X-Message-Number: 443
From att!watson.ibm.com!metzger Thu Sep 12 11:20:14 0400 1991
From:  (Perry E. Metzger)
Subject: Alcor's finances

I have a small question on Alcor's finances.

I've seen it mentioned in several places that Alcor invests in such
"safe" investments as US Treasury Bonds. Many of us, however, know
perfectly well that such instruments are not "safe" over a long term
of say, a century, and that given the current situation with the
federal debt T-Bills and T-Bonds might not even be safe into the
middle of this decade!

Given that, I ask:

1) Is it true that Alcor's primary investments are in US Government
   debt instruments?

2) If so, are there any plans to diversify the portfolio to accomodate
   possible near term financial disasters in the US? After all, we are
   talking about an enterprise who's assets must last for at least 50
   years and possibly centuries if we are grossly wrong about when
   nanotech shows up on the scene. In either case, Alcor should have a
   very diverse portfolio to accomodate a range of possible natural
   and financial disasters, as well as other problems (like wars) that
   might arise.

BTW, for those that think that T-Bills are safe, I suggest you ask
yourself the following question: at current rates of deficit, is there
any reason to expect the US Government is ever going to pay most of
them back in an "honest" manner? (Dishonest manners include
hyperinflating the currency).

Perry Metzger

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