PHI FINANCIAL NEWS

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THE GREAT CRYPTO CRASH OF 2022

Just over a decade ago my brother told me about a new form of currency called “Bitcoin.” I looked into it and decided not to get involved. It looked like a Ponzi scheme to me. A scam. Instead I stuck with silver, which soon crashed. I should have bought Bitcoin when I had the chance.

If someone had framed crypto currency as a means to escape the debt dollar, I might have been more interested. On the other hand, there is no escape from the debt dollar. Bitcoin remains tied to King Dollar. Now we’re seeing the stock market crash because the Fed is raising interest rates to combat the inflation it created. Cryptos began crashing, too.

Crypto currency, like gold and silver, are inextricably tied to the dreadful debt dollar that enslaves us all. When people ask what Bitcoin is worth today, they mean what it is worth in dollars. King dollar still rules. There was never an escape to an alternate currency. That was all wishful thinking.One could have bought precious metals instead of Bitcoin, but everyone knows that gold and silver prices are rigged.

Bitcoin prices were harder to rig, hence the moonshot rise. Still, gold and silver remain REAL money according to our Constitution. The dollar used to represent precious metal and paper currency could be cashed in for the ‘real’ thing, gold and silver. This was not good enough for the central bankers who were given control of our money. They wanted to print up endless fiat paper to enrich themselves and impoverish the rest of us by means of debt and inflation.

Bitcoin went up because ‘greater fools’ kept buying it. Now that prices are collapsing we may never see true market value because Bitcoin is backed by nothing. It certainly isn’t anything physical. It’s a mathematical concept. It’s coding on a computer bank. Sure, some will say Bitcoin represents the expensive electricity used to ‘mine’ the coins and that’s what gives it value, but naturally Bitcoin would have to be converted into debt dollars first to buy that electricity back and since many of the coins are now underwater, it’s a losing proposition.

The biggest crypto crash was LUNA, which is related to the ‘stable coin’ family. It was anything but stable. It crashed 97 percent on May 11 due to a disaster with its algorithms. It’s too complex for me to understand, but it was recently as high as $120 per token. As of this writing it’s worth .004 cents.

There’s nothing to stop other cryptos from repeating the same pattern of collapse. There is no safety net. I recommend sticking with gold and silver, even if they’re boring because the price remains suppressed by the central bankers. At least precious metal is a good store of value. Gold will never go to zero.

It might be better to give up on speculating and currencies altogether. Instead, buy garden seeds, ammo, storable food, small bottles of liquor, and cigarettes. Those items might end up being more desirable for trading purposes than theoretical money, debt paper, and shiny discs of metal.

— Ben Garrison
https://grrrgraphics.com/

 

Larry Ramer is in agreement.
We also agreed on selling, but he waited a little longer than I did.
He mentions a mid-term angle I had not yet considered in the following article.



DWACW warrants are down to $10.59 at the moment...


Not recommending to anyone, just reporting.
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An DWACW Update​

I have made smart moves and not smart moves selling too early not making as much as I could have and buying too early paying more than I should have. But, all and all, considering use of the first profit, I remain in DWACW shares at $10.50. I consider this to be a good position and one that was available to anyone at $11.46 per share today, a near all time low. Historically to date, as seen in the chart below, this would be a good position if a person was seeking short term profit. (See later why I believe upward momentum is likely from here in short term.)

DWACW Historical Chart
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In considering the long term possibilites of redeeming warrants for shares of common stock, below is the historical chart for DWAC.

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If one is planning on waiting to sell after the merger when DWACW warrants are eligible to redeemed for full DWAC/TMTG shares at $11.50 plus cost of warrant ($10.50 + 11.50 = $22 in my case, or $22.96 at today's valuation), considering historical values in the DWAC chart, it can be seen that the stock price has never been below $35.71 and has been all the way up to near $100. If the stock were to be valued at the current all time low after merger, that would still result in a $13.48 profit per share when the warrants were redeemed.

Why I believe the value will increase soon...

According to this video today and recent others from Devin Nunes:



So, we know that in a couple of weeks the Truth Social web app will become available opening Truth up to everyone on the web, not just Apple users in America. If you notice in the high spikes in the DWAC chart... they all occurred at times when events such as the opening of the original Beta trial of Truth, opening of Truth to all Apple users, even just Trump posting on Truth. The foregoing events all triggered waves of buying and rising values. It is my opinion the upcoming opening of the web app to everyone and surge of new users discussed in the video will more than likely have that same or even higher effect on value.

However, if one is waiting to redeem the warants for common stock after the merger, the current market value of the warrant has litlle bearing. Whatever the monetary value of warrants, however that value fluctuates, the warrant may be relinquished for the opportunity to purchase common shares at $11.50. The profit being the value at that time minus your personal costs. Though certainly, a higher warrant value denotes a higher stock value. The warrant value and the stock value move hand in hand.

There are also the factors for long term consideration that the Truth Social site will be only one part of the media acquisitions TMTG are to eventually incorporate. Cable News station, Streaming Service, etc. are planned to follow and we know Trump has previously been a master of successful cable programming.

In closing, it should also be noted when considering current values the Nadaq composite has been in free fall as of late. Not just TMTG. Other factors are at play.

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Nunes mentions going through the merger process so he can't discuss metrics.
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This is truely maddening! Nowhere else have I seen this reported at any time! The media has been worrying investors with this possible SEC Investigation for nearly as long as the stock has been public...

Now today, a highlighted paragraph from this article:
Another issue regarding the SEC; it was critical to note that there was no mention of any SEC investigation. If there was a SEC investigation, it would have had to be disclosed in the 10-K. At this point, it seems all the media attention last year about a SEC investigation was just “much to do about nothing”.

The full article:

DWAC Finally Filed Their 10-K: This Is What We Learned
Apr. 14, 2022 5:53 AM ETDigital World Acquisition Corp. (DWAC), DWACU, DWACW41 Comments6 Likes
Summary

• DWAC filed their 10-K on April 13.
• They are still expecting to complete the merger with Trump's media company before September 20, 2022.
• No mention of any SEC investigation in 10-K.
• DWAC had a 2021 loss of $1,391,593, which, of course, does not include Trump's media company.
• Still waiting for S-4 filing.

Digital World Acquisition Corp. (NASDAQ:DWAC) finally filed their 10-K report on April 13 after an almost two week delay. There are some interesting items in the filing, but many investors, including myself, were disappointed that any specific updates regarding the merger with former President Trump’s media company, Trump Media & Technology Group, were not included. Because the S-4 filing is taking so long, DWAC is burning cash and may need a loan from their SPAC sponsor. There does not seem to be a SEC investigation that the media made a major issue about last year. There was not enough new information in the filing to give an updated recommendation. I, therefore, continue to have a neutral/hold for DWAC.

Potential Cash Issue
As can be seen by the December 31, 2021 balance sheet, DWAC has a cash problem. Their cash ending on September 30, 2021 was $1,494,632 and it declined to $327,731 on December 31, 2021. Total current liabilities increased from $214,117 to $683,535. It is interesting to note that they are accruing their expenses instead of recording them as accounts payable, which means various lawyers and others have not actually billed DWAC yet. These figures were as of December 31, 2021 and I would expect that DWAC has burned even more cash and accrued even more expenses in the last 3-4 months.

DWAC December 31, 2021 Balance Sheet


DWAC Balance Sheet December 31,2021 (sec.gov)

It was disclosed in the 10-K that the SPAC sponsor “committed to provide loans of up to an aggregate of $1,000,000 to the Company through September 8, 2022, which loans will be non-interest bearing, unsecured and will be payable upon the consummation of a business combination”. This may seem like cheap financing, but it is absolutely not cheap because the loan “may be convertible into units, at a price of $10.00 per unit, at the option of the lender”. So a $1.0 million loan could result in the lender/SPAC sponsor getting 100,000 DWACU units (1 DWAC share + 1/2 DWACW warrant), which are currently worth about $5.7 million for payment of the $1.0 million loan. (This is an example, in my opinion, of why the SEC is looking into SPAC deals.)

According to the 10-K: “We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business”, but the 10-K also states up to $1.5 million of loans can be converted into units at $10.00. It further states “Management believes that the Company has sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a business combination or one year from this filing”. Are we to assume that the “additional” would mean funds besides the SPAC sponsor’s loan or does the "additional" include the sponsor's potential loan? These statements are rather confusing.

We are not talking about a lot of money, but not having sufficient cash/liquidity is an issue this merger does not need to encounter. DWAC had a loss in 2021 of $1,391,593, which was primarily formation and operating expenses. They can’t draw on the money in the $293.26 million in the trust account-the cash has to remain in the trust account. The cash spent so far is only regarding DWAC-it is not being used to fund Trump. Trump and his partners have to currently fund TMTG and their Truth Social.

Timetable
First, there still was no specific mention of their S-4, except they keep stating “please see the Form S-4 which the Company intends to file after the filing of this Report”. There has been a lot of confusion about their S-4 filing. I would have thought that if DWAC already filed their S-4 on a confidential basis this information about the confidential S-4 filing would be contained in their 10-K.

A SPAC that is less than one year old can file a confidential S-4 with the SEC under Rule 406 §230.406. During a forum in March, Patrick Orlando talked about this issue, but he did not actually state that DWAC had used this Rule to file a confidential S-4. He only stated, “I mean, everything’s possible”.

Another issue regarding the SEC; it was critical to note that there was no mention of any SEC investigation. If there was a SEC investigation, it would have had to be disclosed in the 10-K. At this point, it seems all the media attention last year about a SEC investigation was just “much to do about nothing”.

Second, they still “anticipate that the TMTG Business Combination will be consummated on or before the Outside Date”, which is September 20, 2022. That date is subject to extension and they would have to solicit shareholder approval before the merger becomes effective. So the clock keeps ticking.

Third, the problem is that if the merger deal with Trump isn’t completed, DWAC would have to immediately pivot to merger with another company. DWAC would have until September 8, 2022, which can be extended up to March 8, 2023 to complete a different merger deal. That does not leave much time to find and negotiate a deal, followed by waiting for their S-4 to become effective. Then DWAC shareholders would also have vote. So the longer the wait for S-4 filing for the Trump merger deal, the less likely there will be any deal, which could mean the eventual liquidation of DWAC at about $10 per share.

Conclusion
This article was only intended to cover their 10-K filing and was not intended to cover other recent events, such as reports that Fox News was joining Truth Social. There was a "relief" rally in DWAC stock because of two critical issues. First, that the actual 10-K was finally filed after a delay. Second, that there was no bad news contained in the report.

 

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“JUST A FLY IN THE OINTMENT. THE MONKEY IN THE WRENCH. THE PAIN IN THE ASS.”

The New World Order steals Russia’s wealth while inventing new sanctions. Sanctions that Joe Biden said don’t work.One news event you won’t often hear the war drum-banging mainstream media mention is Putin tying the Russian Ruble to gold.

This is a direct challenge to ‘King Dollar,’ which has been the world’s reserve currency for far too long. Other leaders have tried to avoid the dollar. Iraq went to the Euro in exchange for their oil. Soon after, the US invaded and Saddam Hussein was murdered.

Libya’s Muammar Gaddafi wanted a gold-based currency. Soon after, the US bombed his country and Gaddafi was murdered. Now we’re seeing how the US would love a ‘regime change’ in Russia as Biden put it, but unlike bullying smaller countries, the US knows any direct attempt to take Putin out could lead to nuclear war.

Putin plays 3-D chess. Biden can’t even play checkers because he’s too busy tracking down his jello cup.

The Democrats who carry out the game plan for the New World Order oligarchs know Biden is a blithering mess and that interferes with their plans. After being shunned by Obama, I don’t expect Biden to finish out his term.

By tying his country’s currency to gold, Putin has tossed a big monkey wrench into the turning gears of the globalists. If India and China go along with Russia, we could see some real fireworks. The New World Order needs the dollar to complete their plans to enslave the world by means of a digital dollar and a social credit system.

Putin doesn’t want this. Like the recently reelected Viktor Orban in Hungary, Vladimir Putin is a nationalist who has the best interests of his own country at heart. By contrast, Biden hates America.

Why else would he shut down domestic oil, leave our borders wide open, bring about massive inflation, and pepper us with dictatorial (and useless) Covid mandates? We need to stay out of Ukraine and concentrate on fixing our own country.

A return to a gold-based dollar would be a start, but how much gold is in Fort Knox? Probably very little. There has been no audit since the late 1950s. Whatever gold was there has most likely been replaced with gold-sprayed tungsten, a metal that weighs the same as gold.

Since we allowed private globalist bankers to take over our money system in 1913 and then systematically rob us blind, the US has been in the steady decline. We’ve lost too many lives through useless wars, had the fruits of our labor and our freedom stolen from us, and now they want to steal what makes human beings human by means of their woke nihilism.

The Great Reset is a launch of globalist neo-serfdom where citizens have no freedom.

We are to shut up and do as we’re told while pedophiles at the top insist we celebrate the never-ending ‘trans’ mockery. We will own nothing and eat bugs while the oligarchs own and control everything.

Biden has already mumbled about how he leads the New World Order. Putin is one of the few who is standing up against those insane plans. It’s not that I admire Putin the dictator.

I simply despise our own dictators much more.

— Ben Garrison
https://grrrgraphics.com/

 

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