Don't Ignore the Warning Signs: World War III is Escalating!

Dear Subscribers,

2007 could be a wonderful year for stock investors. The Federal Reserve appears to have engineered a soft landing. Retail sales, unemployment, interest rates and even corporate earnings all seem to confirm the U.S. economy is on track.  If the price of oil holds below $60 a barrel, I wouldn't be surprised to see the Dow Jones jump 10% even 12% this year — better than most Wall Street analysts' predictions of 8%.

The problem, of course, is our enemies overseas and the increasingly questionable leadership in the White House.

Instead of listening to the Baker/Hamilton commission and looking to wind down the war in Iraq, President Bush may well be poised to touch off a wider conflict. A war with Iran may be only be a few months away.

President Bush has moved another Aircraft Carrier group into striking distance of Lebanon, Syria and Iran and this should be of great concern for every American. The President made it clear that Iran and Syria are financing deadly attacks on both U.S. and Iraqi government forces in Iraq. Both countries' assets in Iraq are now targets.

Keep in mind, I warned about Bush's intention of invading Iraq more than a year before it hit the news media.

President Bush is convinced the only way of dealing with Iraq and, for that matter, our radical Islamic enemies in Iran and their supporters in Syria - is via a military solution.

I've already offered my ideas on how to defeat our radicalized Islamic enemies without depending on a military solution. That approach is not appreciated by this White House and the end result may well be a worst case scenario I'm warning of — a full-fledged war with Iran, Syria and a Hezbollah dominated Lebanon while we're still fighting Al Qaeda on several fronts, including efforts to attack our country here at home.

In the worst case scenario, we're going to see some real horrors take place in 2007. I hope I'm wrong. I really hope I'm wrong. The consequences of a War with Iran will be $100+ oil in 2007 which will mean record precious metals prices.         

The warning signs for this worst case scenario are appearing very steadily in the U.S. media and have intensified since the President's latest Iraq speech.

World War III is expanding; please find below a few links for some recent news stories I consider essential reading for every investor and parent of children eligible for(God forbid) a military draft.

Our best case scenario, of course, would be for the Iraqi government to make headway in quelling the sectarian violence and for the United States not to be forced to take on Iran and Syria. If that proves to be what happens in 2007, I'd expect oil to fall below $50 a barrel, perhaps as low as the $45 price range, which is where there's a technical long term price support.

I urge you to invest as if the worst case scenario evolves. I have no doubt that Iran wants a war with the United States. The fact is we don't have the man power to wage a wider war in the Middle-East. We just don't have the troops. A war with Syria and Iran would mean missiles, bombs and heavy artillery but no land invasion.

Pictures of bombed hospitals, schools and retirement facilities would become standard fair in the Arab and World media. Every day the United States fights would be painted as a war against innocent Islamic women and children for one purpose -- to STEAL the oil wealth of Islam. Widening this war will be a no win situation.

The key to making 2007 a big year for your portfolio is to diversify your investment portfolio with gold, platinum, silver and the right oil sector investments. Pay attention to the warning signs and 2007 could be an enormous year for your investment portfolio even as chaos unfolds on the world stage.

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News articles worth your review:

Negroponte Warns: Al-Qaeda the biggest threat and emboldened Hezbollah is a growing danger

http://news.yahoo.com/s/ap/20070112/ap_on_go_ca_st_pe/national_threats_11

Doomsday Clock being moved forward

http://news.yahoo.com/s/nm/20070112/sc_nm/doomsday_clock_dc

Bush's speech carries not so well hidden threats to Iran, Syria

http://www.aljazeera.com/me.asp?service_id=12768

2007 is going to be an incredibly challenging year. The investing decision you make should be based on the weighting danger and opportunity. Stay tuned!

Best Wishes,

James DiGeorgia

Editor and Publisher

Gold & Energy Advisor