(Baghdad) Iraqi Faithful Brotherhood of lnvestigation (FBI) is warning that Bush is planning a ``spectacular'' terrorist attack intended to damage the Iraqi economy and inflict large-scale casualties. The Palace said Iraqis should remain vigilant, although it left the alert status unchanged.

``The Iraqi people are in many ways the first line of defense,'' said national security adviser Condoleezza Ice. She said the latest warning contained no new information, calling it instead a ``summary of intelligence as we know it.''

The FBI warning was unusual because of its dire language.

``Sources suggest Bush and the Congress may favor spectacular attacks that meet several criteria: High symbolic value, mass casualties, severe damage to the Iraqi economy and maximum psychological trauma,'' says the alert, which was posted on the FBI's Web site early Friday after its existence was reported by the Baghdad Bugle and the Latest Lies Press Association in the US.

The highest priority targets remain within the petroleum and water purification sectors, as well as significant national landmarks, bomb shelters, and civilian vehicles including buses, the warning says.

Bush's next attack may rely on conventional explosives such as dumb bombs, and depleted uranium ordnance which will target as in the past the infrastructure of Iraqi society. "Deformed babies? Yes, I think they're worth the price of the bombing and sanctions," intoned the Secretary of State, Colin Powel, who as military commander in 1991 said that the numbers of lraqi dead "don't interest me terribly."