As Long As They’re Giving Away ‘Free’ Money…
On the subject of federal stimulus money, a reader writes: “The government needs to do a better job getting money to people who actually need it rather than giving it to companies/people who are still in business.
“I have yet to see my stimulus check. I’ve been out of work for weeks and have done my taxes for two years going on three. People have bills to pay. And it’s upsetting that some people are getting left out.”
Unemployment’s the worst. Best of luck to our reader… and as long as the government’s giving away “free” money, go to this link to make sure you’re in line for it.
Friday, a reader compared the Cloward-Piven strategy of the 1960s with the House’s $2-trillion HEROES bill. Our next reader goes further back in time for a comparison…
“I would have thought the starvation that occurred in Jamestown in the early 1600s would indicate that collectivism — which is basically what UBI is — doesn’t work.”
About one hundred British volunteers arrived to settle Jamestown for The London Company in 1607. Whatever these indentured settlers produced was shared in common, but historians figure just 5% of the number did the majority of the work.
All to say, it was a long, miserable winter at Jamestown in 1607-08; when spring arrived, just thirty eight of their number survived.
It was Jamestown’s newly-elected president Captain John Smith then who realized they each had to have skin in the game when he famously said: “He who will not work will not eat.” The corollary? The more you work, the more you eat.
Do you think the HEROES bill — if passed — would de-incentivize the unemployed to get back to work? How?
Your Rundown for Wednesday, May 27, 2020
An article at Forbes says: “On March 18, the gold-silver ratio reached an extreme high of 126.43. If you’re a seasoned metals investor, you know the significance of this level: It’s never been reached before.
“One expert is even calling it a 5,000-year high.”
Perhaps you’re not a seasoned investor: the gold-silver ratio indicates how many ounces of silver it takes to buy one ounce of gold. “In the case of the March high, you needed 126.43 ounces of silver to buy one ounce of gold,” Forbes says.
Now? The ratio is about 110-to-1… and that’s still a record high.
Knowing the significance of this precious metals indicator is another thing altogether. For that, we turn to our friends at Hard Assets Alliance. “When the ratio falls, silver is outperforming gold—that can be because it’s falling less than the gold price is falling, but it’s usually because it’s climbing more than gold.
“Check out silver’s gains over gold in the four most recent declines in the ratio.
“Silver outperformed gold anywhere from one to over four times. And that was with the ratio falling from 80 to 40 or 30. With the ratio now over 110, history suggests a snapback rally could be enormous, meaning silver’s outperformance of gold could easily be measured in hundreds of percent.
“The gold/silver ratio may not be done climbing, but the value offered by silver, relative to gold, is hard to overstate.”
Market Rundown for Wednesday, May 27, 2020
The S&P 500 Index futures are up 30 points to 3,024.
Oil is down 2.5% to $33.49 for a barrel of West Texas crude.
Gold’s down $25 per ounce to $1,703.20.
Bitcoin’s up 4% to $9,183.29.
For the Rundown,