Archive for the ‘Financial War Room’ Category

99.9%  SILVER COINS
Cannot Be Used in Everyday Exchange
BECAUSE they are TOO SOFT !
They are MEDALLIONS aka Collectors Items.

REAL “HARD” MONEY

For Hundreds of Years since around the late 1400s, the standard in Silver Coinage was set by the THALER (which the Brits & British Colonists called “Dollars”).  An excellent discussion of the renaissance of silver coin minting in Europe is Professor Antal Fekete’s article:

ARCHITECTURE FOR A NEW  WORLD FINANCIAL SYSTEM

To make Thalers hard enough for everyday exchange and use at regional Medieval Trade Fairs required that the silver be alloyed with enough copper.  The Thalers included approximately 7% copper. This Thaler Standard became THE standard (eg: even the Brits’ “Sterling” standard was close to the Thaler at 92.5% Silver and 7.5% Copper) for many centuries.  Then the Americans raised the bar in “Hardness” by adopting a 90% Silver and 10% Copper alloy standard in 1792.  To this day in the Silver Industry “Coin Metal” means a 90-10 alloy.  Below is a chart that amongst other things presents the Provenance of the US Dollar:

To understand what a US Dollar IS!, may I recommend the world expert on the subject – Dr. Edwin Vieira and his essay on the topic or his magnum opus Pieces of Eight.

When the US Federal Government Mint began minting gold and silver coins again in 1985 they knowingly minted coins that COULD NOT be used in every day exchange. Instead of following the US Coin standard (90-10 alloy) set by the Founding Fathers that had stayed the same from 1792 to 1964 they minted 99.9% pure medallions. All private mints fell right in line world wide. After all WHO wouldn’t want 99.9% pure coins? These coins are beautiful “Collectors Items” BUT they like the Dodo Bird will never fly high as mediums of exchange.

So what is a Silver Investor to do ?
Stay Tuned for More

But until then remember the Fibonacci Financial Mantra:
CAUTION:  There are a wide variety of ways to protect your assets and profit from the tidal changes taking place in the world economy ranging from the very conservative to the highly speculative.

But you need active professional guidance – Contact us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from our blog entries.  These blog entries are EDUCATIONAL  and are an introduction to our services and DO NOT constitute investment advice.

Don’t You Wish

that this was the

Equity Curve of YOUR 401K ?

Everything is going UP UP and Away!

Gold is Up, Silver is Up, Oil is Up, Stocks are Up.
What Next?

Listen to this Tech|Ticker interview with Bob Prechter
Titled: Yes, Robert Prechter Is Still Worried About Deflation

One of several markets we are watching to help answer

the Inflation vs Deflation Outcome

of the current financial crisis is Silver !

In addition to Silver, we are watching to see which way the Stock Market and the CRB index break (see Stock Market Head and Shoulders formation from last weeks blog entry).

But remember the following Fibonacci Financial Mantra :

There are a wide variety of ways to protect your assets and profit from this tidal change ranging from the very conservative to the highly speculative.

BUT you need active guidance – Contact Us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from our blog entries.  These are EDUCATIONAL and an introduction to our services and DO NOT constitute investment advice.

Dear Reader,

The Markets have been in a Holding Pattern since late last year.

That’s about to change DRAMATICALLY.

The Stock Market as exemplified by the Dow Jones Industrial Average  (aka: the D.J.I.A.) has been stuck in a trading range roughly between 10,000- and 11,000+.

For the last year the D.J.I.A. trading range market has been forming a potentially OMINOUS Head and Shoulders Top.  This is just a potential until the neck line is broken decisively!

Remember Summer School over a year ago when we first reviewed the Head and Shoulders Formation? If you need a refresher course,

Go here : http://www.fibonaccifinancial.com/financialwarroom/if-bonzo-is-buying-then-you-should-be-selling/

When this neck line in the D.J.I.A. is broken decisively,

I believe we will be entering  a very dangerous period of HYPER-DEFLATION.

The Federal Government’s Plunge Protection Team ( aka the PPT) have been very busy!  With the X-Ray vision provided by the COT (Commitment Of Traders) reports we can see that each time the D.J.I.A. is in danger of breaking down, the PPT  jumps in with tones of money and buys the market. If they loose this game (which I suspect they will a la King Canute) the breaking of the neck line will be even more ominous and meaningful. If all the Fed’s horses (fiat money) and all the Fed’s men (Ivy League Whiz Kids – full of hubris) can support the market – there’s a hard rain coming…..

This has real potential of making the Great Depression of the 1930s look like a dress rehearsal. For some interesting insight into the potential magnitude of this HyperDeflation buy The Great Wave by David Hackett Fisher and read the last chapter. (FYI David is not an economist but he is a Pulitzer Prize winning author/historian).

Go here to Amazon.com and buy it!

http://www.amazon.com/Great-Wave-Revolutions-Rhythm-History/dp/019512121X/ref=sr_1_1?s=books&ie=UTF8&qid=1283634769&sr=1-1

To sum up – It’s time to WAKE UP again. Go to Safety! Don’t wait till the D.J.I.A. breaks the Neck Line at approx. 9500

You may still have a couple of months (till after the election), a couple of weeks or only a couple of days !

DON’T WAIT –  ACT NOW !

Have You Missed My Posts ?

If you have missed my posts while I was on Sabbatical and want me to post more often again

- Please drop me a line.

Are Your Assets Allocated Properly ?

And REMEMBER

There are a wide variety of ways to protect your assets and profit from this tidal change ranging from the very conservative to the highly speculative.

BUT you need active guidance – Contact Us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from my blog entries.  These are EDUCATIONAL and an introduction to my services and DO NOT constitute investment advice.

Vindication ?

The Wall Street Journal

Announces

The Worst Decade For Stocks EVER!

“The U.S. stock market is wrapping up what is likely to be its worst decade ever.

In nearly 200 years of recorded stock-market history, no calendar decade has seen such a dismal performance as the 2000s.

Investors would have been better off investing in pretty much anything else, from bonds to gold or even just stuffing money under a mattress. Since the end of 1999, stocks traded on the New York Stock Exchange have lost an average of 0.5% a year thanks to the twin bear markets this decade.”  TOM LAURICELLA WSJ digital December 20,2009.

I started aggressively moving clients out of Stocks and into T-Bills during the 2000-2001 market blow-off and then again in late 2007.

This appeared foolish to my clients, family and friends many times during the last nine years.

But my evolving

Asset Allocation Model

has kept my client’s investments and retirement plan assets SAFE.

BUT NOW

“Danger Will Robinson, Danger!”

The Worst Is Yet To Come!

So Stay Tuned.

Remember Gentle Reader – the best strategy is still:

Go to Cash NOW = Run don’t Walk!

The Commercials have been selling the Stock Indexes for 3 weeks now.  There has been a normal Bear Market retracement of the first leg down in this Bear Market in percentage & Elliot Wave terms.  Now is the time to go to cash.  The next leg down in this Bear Market will be devastating.  The Dow Jones Industrial Average will most likely go well below 6500.

The COT readings in the precious metals and daily sentiment are at a bullish extremes also.  Better prices will be forth coming.  We will add to our core holdings at much lower prices.

Where should you put your cash?  Contact us for tactics.

AGAIN

There are a wide variety of ways to participate in this opportunity ranging from the very conservative to the highly speculative.

BUT you need active guidance – Contact Us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from my blog entries.  These are an introduction to my services and do not constitute investment advice.

Recently I we reviewed the classic head and shoulders top formation.  The Dow had formed one and sucked a lot of analysts into recommending selling or shorts.  But we weren’t fooled because it never broke below the neckline by a decisive 3%.  What I also didn’t tell you though was that the Commercials had been buying!  I didn’t want to give away my hand. .

But we have been waiting months for this bear market rally to resolve.  We are getting closer.  As the Commercials unload their positions at the end of this rally, it will probably mark the last opportunity to sell stocks at reasonable prices for several years.  The decline from the top of this rally will be absolutely devastating to most investors.

Remember what I said in earlier blog posts – it will be hard to sell at the end of this bear market rally because all the talking heads and headlines will be positive about the Obama recovery etc. etc.  It is almost impossible to fight the herd!

AGAIN

There are a wide variety of ways to participate in this opportunity ranging from the very conservative to the highly speculative.

BUT you need active guidance – Contact Us at Fibonacci Financial.

Do not get the idea that you can trade or make investment decisions from my blog entries.  These are an introduction to my services and do not constitute investment advice.

Remember Lexington and Concord

The Right to Keep and Bear Arms is a Responsibility

Please follow my logic.  If the US Constitution acknowledges each US citizen’s right to keep and bear arms, is it not our patriotic duty and responsibility to own and know how to use arms in our own defense and in defense of our families, friends and fellow humans.  This  explicitly protected unalienable right acknowledges that we each, as citizens,  are the last line of defense against tyranny.  If we default on this responsibility and leave it up to our neighbor, what can we say of our level of personal responsibility to ourselves, our family and friends and community.

The Responsibility to Keep and Bear Arms is an Ancient Heritage

Where did the founding fathers get this idea of the right to keep and bear arms.  Much of our Anglo American (sorry dear reader – we were British colonies) legal patrimony is explained in Sir William Blackstone’s inimitable “Commentaries on the Law”.

Please Click on This to Read the Original!

You will probably need to zoom at 100% to read it.

This is a facsimile – most of the “S”s look like “F”s.

Blackstone Arms

As extracted from the above :

This comes from Blackstone’s discussion of  “The Rights of Persons”.

“And we have seen that these rights consist, primarily, in the free enjoyment of personal security, of personal liberty, and of private property.  So long as these remain inviolate, the subject is perfectly free; for every species of compulsive tyranny and oppresion must act in opposition to one or the other of these rights, having no other object upon which it can possibly be employed.  To preserve these from violation, it is necessary that the constitution of parliaments be supported in it’s full vigor; and limits certainly known, be set to the royal perogotive.  And lastly, to vindicate these rights, when actually violated or attacked, the subjects of England are entitled,

1. In the first place, to the regular administration and free course of justice in the courts of law;

2. Next to the right of petitioning the king and parliament for redress of grievances;

3. And lastly to the right of having and using arms for self-preservation and defense.

And all these rights and liberties it is our birthright to enjoy entire; unless where the laws of our country have laid them under necessary restraints.  Restraints in themselves so gentle and moderate, as will appear upon farther enquiry, that no man of sense or probity would wish to see them slackened……. I shall close my remarks upon it with the expiring wish of the famous father Paul to his country, “Esto Perpetua!”  William Blackstone, ESQ. “Commentaries on the Laws of England” Book the First, pages 140 and 141.

Why read Blackstone?

“The man who is ignorant of that which happened before he was born will always remain a boy.” – Tacitus, Roman historian.

And I join my voice to King Leonides, Blackstone, the founding fathers:  “Esto Perpetua” and “Molon Labe”.

Go Out and Invest in a Gun

You are the last line of defense for our liberties.  Go out and buy a gun and learn how to use it.  Oh, and reading between the lines in Blackstone, do it safely and responsibly – use common sense.   Not as those twits back in DC would define common sense, but rather as a “man [woman] of sense or probity” would define it.  Remember, that gun you own is the last line of defense against tyranny!