I have finished reading a 750 page book titled “Conspiracy of Fools,” and it details how, in far less than a decade, a pipeline company, Kinder-Morgen, became a huge corporation, which defrauded, lied, conspired, or whatever name you wish, stole hundreds of millions from investors, banks, corporations, entities, and the nouns escape me.
Enron collapsed twenty years ago, and when it did, it generated headlines around the world, and which collapse cost marriages, families, trust, corporations, businesses, etc. by the millions. I remember it, but not being involved in stocks, or paper investments, I sort of shrugged my shoulders at it, but after reading this book and the literally huge praises it deservedly received, I now realize just how easy it is for get-rich-quick dreams, to become nightmares to hopefuls and investors.
Most of Enron’s manipulators, were middle or early age, and most had impressive degrees from Harvard and other respectable colleges and universities. They falsely created and partook of unbelievable luxury, fame and respect, while it lasted, and this included Presidents George Bush and Bill Clinton. The executives were invited to the White House, and the utmost respect and admiration was freely given, at least till it all collapsed.
As each scheme and dummy corporation hatched and was enabled, I could not believe it. It was economic suicide, but crooked bookkeeping by Arthur Anderson made it all seems so miraculous, while it lasted. It made no sense at all, but these young economics geniuses with degrees from reputable and famous educational institutions, continually did it, till it all came down like an avalanche. I suppose a degree in economics, is the password for genius or smarts?
Nowhere in the Enron collapse, were gold or silver mentioned in the book, nor were these metals involved in the various corporate scams. It was all paper and ink promises and lies, which fooled most of the economic community. I know of two people who worked at or for Enron, and one, seeing it to be a total fraud, sold their stock at its peak and became a millionaire. If you wish to read it, it can be found very cheap with postage paid. I think I paid but a few dollars for mine, delivered to my door!
Enron, Eastman Kodak, Blockbuster, Sears Roebuck, Montgomery Ward. Packard, Studebaker, et al, can be joined by dozens more I am certain, and all demised and cost investors hundreds of millions, and probably billions. Promises made by promoters are endless, and I well remember an outfit about 30 years ago, called “Presley,” as I remember its name, who claimed to be able to separate the oxygen from hydrogen in water, cheaply. Just imagine it! Virtually free hydrogen, which could power cars, trucks, and electricity generators virtually free, with no pollution. Presley stock wen to zero when it was found to be a fraud. And the 39 year old woman, who is now finally in jail, which promised to separate the good stuff from the bad in blood, or something like that anyway. She sold millions of shares I am certain, and they are now zero. Has anyone recently invented a perpetual motion machine? Millions have tried, and I am certain many bought shares in the faux inventions.
I have tried to think of how gold and silver, other than typical ups and downs of any market, have hurt anyone who has invested in them. No one has ever been able to explain the sudden upsurge in silver about ten years ago, but I think it was from the futures market. Precious metals are not get-rich-schemes, but are merely a payment free insurance against currency debasements, which are universal happenings throughout history. Argentina now has 100% inflation.
At my age, I have recently begun to appreciate my Dad’s business ability. He had his own drug store for 36 years, and he told me once, that he made about $10,000 a year from it. Today, a $10,000 a year income can be achieved from a welfare handout, but we had a wonderful six-bedroom home which I grew up in, and for which he paid $3300 in 1935. We bought a 40 acre farm, which had two barns, and a wonderful home for $9500, and today would be worth millions I am certain, as it is but 45 miles from D.C. He bought three new cars, and a John Deere tractor and all attachments for the farm, and we lived very well. At the drug store, which I grew up in, we sold a tin of Bayer aspirin for a dime, and a Coke at the marble soda fountain was a nickel, as were Hershey bars. Streetcars ran by the store, and the fare was a dime. I remember the occasional phone call.
“Kenesaw Pharmacy.”
“Is your store on a streetcar line?”
“Yes.”
“Well, you’d better get it off, there’s a streetcar coming.”
Gasoline was a quarter a gallon, and a quart of Quaker State Oil was fifty cents. Translated into today’s value dollars, he was making over $200,000 a year, and we had a great life. Inflation is universal, and you need to protect yourself.
-Don Stott, don@coloradogold.com 303-249-4646