Alaska's Future Still at Risk

        The Alaska Permanent Fund was disappointed to report this year that the economic troubles of the Lower-48 led to an 18% drop in the overall value of the Fund, an historic loss for any investment fund.  Almost $7,000,000,000 of Alaska’s money was lost.  Though Fund managers claim to have become experts at “risk management” very little has changed since the financial disaster began in 2008.  The Fund would be decimated again by a second collapse in stock and bond prices.

There are amazingly few investments in the Fund directly related to the future of Alaska.[1]  The Fund has left Alaska for New York, Washington and Los Angeles, just like our last governor did.

FundBuilding

87th Street, New York City.  We own the bottom two floors.

Most independent experts predict another Wall Street crash will occur in 2010 or 2011.  Do Alaskans truly have faith that printing more and more paper money in Washington, D.C. is going to solve the country’s economic problems?  Obviously, the Permanent Fund managers believe so, assuming they are not just asleep at the wheel.   A critical moment in history has arrived, as most Alaskans know.  Big changes for the Fund are quite necessary.

It is well past time for the Permanent Fund to cash out at the Wall Street casino thereby limiting our losses.  The game is rigged anyway. Alaskans are no longer willing to bet on the ability of Washington, D. C. to ever pay its incredible debts from the Welfare/Warfare State, $340,000 from every man, woman and child as of this writing.   When the Washington pyramid game implodes as it must at some point soon, so will all of the Wall Street players and those foolish enough to believe in the endless debt dream until the bitter end.

Alaska needs to invest in its own store of gold.  Gold has been the only reliable world-wide currency over time since the events of the Old Testament.  Gold is a big part of Alaska’s past and its future, whether that is realized now or not.  The Fund does not have a single ounce of gold or even Alaskan gold-mining stocks.

Alaska needs to concentrate in developing its huge stock of natural resources.  It is Alaska’s natural heritage.  The Fund needs to help make that happen more in concert with private industry.  Look at what the State Bank of North Dakota has accomplished for its people.  There is a model for the Alaska Fund.

If the federal government insists on owning most of the real estate in Alaska, it is far better for the Fund to invest in farmland in Montana and Missouri than in a shopping mall and office tower in Houston and in condos in Tampa as it presently does.  Please, please sell the real estate building bubble investments in the Lower-48 now, before their value collapses entirely.  Alaska does not want Wall Street’s toxic derivatives.  Buy something real instead.

No matter what, the Alaska Permanent Fund must be protected from the fantasies and greed of so many in the Lower-48 and here in Alaska.  That has not happened yet.  Now is past time to take the common sense action that is needed.

                                                                                THE EDITOR

[1]  Stocks, bonds and hedge funds make up 97% of Fund investments.  What are called “real assets” in the Fund are, in truth, primarily commercial real estate derivatives from the Lower-48.  Commercial real estate is seen as the next leg down in the financial crisis.  Values have already crashed by 40%.

     The one Fund investment made for Alaska’s future, infrastructure growth, is such a small slice of the Fund no information can be located at the Fund web site.  http://APFC.org  Such investments are not seen as sexy enough by Fund managers.