DOW 10,000 & SADDAM'S REVENGE: PART II

On September 6th of this year, the DJIA closed decisively below the 10,000 mark and entered a sharp drop. Then, Saddam's Revenge began to take its newest, ugly form. On September 11th, terrorists hijacked U.S. jetliners and drove them into the World Trade Center and Pentagon. The Twin Towers collapsed, the Pentagon burned and thousands of Americans perished. In response to the 9/11 terror and its potential impact on the U.S. economy, stock prices dove to just above Dow 8000, almost 20% below the psychologically important 10,000 mark.

As I and others see it, on September 11th Saddam achieved what he attempted but failed to achieve in February of 1993: the destruction of the Twin Towers, the ultimate symbol of American 'imperialism'. (That Saddam sought to take down the Twin Towers in 1993 is made clear by Laurie Mylroie's book - Study of Revenge: Saddam Hussein's Unfinished War Against America.)

Following the horror of September 11th, a new, insidious form of terrorism started to effect our nation: bioterrorism. Anthrax-laced mail was sent to various media organizations as well as to key senators' offices at the U.S. Capitol. While not causing mass casualties like the 9/11 attacks, this new form of terror still managed to stoke tremendous fear across the nation. The potential catastrophy of biological weapons attacks by terrorist agents on U.S. soil became widely recognized for the first time.

Since the reversal below Dow 10,000 in September, collective confidence and stock prices have rebounded such that a retest of the psychologically significant 10,000 mark is now underway. The odds are that this retest of Dow 10,000 will fail and the stock market will again reverse from the key psychological barrier. Consequently, it is now reasonable to expect another wave of negative historical events that are a product of Saddam's Revenge.

To understand how this is so, one should first examine the historical pattern.

Since 2000, an epic "Grand Supercycle" turning point in the U.S. stock market and American history appears to have been underway.

Dow 10,000 has become the key level identifying the top now underway in U.S. history. Dropping below this level signifies the most important historical turning point is our nation's history. As I have been warning about for years, this reversal may very well be associated with "Saddam's Revenge" and the outbreak of World War Three.

Importantly, the current situation in the U.S. stock market and world politics is a parallel of what occurred in 1973 and 1990. In the early part of 1973, the DJIA reached a peak several percent above the "Magic 1000" barrier in the DJIA. The Dow then reversed below 1000 into the Spring of that year. The market eventually rebounded and by October of 1973 the DJIA again was challenging the psychologically significant thousand mark when, seemingly out of the blue, world events came into play that drove the DJIA sharply down from Dow 1000. Syria led an Arab surprise attack against the Jewish state on Yom Kippur- the Day of Atonement - and then OPEC imposed an oil embargo on the West for supporting Israel in the conflict. The subsequent oil-shock brought about a 40 percent drop in stock prices by October of the 1974.

Similar to 1973, when the Dow reversed from the 3000 mark in mid-July of 1990 (the index closed on July 16th and 17th at precisely 2999.75 and turned down), it coincided with a speech in which Iraqi leader Saddam Hussein threatened Kuwait. The stock market then fell five percent as Iraq started massing forces on its southern neighbor, and then, on August 2nd, Iraq invaded Kuwait. Oil prices once again surged and stock prices plunged 20 percent by October of that year.

This time around the DJIA reached a final peak above Dow 10,000 during the the past couple of years. The stock market then fell significantly from this key psycholgocical barrier bottoming near Dow 8,000 in early Autumn. A rebound then took place into the present time such that the critical 10,000 mark is now being retested. What will happen next? I fear Saddam's Revenge will become much, much worse.

The odds are that this time around, with a reversal from Dow 10,000, we are likely to see a far more severe crisis than anything that has occurred in history. As I have been warning for years, what is coming is a Grand Supercycle collapse in the form of "Saddam's Revenge" and World War III.

Iraq's 1990 invasion of Kuwait and the 1991 Gulf War were not what they seemed to be. Rather than being a great victory for the West, the Persian Gulf Crisis and War were part of a strategic deception carried-out by Saddam Hussein's Iraq and the Arab powers on the behalf of Moscow. The ultimate goal of this deception is likely what we are witnessing now. A situation in which seeming imperialist aggression by the U.S. and Western allies against Iraq leads to an all-out world war that ultimately will result in the destruction of Israel and the Western powers- the long-term objective of Russia and the hardline Arab states.

Particularly during the past decade, man has become utterly self-deceived. The seeming fall of world communism and collapse of the Soviet Union was a staged deception. Why do you think the nuclear-armed communist East, hellbent on destroying the West and taking over the world, would suddenly decide to convert to Western capitalism and give up its pursuit of world domination at our expense just as the "Window of Vulnerability" was opening up? Why would the Arab powers, wholly devoted to the destruction of the Jewish State and increasingly armed-to-the-teeth, suddenly do a total flip-flop and seek peace? I do not believe this is because man transformed into a peace-loving, reasonable creature over the past several years. To the contrary, it is because some men love war while other men love money; hence, the basis for mutually disadvantageous false agreements to bring about a third world war and global self-destruction. The military powers of the East, seeking war, have offered the West a false peace in order to instill a false sense of security and secure the element of surprise to launch a successful attack. The economic powers of the West, seeking money, have accepted this false peace out of desire for material security, economic prosperity and new markets to exploit. Thus, the forces of greed and fear have come together in the name of creating global harmony and peace when, in reality, they are leading the world toward utter disharmony and a self-destructive holocaust of mass destruction.

The shape the coming war will take is revealed by the lies the West has been told. One of the most obvious parts of the East's deception involves Saddam Hussein's Iraq.

Why do you think Saddam invaded Kuwait and picked a fight with the West just over ten years ago? At the time the West was looking for any excuse to curtail Iraq's growing military strength and pursuit of "The Bomb", since Western oil-interests and Israel's security were increasingly endangered.

Yet, this is precisely what Saddam provided to the West. By invading Kuwait and threatening Saudi Arabia, Iraq gave the West a perfect excuse to wage a major war that would counter Saddam's growing military strength and the threat he posed to Israel and the oil-rich Persian Gulf region.

Since everything apparently went so well with the Gulf War, i.e., Iraq was quickly and decisively defeated and the world's oil supply was resecured, the West never considered the possibility that an ulterior motive might have been behind Saddam's seemingly reckless invasion of Kuwait and world confrontation. Yet, an ulterior motive there likely was: to make Iraq a symbolic victim of Western imperialism and world "Zionism" in order give Saddam justification for triggering a jihad, or holy war, against Israel and the West.

With Iraq's violent defeat by the West in the Gulf War, continuing U.S.-enforced economic sanctions against Baghdad and covert U.S. efforts to oust Saddam Hussein from power, Saddam's Iraq increasingly appears to be a victim of relentless Western imperialism in the oil-rich Arab world. In other words, Saddam has provoked the West into taking actions against his country that fit his conspiratorial worldview of Western "Zionist" oppression of Iraq and other Arab countries. In this way, Saddam is creating an excuse to seek revenge against the U.S. and Western powers for the ongoing unfair treatment of Iraq and the Arab world in general.

Since, if my hypothesis is correct, "Saddam's Revenge" will ultimately lead to the destruction of Israel and the West, the Iraqi dictator will end up looking like a great Arab hero who confronted the West, stomached tremendous imperialist oppression and eventually struck back such that his Zionist oppressors were ultimately destroyed. After the dust settles, Saddam can proclaim that Allah is on his side and force the Moslem world to submit to his "divine rule".

How is it that "Saddam's Revenge" will result in the destruction of Israel and the West? After all, as a military, economic and/or political power, Saddam's Iraq appears to be about as isolated and weak as could be. That, however, is the trick of it.

As Sun-Tzu explains in the "Art Of War", 'if strong, feign weakness'; 'if unified, project division'. Thus, Saddam's Iraq and Iraq's allies-of-old, i.e., the other Arab military powers along with the "former" and ongoing communist military powers of the East, have gone out of their way to project the image of division and weakness in the East. Yet, overall, Saddam and the authoritarian military powers of the East are still sitting on the largest military-machine ever known to man. The Beast simply is not dead, regardless of what the East wants us to make us believe and what the West wants to 'make believe'.

The question now is: In what way is Saddam going to seek revenge, and how will this be associated with the rise of Russia and the destruction of Israel and the West? I believe the answer has been revealed to me.

Back during the Gulf War, in February of 1991, I was engaged in a written correspondence with Robert Prechter, the "Elliott Wave Theorist", about what might eventually cause the Grand Supercycle crash and bear market we were both anticipating at the time.

One evening I was watching television when suddenly a special report aired of a chemical SCUD attack against Israel.

Surprised that Saddam had launched such a provocative attack, I contacted friends to let them know what happened. As I returned to the television to catch more news on the attack, I found nothing was being reported. When I awoke the next day, there was nothing in the newspapers. All said and done, I discovered that no such report had aired at the time I saw it.

Immediately after this odd experience, I mentioned to Mr. Prechter in a letter I was writing to him what I had seen. I speculated that I might had had a psychic vision of what would cause the Grand Supercycle collapse in the stock market we were expecting. Clearly an Iraqi chemical attack on Israel and a subsequent outbreak of some sort of new Arab/Israeli war would greatly upset investors' expectations and precipitate a large-scale decline in stock prices.

Right after sending this letter to Mr. Prechter, I had another experience that apparently revealed the full danger we were facing.

Upon reading a Bible prophecy to a friend that I believe depicts a future nuclear war (the Seventh Seal prophecy in the eighth chapter of the Book of Revelation), my friend and I heard an air-raid siren followed by the bellowed percussion of a nuclear explosion.

Coming so soon after my vision of a special report of a chemical SCUD attack on Israel, I concluded there must be a connection- the Grand Supercycle crash would involve an all-out war in the Middle East that would be followed by an all- out global war involving a nuclear holocaust.

From that moment on, my search began for what would lead to a Grand Supercycle crash in Western expectations via a nuclear third world war.

Thus, I discovered how the world has been utterly deceived by Saddam Hussein and the authoritarian military powers of the East. Western expectations are being intentionally misled to irrational heights in order to open the way for an ultimate upset in the form of a surprise third world war.

How exactly is it that an Iraqi chemical attack against Israel will be associated with an eventual global nuclear war? Well, I believe I later discovered the answer to that question with the "Zhirinovsky Connection".

Vladimir Zhirinovsky and other Russian nationalists (e.g., Alexander Lebed) are supposedly Saddam Hussein's ally.

In February of 1995, Zhirinovsky went to Baghdad and met with Saddam Hussein on February 26th, the fourth anniversary of Kuwait's liberation from Iraqi occupation and the second anniversary of the World Trade Center bombing which has been linked to Iraq. During a three- hour conversation they discussed a proposal by Zhirinovsky to create an anti-Western coalition between Russia, the Orthodox and Muslim world. Zhirinovsky told journalists after the meeting: "There is no confrontation between the North: Russia, and the South: the Arab and Muslim world". Zhirinovsky concluded his three-day visit to Baghdad by signing a draft accord to boost ties between Russia and Iraq.

The odds are that this suspicious connection between Saddam Hussein and Vladimir Zhirinovsky is signaling the upcoming events that will upset Wall Street's expectations and precipitate the Grand Supercycle crash. More specifically, there is reason to believe a new military confrontation between Iraq and the West is approaching that will seemingly bring about a military coup in Russia and the rise to power of a right-wing dictator, possibly Vladimir Zhirinovsky.

It appears that Saddam is facing a new military confrontation with the U.S., possibly in connection with the September 11th terrorism. Because Iraq has participated in the efforts of Osama bin Laden and the like to wage terrorist attacks against America, and becasue Saddam has continuously pursued the production of weapons of mass destruction, new American attacks against Iraq may be in the works. In response, Saddam may seek to trigger World War III.

Once the U.S. is bombing Iraq again, Saddam will have an excuse to seek revenge for the seemingly unending Western repression of, and military assaults against, his country. I believe this revenge will somehow involve what I've already foreseen: a chemical SCUD missile attack against Israel. That Saddam is planning such an attack, explains why he threatened to "make fire eat up half of Israel" several months before ordering Iraq's invasion of Kuwait in 1990. Furthermore, in a speech made on the anniversary of the start of the Gulf War two years ago, Saddam proclaimed: "The Arab countries should be asking themselves, 'Who will fire the 40th missile against Israel?'". Given that Iraq launched 39 SCUD missiles at Israel during the Gulf War, this clearly implies Baghdad is anticipating a new SCUD attack against the Jewish homeland.

Clearly, if Saddam's Iraq (and/or Syria) unleashes a chemical SCUD attack against Israel in connection with a new Middle East crisis, an action that will revive memories of Hitler's gassing of the Jews, all-out war will likely erupt in the Middle East. The U.S. will most likely seek to finally get rid of Saddam's Hussein for threatening to annihilate Israel and for destabilizing the oil-rich Persian Gulf region.

With the U.S. at war again with Iraq (possibly at the same time that NATO is drawn into a war against the Serbs), a pretext will be created for chaos in Moscow such that Vladimir Zhirinovsky or some other right-wing dictator suddenly rises to power by way of a military coup. (Although Putin is sufficiently nationalist in character to openly carry out what Russia intends to do). Western military action against a historical Russian ally like Iraq will seemingly stir a nationalist backlash in Moscow that brings about such a coup.

With a nationalist dictator in the Kremlin and the U.S. and/or Israel at war with Iraq and possibly other Arab powers, the way will be opened for Russia's "Last Dash to the South" (the title of Vladimir Zhirinovsky's supposed autobiography); a Russian military campaign to dominate an arc of territory to Russia's south stretching from the Balkans to East Asia. A major objective of this campaign is to overrun the Middle/Near East and thereby rest control of the world's oil supply.

Russia's last dash to the south will probably be associated with some sort of new Arab/Israeli war. I believe such a war is planned in order to provoke the "Samson Option", Israel's policy of nuclear retaliation against the Arab powers and Russia should Israel be hopelessly overrun. Israel's use of nuclear weapons, in turn, will create an ideal pretext for an all-out Russian nuclear attack against the West which, after the dust settles, Moscow will argue the West brought upon itself.

Clearly, if Saddam's revenge takes the shape I expect and leads to the nuclear destruction of Israel and the West, then Wall Street's current high expectations, reflected in the DJIA trading around 10,000, will be utterly upset. This upset of prevailing, misled expectations is effectively an ultimate crash, i.e., a Grand Supercycle crash.

Saddam's revenge and a future nuclear war will, however, fulfill religious expectations as embodied in Biblical prophecy. As I explain in my article "The Truth", a global nuclear war is consistent with the Seventh Seal prophecy from the eighth chapter in the Bible's Book of Revelation. As explained above, about a week after I saw that mysterious special report of a chemical SCUD attack on Israel in February of 1991, a friend and I heard an air-raid siren and nuclear explosion upon reading the Seventh Seal prophecy aloud. Thus, in my mind there is little doubt that religious prophecy has everything to do with a future nuclear war.

As apocalyptic tradition holds, after the Seventh Seal is broken, the truth behind Christianity is revealed. The question thus arises as to how a nuclear war entails the revelation of truth. I think I might have an answer. As explained above, my potentially supernatural experiences in February of 1991 led me to critically reexamine events in the Persian Gulf up to that time. Based upon this examination, I figured out how Iraq, Moscow and the military powers of the East have been creating an historically unprecedented, global-scale deception in order to launch a nuclear surprise attack against the West. The explanatory theory and supporting evidence behind this view is what the majority of my articles are about. Thus, one way the truth is, in effect, revealed by a future nuclear war is by corroborating the idea that the whole world has been utterly deceived by Baghdad, Moscow and the powers of the East. In other words, upon the surprise attack, prevailing expectations will be utterly upset because everyone believed a total lie. Therefore, at least in a relative sense, the truth is revealed.