The REAL Cost of War: Bin Laden, Oil Prices & Inflation

Did Bin Laden Win?

Wall Street’s “Credit Crisis” is going to weaken the U.S. Dollar -- even more!

Dear Subscribers,

Shortly after the brutal terrorist attacks on September 11, 2001, Osama Bin Laden issued a declaration that he would bring the American economy to its knees.

It was pretty clear at the time he was intent both forcing the United States to spend Trillion(s) of U.S. dollars to fight the war on terrorism while at the same time saddling the U.S. economy with a skyrocketing price of oil.

The idea of using oil or weighing down a Superpower with a war of insurgency is nothing new. He did, after all, combat and ultimately defeat the Soviets in Afghanistan. His of using oil as an economic weapon was revealed in a 1998 interview in which  Bin Laden listed (as one of his many grievances against the U.S.) that Americans “have stolen $36 trillion from Muslims” by purchasing oil from Persian Gulf countries at artificially low prices. The real price of a barrel of oil, he insisted, should be $144 a barrel.

Osama’s Revenge!

Little more than ten years ago from when he gave that interview, the price of a barrel of oil has already exceeded $144 a barrel - a 1,300% increase in the price!

One month after 9/11, the New York Times wrote of possible “nightmare” scenarios that would deliver bin Laden’s goal. Neela Banerjee warned that among the “misguided decisions” that would put oil supplies at risk would be “that the United States attacks Iraq.” This quote was included in the story:

“If bin Laden takes over and becomes king of Saudi Arabia, he’d turn off the tap,” said Roger Diwan, a managing director of the Petroleum Finance Company, a consulting firm in Washington. “He said at one point that he wants oil to be $144 a barrel” — about six times what it sells for now.

Of course, we know now that Bin Laden didn’t have to become King of Saudi Arabia to achieve his goal; in fact, Bush’s policies delivered it for him. The Bush administration’s catastrophic decision to invade Iraq, sink the nation into debt to pay for that war, and consequently weaken the dollar have all caused oil prices to soar astronomically.

Iran is about to help Bin Laden, and rack in hundreds of billions of dollars in extra oil profits in the process.

As each day passes, the likelihood of an Israeli attack on Iranian nuclear research and production facilities increases. Just last week the Israel conducted combat and bombing training flights in Iraq in preparation.

On Thursday, OPEC’s secretary general after meeting with the President of Iran announced that while World energy needs will spike by more than 50 percent by 2030, adequate oil reserves, conservation and new methods of recovery mean supply will keep pace with demand. But he also cautioned that in the event of a U.S. or Israeli attack on Iran because of its nuclear defiance, his organization was unprepared — and unable — to make up for resulting oil shortfalls.

Abdalla Salem El-Badri told reporters at the presentation of the organization's long term oil market outlook. "It is impossible to replace the production of Iran," OPEC's No. 2 producer, “The prices would go unlimited ... I can’t give you a number.”

Tehran produced just over 4 million barrels of crude a day last year — more than 10 percent of OPEC's total production.

This means investors and speculators should be preparing themselves for some incredibly wild swings in the price of oil between now at the end of the year. It’s just one of several reasons I am warning about a dangerous spike in the price of oil to $200.

Two days ago after racking up big profits in my Gold and Energy Options Trader....

*        A 25% win in The Mosaic Company (MOS-NYSE).

• A 24% win in First Solar (FSLR-NASDAQ) in less than 24 hours.

...I made the gutsy promise of another big win - and actually named the stock I would make the big win with, Anadarko Petroleum (APC – NYSE), and it went just like clockwork, BAM!

As the market opened last Friday morning,
my subscribers grabbed a 64% windfall!

But Even Bigger Profits Lay Ahead – 
As Wall Street Swings Up and Down and the Dollar Gets Smashed!

Yesterday, we made a new trade recommendation that is designed to give subscribers a nice healthy profit by the end of the trading day on Friday.

We’ll soon also be jumping back in with options on APC very quickly. The U.S. Dollar is on the verge of taking a bigger and deeper nose dive. Today, the U.S. Labor Department reported that consumer prices shot up in June rose at the second fastest pace in 26 years. This is clearly showing inflation is raging.

In large part, to the due to the precipitous decline that has taken place with the U.S. dollar since 2002. The only way to battle this inflation situation is of course to raise interest rates like Federal Reserve Chairman Paul Volker did during the Carter and Reagan years.

The problem of course is the banking, home and credit crisis.  Today’s Federal Reserve Chairman Bernanke has to focus first on re-establishing stability in the banking system before he can approach the problem of inflation. With the genuine threat of more than a 150 bank collapses at risk according to some very respected banking analysts on Wall Street, Bernanke is focused on preventing a banking panic.

All of this turmoil is creating the kind of volatility can really allow you to profit enormously.  I believe, of course I can’t guarantee, we’re about to see a string of unprecedented profits in my Gold and Energy Options Trader, and that’s the sole reason I am urging you to sign up NOW!

There’s still time to profit on yesterday’s trade.

This failure will hit the U.S. Dollar like a ton of bricks. If not immediately, then in the weeks and months ahead, and that will mean another huge move up in the price of oil. If it happens and we see a huge spike in oil...to the $200 level – it must be shorted. Why?

Simply, Fannie Mae and Freddie Mac are Government Sponsored Entities (GSEs) that will have to be backed by the full faith and credit of the United States Government.  The FDIC and SIPC will also have to be backed by the full faith and credit of the United States Government. Clearly, the budget deficit could explode as the Treasury has to make investors whole. If this happens, then the dollar will see another dramatic fall in value.

Not Just Gold and Energy Options!

A weaker U.S. Dollar may be just one of the forces to drive oil to $200 a barrel. Other possible catalysts may also be weather, supply interruptions caused by terrorism. Regardless the profits are going to be very healthy on both the run up to $200 and then back down. The overall stock market is also going to swing wildly. In a market environment like this, the swings up and down could be fast and dramatic. So I am expanding the service to also in include some potentially profitable stock and stock index options, both puts and calls, that I believe will soon go BERSERK.

Cumulative profits of 221% in the past 11 months 
(while the Dow Jones was down about 15%)

I’ve priced the Gold and Energy Options Trader so inexpensively (just $99 a month or $995 a year ) that the cost of service should be made up by just a few small trades or even one or two trades using 6 to 10 options. Heck, we already have cumulative profits of 221% in the past 11 months (while the Dow Jones was down about 15%)!

This amazing little service has its biggest pay days ahead – BOTH – on the long and short side. But the sooner you jump on board, the more likely your chances to scoop up the profits.

Subscribe immediately, and give my Gold and Energy Options Trader a try. The profit I believe I’m going to pile on for subscribers is just too good to miss.

Subscribe immediately because new trade recommendations will start pouring out over the next 14 to 20 days. Look for my report on this NEXT crisis, and in the meantime, start preparing yourself by loading up on physical gold and platinum.

My $2,500 and $5,000 targets have a good chance of being touched by the time all the shoes stop dropping. Sign up on line right now by clicking here Gold and Energy Options Trader.  By all means, don’t let this opportunity to profit escape you.

Best Wishes,

James DiGeorgia, Editor

Editor Gold & Energy Advisor