Saddam's Revenge Begins...

This week the DJIA reversed below the psychologically important 8000 mark on very heavy volume and now a drop below the key 7600 level appears imminent.

While this week's reversal was mainly associated with a growing financial crisis in Asia, the truth is that a breakdown in collective mood could manifest as just about any kind of upsetting historical events. For instance, a reversal from Dow 1000 in October of 1973 took the form of an Arab surprise attack against Israel, an eventual Arab oil embargo against the West and an oil-shock that devastated the world economy. In 1990, after the DJIA reversed from 3000 , Iraq invaded Kuwait and a Persian Gulf crisis sent oil prices soaring and stock prices plunging.

Notably, the reversal from 8000 this week comes as we are into the latter part of October, when the 1929 and 1987 stock market crashes occurred. The seasonality of swings in mass mood is as negative as it gets during the fall, and particularly in late-October. Of the four significant stock market declines during the last decade, i.e., in 1987, 1990, 1992 and 1994- each bottomed in October, except in 1994 when the market bottomed in November. That now is the most likely period for extremes of mass panic and fear seems culturally reflected in the Halloween holiday- when society celebrates collective fear.

So how will mass fear manifest this time around? Well if this is really a Grand Supercycle crash that is beginning, then some of the most negative historical events imaginable could unfold. Indeed, as I believe God has revealed to me, "The Crash" will involve the most negative event imaginable- a nuclear third world war.

As is overviewed in "The Truth", an outbreak of world war three might have everything to do with a chemical SCUD attack against Israel. And where would such an attack come from? How about Saddam's Revenge...

"In the light of the gravity of the situation...it has been decided to refer the subject to the National Assembly to discuss it in a comprehensive way and raise the recommendations it sees (suitable) toward it," the official Iraqi news agency (INA) said.

INA said the decision was taken by a joint meeting of Iraq's Revolutionary Command Council and the command of the ruling Baath Party chaired by President Saddam Hussein.

"During the meeting the situation was discussed following the latest unfair resolution issued yesterday under American pressure and blackmail and on which five countries ... abstained," INA said.

A divided U.N. Security Council Thursday issued a resolution threatening Iraq with new travel sanctions after the United States and Britain failed to obtain an immediate implementation of any new curbs.

The Council voted 10 to 0 with five abstentions -- France, Russia, China, Egypt and Kenya -- on a resolution spelling out the "firm intention" to impose measures to prevent travel abroad by Iraqi officials responsible for blocking U.N. weapons inspection teams.

Scrapping Iraq's weapons of mass destruction and making sure they are not acquired again is a key requirement for lifting sanctions on exports, such as oil, according to a 1991 Persian Gulf War cease-fire resolution.

"There is no obvious horizon for the lifting of sanctions on Iraq and for the council's compliance with its obligations vis-a-vis Iraq which practically means that the council has abandoned its obligations due to the aggressive American attitude," INA said.

Iraq has warned it would consider ending cooperation with the U.N. Special Commission (UNSCOM) in charge of weapons inspections if new sanctions were imposed.

The new U.N. resolution maintains a suspension of the council's regular review of trade sanctions against Iraq until April. This means no easing of the embargo, imposed on Iraq when it invaded Kuwait in August 1990, will even be considered until then.

The resolution called for a list of Iraqis who have blocked U.N. inspections and threatened to ban them from travel abroad.

The council would have to take another vote before any action is taken.

The United States and Britain originally wanted travel bans instituted immediately but compromised to get Russia and France's vote.

However, both Moscow and Paris believed the final text was still too strong.