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Parents call foul: Basketball pre-game playlist broadcasts vulgar lyrics for kids in Anchorage

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Caution: This story contains vulgar language.

Friday night’s game between West Valley High School and Service High School, played at Dimond High Schools gymnasium, started out with the usual warmups.

According to the Alaska School Activities Association and the National Federation of High School rules, dunking during pre-game warm-ups is a technical foul that results in the player being ejected. The head coach is also indirectly charged with the foul.

But when it comes to foul music, that is another matter.

During the warmups for the match, a playlist being broadcast in the gymnasium on Friday got the attention of at least a couple of parents, whose heads snapped to attention when they heard the word “dick.”

The playlist contained music with lyrics devoted to cop killing, sex trafficking, and more deviant behavior. The parent used an app on his phone to capture the playlist:

Caution: Foul language ahead

The song, “Jennifer’s Body” by Ken Carson features these lyrics:

Two things I ain’t ever seen
A nigga that beat a gun and a bitch I need
If I go broke, I’m takin’ your funds, yeah, bitch, I need it
Gave you the whole book on how to get rich and you ain’t even read it
Jennifer’s Body, my bitch is a hottie, my bitch is a boy eater
She don’t even want no food, this dick the only thing I feed her
This bitch a thot, ain’t no way, huh, I’ma keep her
I made a hunnid K in a hunnid ways, ’cause that’s what I keep it
Keep it a hunnid

The Camelot Remix featured these lyrics:

ain’t gon’ say too much when a nigga speakin’ on that hot shit (Yeah)
Fuck the police ’cause them bitches ain’t gon’ stop shit (They ain’t stoppin’ shit)
Oppositions mad, if they play they gettin’ popped quick (Huh? Huh? Yeah)
Flyest nigga in the game, yeah, I’m a cockpit (Yeah, yeah, yeah, yeah, yeah)
Posted on Camelot with a hundred-some shottas (Shottas)
I be swimmin’ with the sharks, lil’ nigga, you a lobster (Lobster)
Bullets heat a nigga up, like he eatin’ on some pasta (Some pasta)
And shout out to Kingston, I keep me some Rastas (Yeah, yeah, rrah)

And it gets worse:

Man, she keep on bitchin’, all that naggin’ and shit (All that naggin’ and shit)
Ho, shut the fuck up and just gag on this dick (Yeah, yeah)
I’m a side nigga, and I love when she swallow
If a nigga say something, hit him with a hollow
That Glizzy (Yeah), knock your meat out your taco (Your taco)
Flexin’ on these bitches, they call me Johnny Bravo
School of hard knocks (Yeah), let me take you to class
My bitch is real skinny, but she got a lot of ass
I love counting money, I get a lot of cash
If you try to take it from me, his toe gon’ have a tag

A parent who is a former police officer approached the audio technician and told him the music was inappropriate for the event, but the technician said it was all clean music.

However, the bleeps in the music were not fully effective and there were many children, as well was teens in the packed house.

Contacted by Must Read Alaska, one parent said, “There are plenty of other uplifting songs that don’t involve drug trafficking, human trafficking, cop killing, or homicide.”

The West Valley Wolf Pack beat the Service Cougars 65-53 on Friday.

Alleged shooter on Government Hill was a ‘model parolee’ who testified for Alaska Democrat lawmakers

Democrat former House Rep. Geran Tarr invited Trevor Stefano, a convicted murderer, to speak in 2022 at a panel she organized that was focused on improving public safety.

Today, Stefano is cooling his heels in a hospital bed as he awaits justice for shooting a man in the Government Hill neighborhood of Anchorage on Wednesday. Police stopped him as he was actively shooting a lawyer at his home. There is some indication that Stefano had worked for the lawyer as a paralegal. Stefano has a court record that is disturbing in that he has also been accused of domestic violence, after he was released from prison, where he only served 12 years for murder.

But Tarr wasn’t the only Democrat who brought Stefano into the Legislature as an example of how prisoners can be reformed. Stefano has been the star witness for other Democrats, such as Sen. Loki Tobin.

In 2024, Fairbanks Sen. Scott Kawasaki held a hearing featuring Sen. Tobin speaking about her bill to reform the Alaska Parole Board and make it easier for violent offenders to be released.

Tobin brought with her the ACLU, and arranged for two paroled violent offenders to testify. One of those offenders was Stefano.

Start watching the Senate Justice Committee hearing at minute 47, when Stefano testified by phone.

Stefano is still technically on parole, while he is being treated for gunshot wounds delivered by the responding Anchorage Police officer, a cop who Police Chief Sean Case said acted heroically to save another life. He has an Eagle River address, which means that his senator is Sen. Kelly Merrick, who has put the Democrats in power in the Senate by joining their coalition.

Spotlight on China risk: Corporate America wakes up

By SARAH REHBERG

As the U.S. prepares for a shift in China strategy during the Trump Administration, corporate America is likewise reassessing its relationship with the geopolitical giant. From General Motors’ $5 billion write-down to IBM’s decision to move R&D out of the country, corporations are waking up to the investment risk posed by China – but they are years too late. 

From voting our shares to direct appeals to companies’ CEOs, we at Strive have demanded corporate America protect American investors from the challenges posed by the Chinese Communist Party. While companies are now heeding our call as the next trade war brews, a long road lies ahead.

Since the company’s inception, we have led the charge to mitigate China risk. When Starbucks vowed in 2022 to open a new store in China every nine hours for the next three years, Strive warned Starbucks against this move, highlighting the material risks to shareholders.

Fast forward to Starbucks’ latest earnings call, where new Starbucks CEO Brian Niccol addressed its disappointing fourth-quarter results, reporting a dip in earnings and revenue, which included a 14% sales decline in China. What was their solution? According to Starbucks, the “best path to growth” in the region may be through local partnerships; a model McDonald’s has adopted, which carries its own risks. 

Since day one, Strive has been clear that China risk is investment risk. As we warned in our white paper on China risk in the fall of 2023, “The CCP dictates the terms on which American companies can operate, including imposing forced technology transfers, censorship policies, regulatory policies, sanctions, and tariffs that harm long-term shareholder value.” 

Other investors are now belatedly looking to follow our lead. This fall, BlackRock CEO Larry Fink finally sounded the alarm on China. Warning companies to “re-evaluate” their ties to the country due to its support of Russia’s invasion of Ukraine – and after years of pinning his own company’s future on business opportunities in the communist country (BlackRock letter; FT article) – Fink called on companies to begin examining their Chinese business dealings as they would any other potential business risk. 

Weeks later, McKinsey axed projects associated with Chinese local government clients. In doing so, the U.S.-based consulting firm reportedly cut nearly 500 jobs from its China unit, signaling a shift away from the country after 30 years building its presence there. And on November 7, shoemaker Steve Madden announced its plan to reduce its China imports as much as 45 percent to avoid likely tariffs under a second Trump term.

While we welcomes corporate America’s emerging concern regarding the changing geopolitical landscape in China, such risk mitigation measures are long overdue and are just scratching the surface of what needs to be done. 

Aside from China’s egregious censorship policies, heavy-handed corporate regulations, and intellectual property theft, the cost of doing business with China is increasing as the West continues to decouple. Under the Trump Administration, reformed landscapes in trade, tech, and Taiwan may further squeeze an already strained Chinese economy. 

Preparations for the new administration are already underway within the U.S. semiconductor industry, which is particularly exposed to national security risks. California-based companies Applied Materials and Lam Research are slashing Chinese vendors from their supply chains. 

With the looming shift in the U.S.-China relationship, companies must do more than simply outwardly acknowledge such risks; they owe it to shareholders to fully and transparently disclose their China operations to paint an accurate picture of their risk exposure.

This past proxy season, Strive voted for a shareholder proposal at McDonald’s that sought an assessment on how the company maintains its reputation, viability, and profitability given its partnerships with Chinese state-owned entities. According to the proponent, “the Company is more than just a restaurant operator in the country; McDonald’s is in a minority partnership (48%-52%) with Chinese state-owned CITIC Capital,” presenting additional financial and operational risks to the fast-food giant. 

As investors demand ‘ex-China’ strategies, conversations surrounding these risks should not exclusively occur behind closed doors among corporate insiders. Shareholders deserve full disclosure of whether their money is being used to drive their company deeper into an increasingly precarious Chinese market.  

This article was originally published by RealClearMarkets and made available via RealClearWire.

Man charged with shooting in Government Hill had already served 12 years for murder

Trevor Stefano, the man who police say shot a man at a Government Hill home on Wednesday, had been released from prison in 2018, after having served time for a drug-related murder he committed in Spenard in 2006 when he was 19 years old.

Stefano has been now charged with attempted murder, first- and third-degree assault, and misconduct involving weapons in the shooting in which he used a pistol to gun down an Anchorage lawyer at his home, which also serves as the lawyer’s office. The lawyer survived but was taken to the hospital with gunshot wounds.

Stefano, born Dec. 7, 1986, is now 38. After the Department of Corrections decided he was making good progress on his rehabilitation, he was released from prison in Fairbanks after serving 12 years of a 40-year sentence (15 suspended), and was ordered to wear an ankle monitor for the rest of his sentence.

He got married and moved to Anchorage, where, in July of 2019, he was arrested for domestic violence and was found to be in contact with felons, including his brother, in violation of his ankle monitor agreement.

Read all about his first murder conviction and release at this link.

“Stefano manipulated and directed the victim to request the charge be dropped. The victim indicated that what she had told the police was true and she was fearful of him and worried that he would kill her or have her killed,” the court record shows. He later was divorced.

“Stefano appealed his termination from electronic monitoring. His appeal was denied by a probation officer, who explained that: (1) Stefano had been given permission to have only telephonic contact, not in-person contact, with his brother Connor; and (2) although the domestic violence charges were dismissed, the officer had heard Stefano’s ‘inappropriate statements to [his] wife’”’ in the recorded calls from prison,” the record shows at the detailed case description at FindLaw.com.

Stefano has additional court records with the state, some involving protective orders.

According to reports, one of the Wednesday victims in the house on Government Hill said she had dated Stefano briefly and said he was stalking her. She was grazed by one of his bullets but needed no hospitalization.

Stefano, who was stopped by a volley of police bullets, and the lawyer he is accused of shooting were both critically injured and required complex surgeries.

Ready, set: Eagle River’s Jared Goecker files for Assembly, Mark Anthony Cox files for school board

On the first day of official filing for Anchorage elected offices, Eagle River resident Jared Goecker made it official, filing for the Assembly seat representing the more conservative part of the municipality — Eagle River.

The seat is currently held by mark Littlefield, who is not running for reelection and has endorsed Goecker.

“Jared is the right person to represent our community on the Assembly. He has the values, experience, and commitment to keep our neighborhoods strong, safe, and thriving,” Littlefield said. “Jared has always stood up for what’s best for our families, and I’m proud to endorse him in his bid to continue serving our community.”

Goecker’s candidacy is already gaining significant momentum, with endorsements from a wide range of respected local leaders. Current and former members of the Anchorage Assembly from Chugiak-Eagle River have voiced their strong support, including Assemblyman Scott Myers and former Assemblywomen Amy Demboski and Crystal Kennedy.

“Jared Goecker is a tireless advocate for local control and will fight to ensure our community prospers,” Myers said. “He understands the unique needs of Chugiak, Eagle River, and JBER, and he will be a reliable voice for all of us.”

“Jared has been a steady, reliable voice for commonsense principles in Alaska for years,” Demboski said. “His leadership will be exactly what we need on the Assembly to safeguard our local values and move Anchorage back in the right direction.”

“Jared brings a new generation of leadership to the Assembly that is desperately needed. I fully support his candidacy and look forward to seeing the positive impact he will make,” Kennedy said.

Mark Anthony Cox

Filing for Anchorage School Board is Anthony Cox, making his fourth run for school board over the past four years. He has filed for Seat B, held now by Kelly Lessens.

As a graduate of the Anchorage School District and the University of Alaska Anchorage, where he earned his Master’s in Business Administration and Finance, he is the owner of two small businesses, Crunchy’s Real Food and Alaska Reserve Study.

Mark emphasized his commitment to collaboration, transparency, and forward-thinking as the keys to strengthening schools, along with: Prioritizing budgets that put resources directly into classrooms; advocating for parental engagement and choice in education; supporting programs that prepare students for success in college, trades, and life; and ensuring every child—no matter their background—has access to the tools they need to succeed.

The filing deadline is Friday, Jan. 24, 2025 at 5 p.m. for the April 1 Anchorage election.

Return to Must Read Alaska for more filing reports in the coming days.

Go to this link to find out how to file for Anchorage elected office.

From soup (with no styrofoam) to free lunches: What have Alaska legislators cooked up for this session?

The Alaska Legislature gavels in on Jan. 21, but the first batch of pre-filed bills has now been posted by Legislative Affairs. The bills cover everything from the use of gold as legal tender to banning styrofoam food service containers (Rep. Andy Josephson).

HB 1, the first bill filed, is by Rep. Kevin McCabe of Big Lake. It’s a bill he has offered in previous sessions, specifying “specie as legal tender in the state; and relating to borough and city sales and use taxes on specie.”

HB 2 was filed by Rep. Mike Prax of North Pole. It “establishes the driving while under the influence diversion program for eligible persons charged with driving while under the influence or refusal to submit to a chemical test; and “relating to judgment for restitution; relating to suspended imposition of sentence; relating to records kept by the Department of Administration; relating to operating a vehicle, aircraft, or watercraft while under the influence of an alcoholic beverage, inhalant, or controlled substance; relating to refusal to submit to a chemical test; amending Rule 9, Alaska Rules of Administration, and Rule 39, Alaska Rules of Criminal Procedure; and providing for an effective date.”

HB 3 was filed by Rep. George Rauscher, “Relating to convening the legislature in Anchorage; relating to the regulation of lobbying; relating to annual student guests of the legislature; relating to locations of sessions of the legislature; relating to the Legislative Ethics Act; relating to the relocation of functions of state government; and providing for an effective date.”

HB 4 was filed by Rep. Dan Saddler, “Relating to write-in candidates for President and Vice-President of the United States.”

In all, there are 37 pre-filed bills by House members so far. The members are still filing them and a second tranche will be released next week.

Over in the Senate, SB 1 was filed by Sen. Forrest Dunbar in support of appropriations to the civil legal services fund.

SB 2 was filed by Sen. Shelley Hughes, “relating to disclosure of election-related deepfakes; relating to use of artificial intelligence by state agencies; and relating to transfer of data about individuals between state agencies.”

SB 3 was also filed by Sen. Hughes, “Requiring school districts to grant qualified persons an assigned duty to carry a concealed handgun on school grounds under certain conditions; relating to standards, training, and continuing education in firearms training for qualified persons granted an assigned duty to carry a concealed handgun on school grounds; relating to communication of school districts with state and local law enforcement; and relating to school crisis response plans.”

SB 4 and 5 were also filed by Sen. Hughes and relate to health insurance.

Bills filed by Republicans in the House and Senate will probably have tough sledding in the Democrat-controlled House and Senate.

Must Read Alaska will analyze these bills and others that will be announced next week, so check back.

You can read the entire list of the first bills’ titles here:

Breaking: Begich III assigned to third House committee: Science, Space, Technology Committee

Congressman Nick Begich III is already assigned to two committees: the House Natural Resources Committee and the Transportation and Infrastructure Committee.

He is now on a third one: House Science, Space, and Technology. He announced it on the Amy Demboski Show on Friday morning.

The committee plays to his strengths, as someone interested in how technologies can be used and how they are at risk for abuse.

On Jan. 1, Begich wrote about 2025 being a big year for things like artificial intelligence, artificial superinteligence, robotics, space, and supply chains at a time when there are global conflicts and inflation, and said with the “continued resurgence of classic small government economic policies in both the developed and the developing world … Buckle up! 2025 will be a lot of things, but it won’t be boring!”

During such a time when people like Elon Musk and Vivek Ramaswamy, both future-looking business leaders, have influence over White House policies in business, space, and technology, the committee may become more prominent than during the Biden era.

Last month, the committee sent a fourth letter to Department of Energy’s Secretary Jennifer Granholm, expressing ongoing concern that pausing the export of liquefied natural gas without scientific justification could eventually lead to a permanent ban on one of our country’s most valuable clean energy resources. Granholm ignored the request for information.

“In total, these letters posed 17 questions and made two document requests. In the nine months since these questions were first posed, the Department has failed to provide any substantive answers about the analyses being conducted to establish LNG export authorizations,” the committee wrote.

Notably, when Rep. Mary Peltola was in the House, she was only assigned to two committees.

The rules of the House typically limit congressional members’ service to no more than two standing committees and not more than four subcommittees within the committees. However, House rules also allow for these restrictions to be waived upon recommendation by either party caucus. It appears the caucus wants Begich on a third committee, as he is recognized as a rising star and a workhorse.

Which subcommittees will Begich be assigned to? Those announcements are expected soon.

LaFrance to keep secret many results of review of Easter Leafa shooting, has another request for proposals for hatchet man to go after officers

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Rather than Mayor Suzanne LaFrance doing the deed, it was Municipal Attorney Eva Gardner who was tasked with releasing the sanitized public version of the “critical incident review and recommendations” concerning an August police-involved shooting. The official version, paid for by taxpayers, is being kept secret by LaFrance’s office. The sanitized version is at the end of this report.

LaFrance’s muni attorney also on Thursday announced yet another request for proposals for a third party to do a second review of Anchorage Police Department policies, training, tactics, and supervision that pertain to use of force, de-escalation, and cultural awareness.

In other words, since the State’s Office of Special Prosecutions chose not to pursue charges against the officer involved in a shooting of a dangerous suspect in August of 2024, LaFrance is going ahead with her own double investigation of police tactics.

The RFP announcement came on Thursday, the day after a chaotic scene in the Government Hill neighborhood of Anchorage ended when an officer shot a man who was actively shooting at a victim. It was the second police-involved shooting in two days in Anchorage. Both the victim and the suspect survived and the officer was not harmed.

On Aug. 15, Mayor LaFrance called for a third party to investigate the police, indicating she does not trust the State Office of Special Prosecutions or the internal investigation into police-involved shootings, such as the one that led to the death of Easter Leafa on Aug. 13, 2024.

The Aug. 13 shooting occurred when the woman in Anchorage brandished a knife and threatened officers and her own family members. After that shooting, LaFrance immediately issued an apology to the family for the death of the woman, who had recently moved to Anchorage from Samoa.

LaFrance ordered not one but two layers of outside review to “understand” the factors that lead to officer-involved shootings and to recommend changes to the Anchorage Police Department’s policies and training to reduce officer-involved shootings.

The first layer of the LaFrance review was to have a third-party investigator direct the administrative investigation of the August 13 incident. The Municipal Attorney’s Office contracted with a licensed private investigative investigator, Christopher Darcy of Fairfax Consulting Group.

Darcy served 31 years with the Las Vegas Metropolitan Police Department, where he was Undersheriff, Assistant Sheriff, and Deputy Chief. That gave him experience with police internal affairs investigations. Darcy is retired from LVMPD and is serves as an independent monitor of the use of force for the City of Albuquerque, N.M. He also works as an expert witness in use of force litigation, working with both plaintiffs and defendants.

The administrative investigation of an officer-involved shooting begins once any criminal process has concluded. The State of Alaska Office of Special Prosecutions concluded its criminal investigation into the Aug. 13 incident and declined to bring charges against the involved officer on Sept. 30.

The LaFrance-Darcy began investigation immediately upon conclusion of the State of Alaska’s investigation. Darcy was provided full access to all information and internal resources necessary to complete his investigation thoroughly, impartially, and efficiently, in conjunction with APD Internal Affairs personnel. His investigation included the participation and perspective of the deceased individual’s family members, who were present at the location of the Aug. 13 incident.

At the conclusion of the investigation, Darcy presented his report to the Municipal Attorney. The report analyzed the Aug. 13 incident and recommended certain changes to APD policy and training.

Apparently, the full report will not be made public because of legal constraints, including personnel privacy rights, but the Municipal Attorney requested that Darcy prepare a separate public report containing his recommendations for training and policy changes.

The sanitized version for the public is the following, as provided by the Municipal Attorney:

Recommendation 1: Enhance policy to ensure (1) call takers and dispatchers receive regular training on information gathering
requirements and (2) call taking and dispatch are included in the scope of after-action or investigative review process on critical incidents.

Recommendation 2: Enhance APD’s supervision policy, making it more straightforward and comprehensive regarding sergeants’ and lieutenants’ expectations regarding critical incident response.

Recommendation 3: Enhance training to identify the specific actions that Sergeants and Lieutenants are expected to perform from the time of call assignment throughout the event’s conclusion. The policy should cover various topics, including de-escalation options, intervention, roles and responsibilities, and creating an array of force options.

Recommendation 4: Enhance command and control policy and training to include a protocol for responding to incidents involving the threatened use of violence by individuals in possession of a deadly weapon. The policy change is intended to ensure supervisors react to a potential critical incident in a timely manner and are proactive in managing the encounter. The policy improvements should consist of a process initiated by dispatch that ensures timely notification of a supervisor by requiring
supervisors to announce their acknowledgment and/or self-dispatch to the call. If a sergeant is unavailable, dispatch will contact another sergeant or lieutenant to respond if possible. Supervisors should manage the utilization of tactics, supervise the incident, and determine the use of a shotgun, rifle, arrest team, less lethal option, or other tools/resources such as the APD Crisis Intervention Team. The policy enhancement should include factors such as requiring verbal acknowledgment from supervisors assigned to high-risk calls, planning a response before arrival, assigning roles and responsibilities, coordinating the deployment of force options, deployment of less-lethal options, crisis intervention options, tactics for slowing the momentum, creating distance, and using cover, distance, and time as a tactic.

Recommendation 5: Enhance existing policy and training to include officers’ and supervisors’ responsibilities. This policy should consist of dispatch, patrol, supervision, and other units that may become involved. Every potential violent confrontation cannot always be de-escalated, but officers can impact many situations’ direction, severity, and outcome based on their decision-making and tactics.

Recommendation 6: Enhance existing policy and training regarding
appropriate force options, including an array of less lethal options, and the effective deployment by a team of officers. The training should clarify officer placement and effective communication in critical incidents.

Recommendation 7: Enhance Reality Based Training (RBT) to incorporate additional scenarios that reinforce the principles of contact officer and cover officer. Develop this concept in conjunction with a de-escalation response protocol.

Recommendations 8: Explore and implement meaningful ways to improve knowledge on effectively communicating with a diverse community. The policy should include specific steps to improve officers’ abilities to communicate without placing any additional threat of harm on officers and empower them, when feasible, to determine if limiting factors could influence communication with a suspect. Factors to be considered are language and cultural differences, medical impairments behavioral health issues, etc.

Recommendation 9: Enhance policy and update practices for interacting with families and witnesses after officer-involved shootings and enhance policy and officer training on best managing the investigation by improving trauma-informed communication with families of those involved in critical incidents.

Recommendation 10: Create a policy that defines when it is appropriate to use weapon-mounted lights to avoid a situation in which an officer inadvertently and unintentionally points a firearm at a human being. Weapon-mounted lights should not be used as a replacement for a flashlight.

Recommendation 11: Review supervisor notification systems and procedures relating to officer weapons qualifications requirements.

  1. Outside Review of APD Policies, Training, Tactics, and Supervision

The second layer of review by LaFrance is to be another comprehensive third-party review of APD’s policies, training, tactics and supervision as they relate to use of force, de-escalation, and cultural awareness so as to reduce the use of deadly force against violent criminals.

The request for proposals is posted on the Municipality’s Purchasing website and available through the Municipality’s BidExpress page. The deadline for proposals is Feb. 13.

Alex Gimarc: Inflation-proofing the Permanent Fund, and the sinister guile of Senator Giessel

By ALEX GIMARC

One of the personally unpleasant tasks I undertake is to watch the political left, listen to what they say, try to understand what they want, and most importantly attempt to listen, however poorly, to how they intend to steal our money.

This week’s entry on that list is one putative Republican State Sen. Cathy Giessel. She started out as a reliable conservative but following a knockdown, drag-out slobber-knocker to defend her Senate seat from then-AFL/CIO Boss Vince Beltrami, she has swung hard left over the last half decade.

One of the things Sen. Giessel does is send out a weekly update on her thinking. While you might not like it, it behooves us all to read it and pay attention, for she is the Majority Leader of the Senate “bipartisan majority.”  

Her latest missive is in defense of inflation proofing the Permanent Fund. Inflation proofing is based on the notion that whatever the Permanent Fund Corporation is doing investing the corpus of the fund is not sufficient to keep up with inflation, something which is a real indictment on the investing expertise of the rocket scientists in charge of the Permanent Fund Corporation.

Sen. Giessel would have us believe that unless we bury substantial amounts of money into the corpus of the Permanent Fund yearly, it will wither away and die on the vine not unlike a late-season tomato.

I find this to be laughable for a couple reasons. First, is that the average inflation rate over the last decade is 2.65%, not an awful number. On The Other Hand, the Standard & Poors Index over the last decade has been  over 10%, more than twice as much. This would tell us that going full numbnuts and simply investing in an index fund would more than triple whatever damage inflation is doing to the Permanent Fund.  

In short, Giessel is either economically illiterate or lying to us.

Given that she has spent a decade or so in the Alaska Legislature, I would assume that she is not an economic illiterate. If that isn’t true, why would she be lying to us?

There may be several reasons. First and most importantly, is given her hard left slide over the years, she is no longer a Permanent Fund dividend fan, as she has better plans for that money than disbursing it to us mere mortals.

Indeed, she has been leading the “minimize the PFD” crowd over the last decade. 

Second, she has plans for money allocated to the PFD. This would be increases to the education foundation formula and moving state pensions from defined contribution to costly defined benefit.  

Given a finite dollar availability, the more money you spend on union benefits, the less you have for the PFD. Inflation proofing the corpus of the Permanent Fund when a simple investing strategy would triple the returns becomes a way to further shrink that pool of money.

Gissel is trying to minimize the available dollars for the PFD while rewarding her new union supporters while flashing the shiny in our eyes of inflation proofing the corpus of the Permanent Fund. Try not to chase the shiny.   

Two thoughts come to mind:

First, if the Smart Guys at the Permanent Fund Corporation can’t figure out how to invest in stuff that beats inflation and index funds, they need to resign and be replaced by machines that will simply invest in Index Funds. 

Second is that Cathy Giessel is lying to us, something we need to be careful of as she reportedly has plans on being our next governor.  

Try not to elect a liar. 

Alex Gimarc lives in Anchorage since retiring from the military in 1997. His interests include science and technology, environment, energy, economics, military affairs, fishing and disabilities policies. His weekly column “Interesting Items” is a summary of news stories with substantive Alaska-themed topics. He was a small business owner and Information Technology professional.