MoneyandMarkets.com: We're Going to Lose the War In Iraq

It seems blatantly obvious to everyone except those who have the most to lose, according to Dr. Martin Weiss, editor of the Money and Markets investment newsletter.

JUPITER, FL (PRWEB) November 15, 2006 -- In Washington, most politicians now seem vividly aware of the crisis in Iraq. Dr. Martin Weiss, author of The New York Times best-seller, The Ultimate Safe Money Guide and editor of the Money and Markets investment newsletter, thinks that the movers and shakers on Wall Street still seem oblivious to the impact the war could have on investors.

"During my travels in Europe, I noticed that every single newspaper on this side of the Atlantic is headlining the deepening chaos in Iraq," says Dr. Weiss. "Even the sentencing of Saddam on Saturday, heralded in the U.S. as a victory, is likely to deepen the sectarian strife and inflame the anti-American insurgency, according to the Wall Street Journal's Europe edition this morning."

In Dr. Weiss' November 6th report, he highlights a special briefing by the U.S. Central Command declaring that Iraq is "on the brink of chaos." According to Dr. Weiss, it slams home four tough-to-swallow-but-hard-to-dispute conclusions:

• Conclusion #1. Iraq's urban areas are suffering wave after wave of ethnic cleansing, the fundamental driver behind civil war.

• Conclusion #2. Violence in Iraq has reached an all-time high and is spreading geographically.

• Conclusion #3. The massive U.S. effort to hastily recruit and train a large Iraqi army and police force is backfiring.

• Conclusion #4. The pivotal event that sealed the fate of America's enterprise in Iraq was the bombing of the Golden Dome Shiite mosque in Samara.

Why are most investors so complacent?

According to Dr. Weiss, a key reason is that investors have so far been shielded from the economic impact of the war because the U.S. government has failed to raise taxes to pay for it. Instead virtually the entire cost -- a whopping $200 billion or so each year -- is being financed by debt, and nearly all of that money is being borrowed from overseas -- China, Japan and Europe.

What will happen when the war ends in defeat?

• First, worldwide confidence in the U.S. will plunge, prompting foreign investors to sell their U.S. investments. The U.S. dollar and U.S. bonds will plunge.

• Second, due to fears of the Iran-Iraq axis, oil prices will go berserk, likely surpassing the $100-per-barrel level.

• Third, gold will skyrocket, as investors flee the dollar for safety.

Dr. Weiss goes on to warn investors: "Don't be deceived by the false optimism that has overcome Wall Street. Stay the course."

For more information, visit this link:

http://www.moneyandmarkets.com/press.asp?rls_id=481&cat_id=6&

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