The World is on a countdown to a date certain that may be only a few months away, when for the first time ever, the Oil producing nations of the World as a whole, will be unable to satisfy the Global demand for oil as we know it today and as Global growth continues at the near unabated pace of late, by the fall, Global demand for Oil could be as high as 87 Million barrels per day, versus a lean supply of about 85 Million barrels, without any potential supply disruptions, that could send Oil prices soaring to new all time record highs overnight and reports out of Iran this weekend, that they are refusing to accept the deadline to halt their processing of enriched Uranium and ultimate pursuit of Nuclear weapons has profound implications for a World that has already been jolted by weeks of escalating conflict. The fact is the situation in the Middle East is getting worse not better and it is only going to get worse still as terrorists continue to be ever more emboldened by the lack of resolve by the rest of the World to deal with this problem.

But as in World War II, one day they will go too far and it will elicit a response of monumental proportions, that will finally deliver the ultimate message to these despots: Quit or die trying. When your backs are to the wall, such as the situation Israel finds itself in, it will only take a rogue rocket or worse still, some kind of new WMD attack that will aggravate the situation out of control and the consequent response be so overwhelming, that those who seek to wipe Israel off the map, will more likely be the ones to get what they wish for, upon themselves. With the death toll between 9/11, Iraq and the countless terror events that have gone un-punished over the past 30 years, the US itself has to weigh the consequences as to how much more of this they are prepared to tolerate, what is in essence the single worst scourge of our era today, that has been born out of an appeasement and lack of will to deal with such developments, way back in their infancy. And, much of the blame can be laid at what has turned to be the biggest military blunder of the 20th Century, by not removing Saddam Hussein in Gulf War 1 and the enormous cost of that this mistake had led to, that started in earnest on a bright September morning 5 years ago, that became our darkest day of all time. If this unfolding aggression, is not nipped in the bud once and for all and soon, it will only be a matter of time, before much worse befalls us. It seems as if this whole conflict was engineered to get Iran off the front pages, so it could accelerate its reprocessing of enriched Uranium with all possible haste un-noticed, while the UN Security Council and Euro powers try and make up their minds on what to do next.

The plot thickens... Just a most Americans had never heard of UBL until that fateful day, so too most were perplexed by the assassination of Hariri in Lebanon, as to why and who was behind it? But now, the motive and mystery becomes clearer as Hariri in all likelihood stood out as one could do reformer and likely implementer of UN resolution 1559 who could ultimately succeed in disbanding Hezbollah had he lived. And as the stakes continue to escalate, so will the ultimate War: A La WW III. As General Sada, former Air Force Chief of Iraq in Saddam Hussein's regime, who many times has attested to the fact that he personally oversaw shipment of virtually all of Iraq's weapons of mass destruction to Syria in dozens of aircraft before the start of the Iraq war: That any use of these same, especially if Syria were to sponsor their use through one proxy or another, he fears that it would be akin to Syria sowing the seeds of its own destruction and possibly Iran's also. So once again, the Middle East situation is approaching boiling point and any further escalation almost definitely will result in sharply higher prices not only for Oil, but also for Gold and Silver et all, to the point that these developments are virtually inevitable sooner or later.

Precious Metals Still Hold Greatest Future Potential Gold and Silver remain standouts, as potentially the most undervalued assets on Planet Earth. Just as Helicopter Ben's destiny at some time during his reign as Chairman of the Federal Reserve will involve his having to bail out the US Financial System in some form, the first troubling inklings of a sinking US Dollar began to manifest themselves this past week. Technically, the Dollar's prospects look terminally weak and prone to a considerable and accelerating downturn that could unfold in the coming months with possible targets of 83 80 and 75. A breakdown below 80 could potentially set Gold on a course towards $1000, as would $100 Oil prices, but we also believe that just as did happen in 1980, the potential Deja Vu exists and then some, in especially the case of Silver, wherein Silver prices could once again soar exponentially and this time, like Gold could not only eclipse its old highs of $50, but at as stretch could soar to $100 plus on shortages. As we have recounted many times, the World is running out of Gold, Silver and Copper among other resources and the greatest shortages could occur over the coming 18 months to 3 years before major new mine projects can come on line, alleviate what could be high prices. Trade Well From the Desk of Savant