Bored of Education’s New Test

That smile you’ll soon enjoy is courtesy of  “Nance”.

NEW HIGH SCHOOL EXIT EXAM
(Passing requires 4 correct answers)

1) How long did the Hundred Years’ War last?
2) Which country makes Panama hats?
3) From which animal do we get cat gut?
4) In which month do Russians celebrate the October Revolution?
5) What is a camel’s hair brush made of?
6) The Canary Islands in the Pacific are named after what animal?
7) What was King George VI’s first name?
8) What color is a purple finch?
9) Where are Chinese gooseberries from?
10) What is the color of the black box in a commercial airplane?

Remember, you need 4 correct answers to pass.
Check your answers below..

1) How long did the Hundred Years War last? 116 years
2) Which country makes Panama hats? Ecuador
3) From which animal do we get cat gut? Sheep and Horses
4) In which month do Russians celebrate the October Revolution? November
5) What is a camel’s hair brush made of? Squirrel fur
6) The Canary Islands in the Pacific are named after what animal? Dogs
7) What was King George VI’s first name? Albert
8) What color is a purple finch? Crimson
9) Where are Chinese gooseberries from? New Zealand
10) What is the color of the black box in a commercial airplane? Orange (of course)

Ron Paul on the New Stimulus Bill

As you know the House has passed HR1, the latest economic stimulus bill.

TX Rep. Ron Paul issued a statement regarding this bill which makes it clear what type of bill it is and some of the reasons why we must oppose it. Here are some highlights:

• “In reality, this bill is just an escalation of a government-created economic mess. As before, a sense of urgency and impending doom is being used to extract mountains of money from Congress with minimal debate….. We are again being promised that its passage will help employment, help homeowners, help the environment, etc. These promises are worthless. This time around especially, Congress should know better than to pass anything of this magnitude without first reading the fine print.”

• “At least $4 billion is allocated to expanding the police state and the war on drugs … and the COPS program, both of which are corrupt and largely ineffective programs.”

• “To help Big Brother keep a better eye on us and our children, $20 billion would go towards health information technology, which would create a national system of electronic medical records without adequate privacy protection.” [To read a warning about this RFID-related threat to privacy check out The New American magazine online in a 2005 edition]

• “$79 billion bails out states that haphazardly expanded their budgets during the bubble years, but refuse to retrench and cut back, as their taxpayers have had to, during recession years.”

• “$200 million expands Americorps. $100 million goes to “faith-and-community” based organizations for social services, which will further insinuate the government into charity and community service.”

• “Of course the bill is rife with central planning projects.”

• “This bill delivers an additional debt burden of $6,700 to every American man, woman and child.”

• “There is a lot of stimulus and growth in this bill – that is, of government. Nothing in this bill stimulates the freedom and prosperity of the American people. Politician-directed spending is never as successful as market-driven investment. Instead of passing this bill, Congress should get out of the way by cutting taxes, cutting spending, and reining in the reckless monetary policy of the Federal Reserve.” 

Thanks to Bob Smith for the above quotes.

Week of Feb 9, 2009

Silver-to-Gold Ratio Ready to Snap Back?
Adam Zeal graphs this ratio and weighs in on where it’s going in The Silver Catapult Is Loaded.

Read the Fine Print
The Stimulus Bill passed by the House the other week has some nagging fine print. The honorable gentleman from Texas is spillin’ the beans: Ron Paul on the New Stimulus Bill.

Landmark Post
What if you had been warned over 3 years ago about the worldwide financial Armageddon currently unfolding?

Warnings & Advice from a Saint, Part 1 (depression and cataclysm)
Warnings & Advice from a Saint, Part 2 (global war of terrible proportions)
Warnings & Advice from a Saint, Part 3 (6 things to do right NOW)
Warnings & Advice from a Saint, Part 4 (best investments)
Warnings & Advice from a Saint, Part 5 (survive outside the city)

Vaporize COMEX
COMEX controls the paper price of gold and silver, and encourages manipulation by gov’t agents as a method of supporting the dollar through suppression of the price of gold and silver. Once COMEX inventories are sufficiently depleted this manipulation will end, freeing the price of precious metals.

Follow the progress:
Chart: COMEX Gold Inventory 
Chart: COMEX Silver Inventory.

 Scott

Stats Say Yes, It’s a *Depression* 
Warnings & Advice from a Saint, Part 1 KEY INFO
– 2009: Worst Still Ahead 
Best Way 2 Control the Masses
– Uncle Sam’s Gold Grab   
Something of Historic Proportions Is Happening 
Deflation Xforming to Inflation Soon

Shadow Powers Plan for 2011 
Sober Prediction for Nov. 2009 
– Market Prediction for 2009-2010 KEY INFO
 
>> How to Rate Your Bank’s Safety <<
History of the Meltdown… (on-going)

Remember what’s in store for us: What’s Coming R Way

The Silver Catapult Is Loaded

Here’s a thought-provoking chart from Adam Zeal: the Gold-to-Silver ratio trend for the last few years.

agauratio

Adam writes:

During the 44 months leading up to the Great Stock Panic of 2008, silver averaged 1/55th the price of gold. This pre-panic 54.9 average was fairly tight too. It wasn’t defined by a few rare extremes, but many years of gentle meandering near the middle of a range between 65 and 45. Despite the countless market-moving gold and silver developments since 2005, this 55 average held nicely.

Incidentally, if you do any deep silver-stock or gold-stock research, the miners will often report equivalent numbers. A primary silver miner will take its byproduct gold production and convert it into silver ounces using the cash equivalent. A primary gold miner will do the opposite, converting its byproduct silver into the cash equivalent of gold ounces. In countless SEC reports I’ve waded through of gold and silver miners, this 55 ratio is usually the number they all use for equivalent calculations.

And over recent years, the variance in the SGR has actually decreased considerably as you can see above in the tightening wedge. All this leads me to believe that an SGR near 55 is far more normal for this bull market than the levels seen during the stock panic. As speculators fled everything including silver, its price plunged far more than gold’s. This drove the SGR to its lowest levels of these entire precious-metals bulls.

It was the plunging stock markets that drove this extreme universal fear. So silver fell to its lowest level relative to gold on November 20th, the very day the S&P 500 swooned to its lowest close of the panic by far.That day, silver at $8.92 was only worth 1/84th of the price of gold at $745! I had never imagined such a low SGR was even possible prior to that panic, and I am certainly not the only silver investor who was surprised by it. The panic blew apart all kinds of previously unassailable historical relationships.

And incredibly such an extreme wasn’t just a single-day anomaly. During the entire panic (September to December), the SGR averaged 75.8. This is just ridiculously low relative to silver’s history with gold. Gold was actually being bid up mid-panic as investors recognized that its performance was really quite good compared to nearly every other asset during the panic. But speculators, quaking in fear, refused to return to silver as readily as the gold investors returned to gold.

For a variety of reasons, I fully expect silver’s historic relationship with gold to normalize. It has existed for so long that a fear bubble in the stock markets lasting a few months shouldn’t be able to sever it forever. Nothing fundamentally changed on the silver or gold mining fronts during the stock panic, so the secular-bull pictures for both metals look similar today as they did back in July. And silver speculators will always be interested in the much larger gold market and watch it for clues on how to bet on silver.

At $900 gold and a normal historical 55 SGR, silver should be trading near $16.36 today. This is 30.8% higher than it was trading in the middle of this week! So even if gold does nothing, a simple mean reversion in the SGR to pre-panic levels implies a silver price much higher than today’s still-depressed levels. Until silver returns closer to its normal range relative to gold, the short-term case for this white metal remains very bullish.

Read the whole article here.