulf Crisis and major oil-shock ensued that drove stock prices down to 20 percent below 3000 by October of that year.
This time around, as in 1990, stock prices reversed first and NOW an international crisis is likely to erupt, once again complements of Saddam Hussein's Iraq. With the stock market apparently in a late-October crash mode like in 1929 and 1987 (this crash very well may carry into November), Saddam Hussein is once again picking a fight with the U.S. Iraq today announced that Americans may no longer participate in United Nations' weapons inspections in Iraq. In response, the United Nations has warned of "serious consequences" for Iraq if Baghdad does not immediately cooperate with U.N. resolutions. In effect, since Iraq's action today violates the Gulf War ceasefire agreement, the "Mother of All Battles" is back on.
The problem, however, is that this time around you can bet Saddam Hussein is going to come out on top rather than the U.S. Why? Because as I have been trying to point out for the past six years, Iraq's invasion of Kuwait and the Gulf War in 1990 and 1991 were likely part of a large-scale strategic deception that integrally involves Russia and a future third world war.
Thus, the Grand Supercycle crash, the ultimate upset of prevailing expectations, is taking the shape I have been warning the world about for so very long- Saddam's Revenge. This revenge should entail a coming chemical SCUD missile attack against Israel, war in the Middle East and, eventually, a global nuclear war. What a tragic shame...
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"UN Warns 'Serious Consequences' of Iraqi Ban"
October 29th, 1997
By Anthony Goodman
UNITED NATIONS (Reuters) - The Security Council condemned Iraq's
decison Wednesday to bar Americans from U.N. weapons inspection
teams on its territory and warned of unspecified "serious
consequences" if Baghdad persisted.
Iraq earlier gave the 10 Americans among about 100 U.N. arms
personnel now in the country a week to leave, as from Thursday
morning.
In reaction, the U.N. special commission (UNSCOM) set up after
the Gulf war to eliminate Iraq's weapons of mass destruction
immediately suspended all field operations, such as inspecting
suspect sites. But staff continued other duties.
"The Security Council condemns the decision of the government of
Iraq to try to dictate the terms of its compliance with its
obligation to cooperate with the special commission," the council
said in a statement read at a brief formal council meeting and
backed by all 15 members.
The council demanded that Iraq "cooperate fully ... without
conditions or restrictions, with the special commission in the
implementation of its mandate."
Certification by UNSCOM that all Iraq's weapons of mass
destruction have been scrapped is a condition for easing
sanctions imposed after its August 1990 invasion of Kuwait.
"The Security Council warns of the serious consequences of Iraq's
failure to comply immediately and fully with its obligations
under the relevant resolutions. The council is determined to
ensure rapid and full Iraqi compliance with the relevant
resolutions and for that purpose will remain actively seized of
the matter," the statement said.
It also reminded Iraq it was responsible for the safety of UNSCOM
personnel.
The council reacted within hours of receiving a letter from Iraqi
deputy Prime Minister Tareq Aziz saying the U.S. members of
UNSCOM had turned it into an instrument of Washington's policy.
He accused them of preventing UNSCOM from certifying that Iraq no
longer had any forbidden weapons, thus blocking the lifting of
sanctions.
Iraq's action was in response to a resolution adopted by the
Security Council last week threatening a ban on travel abroad by
Iraqi officials who interfere with UNSCOM teams. Since that
resolution was adopted by 10 to none, but with abstentions by
China, Egypt, France, Kenya and Russia, Baghdad might have felt
it could defy an apparently divided council.
But the council statement, drafted by Britain and agreed on short
notice, demonstrated that all 15 members were united when
confronted with a blunt Iraqi challenge.
A U.S. official said the council statement would have been issued
even sooner if the Chinese delegation had not had to wait for
instructions from superiors involved with President Jiang Zemin's
current state visit to Washington.
UNSCOM's New York-based executive chairman, Richard Butler of
Australia, told reporters: "What cannot happen is that the United
Nations be told by one member state which of its personnel is or
is not acceptable...
"Who is next? Today the United States, tomorrow the United
Kingdom, and so on. This is wrong," Butler said.
He also said he was calling off a two-monthly visit he was
scheduled to make to Baghdad beginning Nov. 7, accompanied by his
deputy, Charles Duelfer, an American. Consultations on Friday
with a team of visiting Iraqis had also been canceled.
He said UNSCOM used the services of about 1,000 people in a year,
many on short-term missions. But it had a full-time staff of
about 160 -- some 60 in New York and 100 in Baghdad.
In his letter to the Security Council, Aziz said the "very large"
number of American members of UNSCOM "render the special
commission an institution influenced to a large extent by the
American hostile policy aimed at fulfilling the American illegal
and illegitimate objectives."
Iraq was "ready to continue" cooperating with UNSCOM, "provided
that no individuals of American nationality shall participate in
any activity of the special commission inside Iraq," he said.
Aziz also repeated a long-standing demand for the removal of a
U.S. U-2 spy plane which works with UNSCOM. He said the aircraft,
based in Saudi Arabia, provided "deliberately misleading
information with a view to create problems and superficial
crises." He said it could be replaced by an Iraqi aircraft or by
a plane "belonging to a neutral state that has no special
objectives against Iraq."
Aziz also said Iraq was prepared to receive a committee of
Security Council members -- except from the United States -- to
verify Iraq's claim it no longer had banned weapons.
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Los Angeles Times
October 10, 1997, Friday
"SADDAM'S SECRET WEAPON IS WORSE THAN IMAGINED;
ARMS: A MYSTERIOUS MISSILE FIRED AT ISRAEL
HAD ONLY TO HINT AT BIOLOGICAL
WARFARE TO PERSUADE BUSH TO END THE GULF WAR."
BY AVIGDOR HASELKORN
(Avigdor Haselkorn, a strategic analyst, has recently completed
a, book on the role of mass destruction weapons in the Gulf War.)
In the aftermath of the Gulf War, the spread of mass
destruction weapons and long-range missiles in the Middle East
has accelerated. The buildup of chemical and biological weapons
arsenals by rogue regimes is readily observed and is directly
traceable to Operation Desert Storm. This is the real, undeniable
Gulf War syndrome.
How can we explain such adverse results from a war fought
under the banner of the "new world order" and aimed to disarm the
nuclear, chemical and biological capabilities of a dangerous
dictator?
Recent information indicates that the Middle East came
remarkably close to the brink of disaster in 1991. In the early
morning hours of Feb. 25, a strangely armed Iraqi missile landed
in southern Israel. It was an Hijarah, an Iraqi variant of the
Soviet Scud B, topped with a concrete and metal warhead. Israeli
military intelligence suspected that it might have been a
primitive biological warhead.
The incident left U.S. decision makers, especially Gen. Colin
Powell, in a quandary. Although there was no agreement among
intelligence analysts as to the meaning of the "stone age" Scud,
the possibility that it was a warning shot on Saddam Hussein's
part could not be dismissed. President Bush knew that if an
unconventional warhead fell inside an Israeli city, the
retaliation would be swift, possibly even with nuclear weapons.
If the missile carried a biological warfare payload of, for
example, anthrax agent, it could have caused heavy casualties. It
was unclear whether the Iraqis had the warhead technology to
spray the spores in the air as an invisible aerosol, which could
be inhaled. But, U.S. defense intelligence warned, "effective
dissemination of the agent was not even necessary if a biological
weapon warhead were to be used as a terror weapon against
civilian populations."
The president knew that even if he allowed the Israelis to
intervene in western Iraq to neutralize the Scud threat, there
was no guarantee that they would be completely successful.
Moreover, the missile appeared to have been fired from deep
inside Iraq, which would have greatly expanded the search area.
Under these circumstances, Bush had little choice but to
abruptly order the "suspension" of hostilities, in effect
submitting to Iraqi strategic blackmail.
Bush can blame his military planners for this sorry outcome of
the war. Not only was there an almost catastrophic intelligence
failure in the Gulf, for example with regard to locating Iraq's
chemical/biological weapons cache, but the missiles kept coming
despite claims by coalition pilots of total kills that amounted
to 300% of the entire Iraqi inventory. After the second salvo
into Israel, the CIA warned, "We cannot rule out that Iraq will
escalate to strategic i.e., countercity, including civilian
targets chemical attacks--perhaps during its next strike."
Saddam Hussein did not resort to his mass destruction option
because those were last-resort weapons. However, intelligence in
both Israel and the U.S. estimated long before the war had
started that when the chips were down, Saddam would use those
weapons without hesitation.
When the ground war started on Feb. 23 and Iraq's defenses
crumbled, the door to Baghdad was wide open. Jerusalem and
Washington both expected that Saddam would take drastic action.
Israel's defense minister Moshe Arens on Feb. 27 phoned Richard
Cheney, his American counterpart, to warn that Saddam could
resort to chemical warfare against Israel "exactly now."
Accordingly, Arens said, "Israel must take action to neutralize
this threat." This assessment and Israel's preparations to enter
the war undoubtedly played a major role in Bush's decision later
that day to end the fighting.
In hindsight, the intelligence conception of Saddam's last-
resort strategy, the prevalence of which was unaffected by the
controversy over the Hijarah, seems to have been vindicated.
Before Desert Storm, Saddam armed 191 weapons, including 25
warheads, with anthrax agent, botulinum toxin and aflatoxin. Rolf
Ekeus, then chairman of the U.N. Special Commission for the
disarmament of Iraq, said: "Their use, which seemed to have been
possible at any time, would have killed millions of people."
Unless the war ended when it did, unless Bush heeded Powell's
warning against fighting past the "rational calculation," the
Middle East would have likely plunged into a full scale mass
destruction exchange between Iraq and Israel.
But stopping the war entailed a steep price. The conflict left
Saddam on his throne, and it also convinced Iran, Syria, Libya
and North Korea that mass destruction weapons and long-range
missiles are the new praetorian guard. Increasingly, low-
tech/low-cost chemical and biological arms are seen as
instrumental for exercising political blackmail and shielding
terrorist activity. Little wonder that a "Club MAD" (for mass
destruction) has emerged with rogue countries helping each other
develop the most deadly capabilities and the means to deliver
them. They aim not only to hold Israeli, Saudi and South Korean
cities hostage, but in due course Japanese and European as well.
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BBC Summary of World Broadcasts
October 10, 1997, Friday
"Newspaper warns Iraq may embark
on another Kuwaiti-style 'adventure'"
Source: 'Al-Quds al-Arabi', London, in Arabic 8 Oct 97
Text of report by London-based newspaper
'Al-Quds al-Arabi' on 8th October
Numerous signals are emanating from Baghdad these days; these
reflect a state of concern and frustration and remind us in one
way or another of the period that preceded the Iraqi invasion of
Kuwait. Maybe this is the reason why the US administration was
prompted to rush to send the giant aircraft carrier Nimitz to the
Gulf region.
True, the US statement issued in the wake of the decision to
cut short the carrier's routine tour of south Asia and return to
the Gulf spoke of a desire to impose respect for the no-fly zones
in southern Iraq and to prevent any Iranian aircraft from
violating them again, but it is also true that Washington
received information to the effect that Iraq is preparing for
some kind of action to extricate itself from the current state of
siege which is claiming thousands of lives from among its people
every month, and there is no sign of an imminent way out.
The Iraqi official rhetoric against the US administration is
continuing; the same thing applies to the UN inspection teams
headed by Butler. Iraqi officials daily complain about the two
parties' humiliating practices against their country.
In addition to the statements made by Iraqi Deputy Prime
Minister Tariq Aziz in which he strongly criticized the UN
inspection teams and their impossible demands, Iraqi Information
and Culture Minister Hammam Abd-al-Ghafur has held the US
administration responsible for not implementing scores of
humanitarian contracts that Iraq submitted to the United Nations
in implementation of the oil-for-food agreement ; the contract
concerning the purchase of ambulance vehicles was cancelled, and
the same thing applies to the spare parts needed for the transit
oil pipelines, in addition to other medical and humanitarian
contracts.
Iraqi officials are fully aware that the UN inspection teams
will not submit a report confirming that Iraq is free from mass-
destruction weapons, no matter how cooperative Iraqi officials
are. And even if the commission submits such a report, there is
no guarantee that the oil blockade will be lifted under Clause 22
of Security Council Resolution 687, which stipulates that the
blockade be lifted once it is declared that Iraq is free from the
prohibited weapons.
The US administration links the lifting of the oil blockade
imposed on Iraq with Iraq's efforts to prove its peaceful
intentions, even after all mass-destruction weapons are
destroyed- an impossible condition which means that the blockade
will not be lifted in the near or distant future.
In the light of this situation, this state of despair and
frustration could prompt the Iraqi government to embark on a new
adventure to break the current deadlock, draw attention to the
tragedies caused by the blockade, and try to shuffle the cards
internationally and regionally.
The current stage of calm on the Iraqi front is not
reassuring, because the Iraqi government does not normally remain
silent about the violation of its sovereignty in the north
through the Turkish invasion and the Iranian air raids on the
Iranian opposition's bases in southern Iraq.
Iraq experienced states of siege before, which prompted its
president to say on more than one occasions, "severing necks, not
livelihood" and this phrase was a prelude to occupying Kuwait. It
is noted that the same tone is persistently repeated these days.
The Security Council, on which Iraq is greatly relying to lift
the blockade, has become one of the US State Department's organs
following its policies. The Iraqis feel that the international
community has disappointed them regarding this situation.
It is a duty to warn of some kind of an Iraqi surprise that
could make the unexpected expected, because Iraq has had enough
and its ability to display self-restraint is now rock-bottom.
The certain thing is that any adventure on which the Iraqi
government embarks will prove costly for it, but more costly for
its neighbours, since Iraq has nothing to lose.
Hopefully the Iraqi government will not behave recklessly and
the international community will make a move to ease, if not
lift, the blockade as soon as possible. And if a surprise is a
must, let it be delayed until after Iraq reinforces the internal
front, opens up politically to national forces and broadens the
circle of participation in decision making through a larger
degree of democracy.
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"Oil prices jump as U.N halts Iraq disarmament work"
Wednesday October 29 8:09 PM EST
LONDON, Oct 29 (Reuters) - Crude oil prices jumped on Wednesday
as tensions between Iraq and the United Nations resurfaced after
the world organisation announced it would temporarily suspend its
disarmament operations in the petroleum-producing Middle Eastern
nation.
The U.N. decision followed an announcement by Iraqi President
Saddam Hussein that Baghdad would cooperate with U.N weapons
inspectors but wanted U.S members of the team to leave within a
week.
London futures for bellwether Brent blend crude closed up 21
cents at $19.65 a barrel.
Dealers scrambled into oil futures in London and New York amid
renewed concerns that Baghdad might decide not to renew crude
exports under the U.N. oil-for-food exchange when the deal comes
up review in December.
Iraq said it would continue to cooperate with other U.N. weapons
inspectors, at least temporarily but Washington said the ban on
U.S. members of the team was unacceptable.
Washington later issued a statement saying that Iraq's move has
``potentially grave consequences.''
At stake for world oil markets are about a million barrels daily
of Iraqi sales the special oil-for-food arrangement aimed at
getting food and medicine to Iraq's poor.
Amid booming oil winter demand, a cut of that supply could send
prices spiralling, dealers said.
``This looks like an attempt by Iraq to drive a wedge between the
United States on one side and France and Russia on the other,''
said Christopher Bellew of brokers Prudential Bache Futures in
London.
``There is the possibility that the 'oil-for-food' deal might not
get renewed which would definitely lift prices,'' he added.
Iraq is near the end of it's second six month long ``oil-for-
food'' deal that allows $2 billion worth of oil sales in exchange
for food and medicine.
Many oil traders have already factored a third oil deal in the
first half of 1998 into their calculations and even a delay in
starting the third deal could lift prices, Bellew said.
``The news is certainly more bullish than bearish,'' Bob Finch,
head of independent trading company at Vitol SA, said.
The Iraqi ambassador to the United Nations, Nizar Hamdoon, said
his government had decided to ban American arms inspectors out of
``frustration'' with trade sanctions that have been left in place
since the 1991 Gulf War.
But the leadership in Baghdad stopped short of cutting ties with
the United Nation completely.
Instead, it posponed a threat to suspend ties with the United
Nations Special Commission (UNSCOM) charged with disarming Iraq's
prohibited weapons and said it would continue to work with UNSCOM
in a ``manner respecting Iraqi sovereignty.''
Earlier this week Hamdoon said ``it is premature to discuss
whether there will be a third round (of oil sales).''
Wide-ranging sanctions in place against Iraq for more than seven
years can be lifted only when the U.N. Security Council is
satisfied that all Iraq's chemical, biological, ballistic and
nuclear weapons potential have been destroyed.
Crude oil prices in dollars per barrel:
Oct 29 Oct 28
IPE December Brent 19.65 19.44
NYMEX December light crude 20.74 20.45
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Global Economy Faces Trouble
By Charles J. Hanley
AP Special Correspondent
Sunday, October 26, 1997; 1:26 p.m. EST
The talk these prosperous days, from Wall Street to Wuhan, is of
boundless economic horizons. But just over the horizon lies a
familiar patch of troubled waters, a blue-green whirlpool called
the Persian Gulf.
As the global economy sped ahead in 1997, navigating through
market dips and Asian currency scares, optimists began
speculating about a ``repeal'' of the laws of boom and bust. But
they'd better repeal the laws of internal combustion first.
A check of America's gas tank tells you why: The United States
is importing more than half the oil it burns. And Persian Gulf
petroleum is even more important elsewhere in the world economy,
especially in parts of Asia where the optimism already is
tempered by currency crises and stockmarket slumps.
It's been a generation since the industrial world first learned
what an oil crisis could mean.
At that time, in 1973, an Arab embargo led to a quadrupling of
oil prices and a world recession. A few years later, Iran's
revolution produced another global oil squeeze and economic
slump.
In those years, the United States relied on imports for as
little as one-third of its oil.
The new heavy dependence on foreign oil troubles some in
Washington. Hazel O'Leary, the former energy secretary, said
earlier this year that ``we need a wake-up call'' that only a
new oil price shock might provide.
Oil traders, of course, don't need reminders. When the U.S.
aircraft carrier Nimitz rushed to the Persian Gulf this month,
amid heightening tensions there, crude oil prices jumped almost
$2 a barrel, to more than $23.
That ``crisis of the month'' may be subsiding, but the twists
and turns of the Gulf whirlpool remain unpredictable:
--In the Gulf's tight quarters, crowded with American, Iranian
and other naval vessels, miscalculations and mishaps easily can
escalate into confrontation.
--Iran and Iraq might clash over Iraq's sheltering of anti-
Iranian guerrillas, a flashpoint for tensions in recent weeks.
--Iraq might draw U.S. or broader international retaliation if
it violates ``no-fly'' zones or rejects U.N. weapons
inspections.
--Terrorists might again attack American forces in the region.
If an Iranian link is uncovered, a major Gulf showdown could
result.
Crises like these would each affect the flow of oil in different
ways. For one thing, long-distance pipelines make the region
less dependent on Gulf shipping than it once was. But any Gulf
conflict inevitably would drive oil prices up sharply and
quickly. And the waves and ripples from such an emergency, even
if short-lived, would reach everywhere.
America's oil imports have been climbing since the mid-1980s, as
domestic oil production declined by more than 25 percent. The
U.S. appetite grew in the '90s with the booming economy and the
popularity of sport utilities and other gas-hungry vehicles. So
far this year, imports have supplied 55 percent of consumption,
one-fifth of that coming from the Persian Gulf.
In Asia, the heavier dependence grew even more quickly.
China, an oil producer, became an oil importer in 1993 as it
modernized industry from coastal Shanghai to inland Wuhan.
Expanding automobile ownership across East Asia may help boost
global consumption from today's 73 million barrels a day to over
90 million by 2010, energy analysts say.
Already operating at more than 90 percent capacity, oil
producers will scramble to keep up. The big energy companies
have big plans for the Caucasus and Central Asia, but the flow
from many of those fields lies years over the horizon.
Until then, the Gulf, with its oil and its crises, lies
comfortably --and uncomfortably -- closer at hand. It's a fact
of life sometimes forgotten as stock indexes have risen on Wall
Street, but never forgotten in the whirlpool itself.
``My job is stability,'' a U.S. destroyer captain told a
reporter in the Gulf earlier this year. ``Because if this neck
of the world blew up, what would really suffer is the world
economy. That's what it all comes back to -- economics.''
EDITOR'S NOTE -- Charles J. Hanley has reported on international
affairs for The Associated Press since 1976.
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