Precious Metals Market Timing
Seventy Nine Trillion Dollars

Ron Rosen
Aug 14, 2006

A member of the Congress of the United States of America recently announced that the government of the United States maintains two sets of books. The hidden book of national debts and legal obligations totals seventy nine trillion dollars. He is distributing the book printed but not publicized by the government of the United States of America that shows the seventy-nine trillion dollars in debt and legal obligations. That's $79,000,000,000,000. I suggest that all those subscribers who worry about their precious metal investments stop worrying. It is a monumental tragedy, but there is little we can do but try to protect our families and ourselves.

THE FINANCIAL TIMES
AN EDITORIAL BY JIM COOPER

The writer is a Democratic congressman for Tennessee, serves on the House budget committee and is co-chair of the Blue Dog Coalition, a group of 35 fiscally conservative US representative.

A TRUER MEASURE OF AMERICA'S BALLOONING DEFICIT

The federal government keeps two sets of books, but the Bush administration only wants you to see one of them. There is the highly publicised "President's Budget" issued by the Office of Management and Budget, and the almost-secret "Financial Report of the United States" issued by the Department of Treasury. The budget says that the 2005 US fiscal deficit was Dollars 319bn (Euros 254bn), but the Financial Report claims it is Dollars 760bn. read more.

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The downside pressure of the Gann 30 Year Master Cycle will be lifted by the end of August. At that point the bull move in the metals complex should begin to put on quite a show.

GOLD MONTHLY

The formation on the HUI is a triangle but I think of it as a coiled spring. A coiled spring is what should occur just before a third of a third wave, which is what we are about to experience once this correction is over.

"Third waves are wonders to behold. They are strong and broad, and the trend at this point is unmistakable. Increasingly favorable fundamentals enter the picture as confidence returns. Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series. It follows, of course, that the third wave of a third wave, and so on, will be the most volatile point of strength in any wave sequence."... Elliott Wave Principle

HUI MONTHLY

"The same formation at tops or bottoms or intermediate points at different times indicates the trend of the market. Therefore, when you see the same picture or formation in the market the second and third time, you know what it means and can determine the trend." W. D. Gann

If the price of the dollar remains below the second neck line this month, it should be headed down with a vengeance. Notice the first head and shoulder formation at the top of the chart. The first full month under the second neckline signaled the beginning of a serious drop. The timing of the dollar break down and the bottom in the precious metals complex is lining up to near perfection. Dollar down, precious metals up.

DOLLAR MONTHLY

DOLLAR WEEKLY

SILVER WEEKLY

CRUDE OIL MONTHLY

Stay Well,
Ron Rosen

email: rrosen5@tampabay.rr.com

Tee charts reproduced courtesy of The Delta Society International.

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