September 22. 2008

Alert #27: Up Date on Move Down

Dear Liberty Dollar Supporters:

With all the action in the gold and silver markets of late plus a few confusing statements, I felt it was best to research the Move Down issue and clarify the matter.

The Move Down
The past erratic behavior of silver was the number one reason I based the development of the Liberty Dollar on the 30 day moving average (30DMA). But that was not enough given silver's history for the wild swings that silver is prone to. So the econometrics also included an additional 15 days per each Move Up.

Now the Liberty Dollar faces the possibility of a Move Down. And although I find this almost impossible, as it is a possibility, here is what I published in the Liberty Dollar News dated October 2004:

QUESTION: What is the effect if the 30-day moving average falls below $7.50 after everyone has exchanged $10 LD for $20 LD? I don't see the 30DMA to be a one-way valve and am concerned that it could tread back-and-forth across that $7.50 line, meaning in theory that the LD could keep switching between a $10 and $20 silver base.

ANSWER: It is most unlikely, if not impossible, for silver valued in US dollars to retreat after crossing over its fordable ecometric barrier of "30-day moving average over $7.50 for 30 consecutive calendar days." But as this concern has been raised, please consider the simple logic that with the world "reserve" currency exploding, i.e. inflating at an alarming rate, the cost of silver recovery increasing, and the simple fact that even the slaves in Mexico and Peru's silver mines must be fed or there won't be any new silver, that the cost to get silver out of the ground cannot go down. The US dollar cannot increase in value because it is based on the foul hot air of politicians. And with digital photography quickly replacing silver film, above grade recovery is quickly declining, as photography is the only meaningful source for existing silver. In reality, only after a global monetary collapse, will a new silver price structure evolve and hopefully that will also include a new value backed currency similar to the Liberty Dollar model. Of course, this outcome has yet to be decided by the marketplace. But by that time, many fortunes will have been lost and only a few well-prepared individuals will have profited.

First, there are no one-way valves in a free market. So what will prevent the Liberty Dollar from being whipsawed by a fickle silver market? The ecometric barrier designed into the Liberty Dollar model is three times longer when silver is moving down than on the upside and a dollar less to give the market every advantage to stabilize itself. In other words, the 30-day moving average of silver must stay BELOW $6.50 for 90 consecutive days to warrant any consideration of the currency returning to the $10 Silver Base. Remember, a study of silver is a study in volatility. Silver has a history or "profile" that soars and then falls. That profile and the introduction of the "time factor" was the basis for the ecometric tools that govern the Liberty Dollar - the world's first free market currency. Under no circumstances will the Liberty Dollar "keep switching between a $10 and $20 Silver Base" because "time" is an integral part of the design of the new currency. There is a huge difference between the spot price and the DMA price. That difference is the time factor. A thorough study of the silver market is most valuable in understanding the complexities of the Liberty Dollar model and the value it will bring to the massive monetary events that we are about to experience. Be it an orderly transition or global meltdown, silver will provide the best protection and profit while the Liberty Dollar proves itself to be a superior currency model, if we are to return to "just weights and measure" once again. We chose, therefore we are free.

Currently, the Liberty Dollar is at the $50 Silver Base, so the 30 DMA would have to stay below $15 for 135 (3x45) consecutive calendar days to Move Down to the $20 Silver Base. September 3, 2008, was the first day that the 30DMA was below $15 to $14.96. So the magic date for the Liberty Dollar model to Move Down would be Saturday, February 21, 2009.

Just like the initial Move Up to the $10 Silver Base, this is another huge test of the Liberty Dollar model. As the world's first "free market currency" that operates as a "private voluntary barter currency" (PVBC) it must establish itself in the marketplace and that is exactly what is happening. Stay tuned for more info as the test develops.

Hawaii Dala - Final Offer: Thank you for your kind response to the 2008 Hawaii Dala. Almost all the Limited Numbered Edition is sold out. The Hawaii Dala will continue to be available as my schedule permits.

WOW!!! The $1 Peace Dollar is totally SOLD OUT. I am a bit embarrassed to say that due to a computer error and the flood of orders… it was over sold… and regretfully some orders had to be declined. Thank you for your very strong support for the Peace Dollar. Let's hope it sends a strong message to the idiots in Washington that we don't want any damn war!

Meanwhile, there are a few Peace Dollar Errors available. These Errors consist of the same obverse but the mint erroneously used the Ron Paul reverse die on a few thousand Peace Dollars to produce a genuine error. A few were Hallmarked with the iconic Peace Symbol and even fewer were numbered for a very special Limited Numbered Edition.

Retirement: I am happy to announce my retirement is on schedule for October 1st and I will announce a new CEO for the Liberty Dollar soon.

Kevin Innes long time RCO and supporter from Ashville, NC is adamant that I need some sort of retirement celebration and he is coordinating a " Bernard Roast and Toast"
in Los Angeles, CA October 4th celebrating "Bernard's" time at the helm of the Liberty
Dollar. While I won't be going far and I am resisting this I am going to honor Kevins request and send out this invitation to all of you.

Please RSVP immediately The Party's ON! Whoever would like to join us in celebrating Bernard's time at the helm of the Liberty Dollar is welcome!

Location: Los Angeles, CA (exact location TBA)
Date: Oct. 4
6:00PM to 9:00PM Roast and Toast

Please RSVP as soon as you can to: bernardroastandtoast@gmail.com

Thank you for your continued support. For it is only by banding together and adopting a free and independent currency that provides us with "just weights and measures" will we be able to throw off the yoke of a manipulated monetary/tax system and generate a peaceful and prosperous society.

Bernard von NotHaus
Monetary Architect / Editor