13 years ago, there were three hypothetical brothers: Tom, Dick and Harry. Their father died and left them each $50,000, with instructions in his will not to spend the inheritance, but to invest in the best way they could so as to have a permanent income. Fortunately, Tom, Dick and Harry had decent jobs and family, so they didn’t need the inheritance anyway, but did as their Dad instructed, in their own ways.
Tom bought 50 U.S. $1,000 Treasury bills @ 4% interest. Dick bought 600 shares J.C Penney stock @ 84, and Harry bought 77 American Gold Eagles @ $648. Why did they invest in these things? Tom Thought T Bills. would be the best investment. After all they’re backed by the ‘full faith and credit of the federal government.’ How can that be a bad investment? Dick grew up shopping at J.C. Penney with his Mom, and since it was a century old department store chain with over 700 retail stores, and showed nice profits, it seemed to be a good investment. Harry had been watching gold, called Colorado Gold, and bought the 77 American Gold Eagles from us.
They decided to cash in their investments last week, and here’s what they got. Tom got $83,250, Dick’s J.C. Penney stock was at a virtual zero (19 cents a share), so he got nothing. A CEO of J.C. Penney destroyed it by deciding not to have any more sales, which shoppers love, but to have just plain old low prices. That did in J.C. Penney, and shows you what an overpaid fool in charge, can do to something. Harry got $139,832. Does it pay to save in gold and silver? I tried this with different ‘T bill’ interest rates, and different stocks, and the results were about the same. Example: If Dick had bought Ford stock in 1990, it was about $14, so he would have bought about 3600 shares, and today, would be worth not $50,000, but $17,000. Harry, in 1990 would have bought 138 Gold Eagles @ $362, and today would have gotten $234,600. In 1990, T bill interest was much higher than now…close to 8%. Today it’s .69%, so Tom would have gotten $160,357.
How’s Your Immune System?
It’s none of my business of course, but this Chinese virus seems to affect not only old, diabetic, overweight, those with medical problems already, and colored people; but those with deficient immune systems. I’m 86, and my immune system is just fine. I NEVER get sick. I’ve never had a flue shot nor the flu, I am normal weight, have normal blood pressure, my PSA is .8, and I have all my hair, teeth and don’t wear glasses. What do I do to make my immune system excellent, even at age 86? I don’t know, and I mention this for your benefit, in case you think it’s luck, good genes, or my practices are wrong. Here they are: First of all, I have never smoked, been drunk, or done drugs of any kind, and take no prescription medicine. I do take, every day, 5000 units of vitamin D, 2000 units of vitamin C, a single multi-vitamin-mineral tablet, a 1200 mg fish oil, and a Co-Q-10 of 50 MG. and a bit of Evan Williams bourbon a couple of times a week. I try to steer clear of beef, even though I love it, but try eat fish and chicken mostly, and lots of salads. 20 years ago, I bought a magnetic seat insert which sits on top of my desk chair, so I have been sitting on magnets for 20 years every time I sit at my desk, which is often. I get a massage every week, and live in an 1887 home with 11 foot high 1st floor ceilings, with my office and desk being on the second floor. I go up and down those 19 steps at least a dozen times a day, which I think keeps my legs and stuff working well. That’s about it, and It’s up to you, but I’ll guarantee you, I’ll never get that damned Chinese virus or any other one, for that matter.
Got Money?
Remember the TV ad which queried “Got Milk?” What I am asking is “Got Money?” Not you, but I think my $3 trillion deficit (printed money) estimate is way off. With well over 30 million out of work, and applying for unemployment benefits, which are $600 a week over their previous salary, many won’t go back to work and why should they? It’s far nicer to collect more and stay home or play. Heaven only knows what the next idiocy the Swamp will conjure up, not counting everyone getting $1750 (where’s mine?), and businesses everywhere going bust, even with the handouts, many never to reopen again. With trillions of dollars in car payments, mortgage payments, and rents behind, many impossible to redeem, what will happen to not only our economy, but the worlds’? Since China lies about everything, I can assume theirs is far worse than ours or the worlds. I shudder to imagine what the eventual outcome will be. From where will the dollars come? The printing press, and of course computer entries, making inflation, the price of everything going up, inescapable. Maybe I should say, “Got Gold?” or “Got Silver?”, because storing surplus assets (Got Any?) in paper stuff with empty promises, eventually will be discovered to have been futile. To show you how deceptive a government can be, during the ‘Great Depression’ of the 1930’s, (are we headed for a worse one?), there were thousands of ‘gold contracts,’ which promised the holder of debt to be paid in gold if worse came to worst. FDR cancelled them by executive order, and those with gold contracts found them to be virtually worthless. Had they held real, physical gold, which may have been impossible, since the contracts were in dollars with a gold backup, they would have remained solvent. The world is in debt by hundreds of trillions of whatever currencies they use. It seems as though all corporations have huge debts. Why? I built a chain of ice cream parlours in Philly 50 years ago, owned the buildings, and paid cash for them after the third one. I became the largest seller of bulk ice cream in Philly in 1970, selling over 100,000 gallons of ice cream a year, and had no debt. Why can’t Kroger, Burger King, Target, Sears, etc. do without debt? Walmart, when Sam Walton was alive, had no debt, and now has $46 billion in debt. Dumb, dumb, dumb. Imagine what stock prices would be if corporations had no debt, with interest accumulating constantly, and paid out of profits.
Don Stott
don@coloradogld.com