Oct 23, 2006 Hunker down & put your house in order says Harry Schultz 321gold . . . corr

Harry Schultz Life Strategies
~ For THINKING humanoids ~ (in 80 nations)

Hunker down and put your house in order

Harry Schultz
extracted from the Harry Schultz Letter [HSL] #656, dated Oct 1, 2006 - DJIA 11,679
Oct 23, 2006

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Big Picture

For this double-birthday (mine & HSL) edition, I'm going to boldly go where no one has skateboarded before. If U find it brain-boggling, blame the fumes from scores of birthday-cake candles. This ties in with our cartoon of the month, reflecting that if U want to help "fix the world," U have to stick your neck out -- which I have done for 42 years in HSL. Our seemingly-random choice of the long-neck giraffe as our mascot/symbol was apparently no accident. Here we go, with neck out-sticking:

October 2006 is potentially the most dangerous, risky month in modern history. That's mostly because US elections come on Nov 7. Geopolitically (where HSL "lives"), the US is bound like Gulliver (the giant tied down by the little people, the Lilliputians). Its military is stretched to a danger point & its mostly bumbling politicians (red & blue) are unable to escape the clutches of 2 losing & unwinnable wars... literal tar pits. That makes the following otherwise-illogical moves as logical possibilities in October, when Washington would be acting or failing to act, for election reasons:

1. Washington's so-called neo-cons coerce Bush to bomb Iran & immediately declare Martial Law or a state of war in the US, to stem dissent. This could swing enough disillusioned conservative voters & some war-frightened swing-voters to vote Republican & prevent a Democrat Congress election win, which would in turn block the widely rumoured plan by Democrats (if they control the House) to impeach Bush &/or try Bush&Cheney for war crimes.

••• Flash: 9/20 NYT/CBS poll shows public very unhappy with Congress, favour voting OUT all incumbents. This puts big pressure on White House to reverse public opinion (via radical action?). Or:

2. Israel bombs Iran, alone. Highly unlikely due to govt unpopularity, but if successful would make govt popular again, & may be necessary if they fear Bush won't act, ever. Rumour says it's being considered. Or:

3. Israel bombs Iran with US help/blessing, & both declare a state of war.

4. Russia invades (liberates) Abkhazia & South Ossetia & gets into position to invade or isolate north Georgia. This prediction is certain to come true, if not now, then a bit later. But, Oct would be an ideal month -- when Bush would be loathe to support or help Georgia with US under pressure elsewhere, & when he dare not risk any new US military commitment, strongly opposed by voters. Russia will ignore world outrage. They couldn't care less. They hold all the aces (oil / gas / nuclear / natural resources / public support).

5. If Israel &/or US declare state of war, look for US & Israel foreign exchange controls with immediate effect. Sending funds abroad blocked/limited. (word to wise is-)

6. If any of the above occur, commodity / metal / oil mkts will move notably higher. Oil would lead the way. If Iran is bombed (now or later) they'll close the Strait of Hormuz in the Persian Gulf -- through which most regional oil must pass, increasing oil's price by 50% in one day. Don't be without 1-2 good oil stocks.

7. I'm told in the 3rd week of Oct, US history's greatest personal/character attacks will take place against politicians in key red/blue states, near enough to Nov 7 to prevent a proper defence by the accused, mainly by Republican neo cons who fear losing the power they've come to love. It'll be akin to the attack on John Kerry & his Swift boats -- which probably cost him the election.

8. Some geo-political wild card may be played during Oct when Washington is in limbo, something as wild as a China invasion of Taiwan, or China takeaway of the Spratly Islands, or a No. Korean mega missile test, or a No. Korean attack on So.Korea, or a coup d'état in Pakistan - putting nukes under control of militants, etc. Oct is a free pass month for wild/risky moves.

9. A crisis is brewing at the US Fed. Reread my 6/4 pg 2 report re Fed vice chairman Ferguson, in charge of crisis management, who resigned suddenly - with 8yrs left to serve. Will he blow the whistle in Oct on "illegal" or outrageous Fed actions, to stop the rot? Oct might tempt him.

10. Beans spilling has just begun with revelations that US govt spending/deficits are vastly bigger than reported (& the reported ones are already horrors). This may have political repercussions in Oct. Congressman Jim Cooper (D-Tenn) says US Financial Report by US Treasury Dept (which nobody reads or knows exists) reveals "US debt & commitments total not the $8.3 trillion reported, but $49 trillion, 6x more than reported! Also, the US deficit is not 2.6% of GDP & shrinking, but 6.2% of GDP & growing fast." Also, the true 2005 deficit was not PB's $318.5 billion, but $760 billion. There's more & an explanation of the different yardstick mirror tricks (U can check it out here - to The Financial Report of the United States, which Congressman Cooper is now publishing for the whole world to read. - U can also vet the data from: The Financial Report of the USA [you can buy from Amazon], published by Nelson Current & called by Cooper "the official report the White House does not want you to read." Also contains letters from David M. Walker, Comptroller General & head of the US Govt Accountability Office (GAO), who matter-of-factly states that America has a "broken business model."

Editor's note: Lots LOTS more (including the full list of 17 predictions) follows for HSL subscribers. You owe it to yourself & your family to sign up for HSL...
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