The Omega Letter Intelligence Digest Vol: 59 Issue: 10 - Thursday, August 10, 2006
Terror Threat Level RED  British police announced this morning that they had broken up what they described as a major terror plot to commit mass murder aboard US-bound international flights. Details are sketchy, but the plot involved the use of a new weapon -- liquid explosives and detonators disguised as electronic devices like cell phones and laptops. This is not only a particularly insidious plot, it will likely add a number of new [and permanent] changes to the types of things passengers will be permitted to bring with them.  Passengers will not be allowed any carry-on luggage. No liquids will be permitted to be brought onboard. Neither will passengers be allowed to carry on cell phones, laptop computers, 'Crackberries', radios, iPods, pocket calculators, etc. Passengers with babies will not be able to bring baby formula without first tasting the formula in front of airport inspectors.  When one considers what effect that will have on all kinds of travel, but especially business travel, the potential is staggering.  European stock markets have already plunged with the news, as investors consider the ramifications of what this latest plot might mean. The US markets have not yet opened, but the news is expected to have a similar effect on the Dow.  The Department of Homeland Security has raised the terror threat level to red -- the highest level possible -- for all international travel. This is the first time in history that the terror threat level has ever been raised to Level Red. Domestic air traffic has also been raised to Level Orange.  Here where we are, in the Chicago area, Chicago's O'Hare International is banning on all liquids and gels--including toothpaste--from flights and gates. The orange alert level means that ALL bags will be screened. The delays are expected to be enormous.  At a news conference at O'Hare International Airport early today, Chicago aviation commissioner Nuria Fernandez urged passengers to arrive early for flights and to consider not bringing carry on luggage. "Beginning this morning, passengers traveling through Chicago's airports should expect to see immediate changes in airport operations," Fernandez said. "These changes include increased canine units, Chicago police officers at every checkpoint, and generally, a heightened local and federal law enforcement presence throughout the terminals."  Alert levels have been raised at a number of US airports so far, at Logan in Boston, at New York's airports, in New Hampshire, at LAX, and, before the day is out, will probably affect every airport and air carrier in the country. This is the 'real deal,' say Homeland Security officials. Passengers may have prescription medication labeled with a name that matches the name on the passenger's ticket, insulin, or other essential non-prescription medications. Beverages purchased beyond the security checkpoints must be consumed before boarding the aircraft.  Travelers should also anticipate additional security measures within the airport and at screening checkpoints, according to the Transportation Security Administration.  Some measures will not be visible to the public. The Federal Air Marshals Service (FAMS) will provide expanded mission coverage for flights from the United Kingdom to the United States. Others will be too visible. Already, Massachusetts governor Mitt Romney has ordered the National Guard into service to provide additional security. It is reasonable to expect that other state governors will follow suit.  The U.S. believes the arrests of suspects in a bomb plot in London have "significantly disrupted the threat." But Homeland Security Secretary Michael Chertoff said, the U.S. can't be sure that the threat has been "completely thwarted." Assessment:  There is an old saying to the effect that 'every cloud has a silver lining'. Let's seize on whatever we can grab.  It is expected that the news of the terror plot will have a significant effect on air travel. With the grounding of a number of aircraft and the cancellation of some international and domestic flights, at least it means we'll be conserving on fuel.  Ok. That concludes the 'positive thinking' portion of this morning's report. Now back to scaring our pants off.  The dollar dropped like a stone as investors dumped their US dollar holdings -- that's not a good sign. This has already begun to hurt, and all the signs say this is gonna hurt us bad. Even my tongue-in-cheek observation about conserving fuel is exactly that. Tongue in cheek. Gas prices are certain to rise as the oil companies and their investors look for ways to capitalize on America's misfortune.  While Homeland Security is hesitant to identify it as an Islamic plot so far, it is. And oil is the currency of the Islamic world.  This is, as I noted, gonna hurt us. Bad. All that remains to be seen is how bad it's gonna hurt. It's past time to pray. And pray hard. Archives of past issues of The Omega Letter Intelligence Digest plus many other Omega Letter member features can be found at: www.omegaletter.com