Immortalism.com (June 2, 2023)–Washington has just avoided default with little time to spare. But sooner or later, Washington will default. Why? Because it’s spending much more every year than it takes in in taxes. And as of today, Washington’s total debt is US$31.4 trillion. In other words, Uncle Sam is insolvent. When Washington finally defaults, how would this catastrophe affect Cryonics and its two largest freezers–Cryonics Institute (CI) and Alcor?
Serious Loss in US Treasuries & Bonds Investment
Rather than extremely risky gambles on “cryptocurrencies” or other schemes, we assume both Cryonics organizations have been pursuing a prudent and conservative investment policy with their modest resources. According to virtually all investment advisers, such an investment policy would involve buying and holding a substantial amount of U.S. treasuries and bonds. Widely believed to be the “safest” of investments.
So if indeed Alcor and Cryonics Institute have significant US bonds holdings in their portfolios, then they would suffer significant to serious loss in their US Treasuries and Bonds investment, and in their net asset. Since both Cryonics Institute and Alcor have very modest financial resources despite more than half a century in business, such a serious financial setback could threaten their very existence.
Stock Portfolio Could Plunge
If neither Alcor nor Cryonics Institute hold any US treasuries or bonds, then we assume it holds U.S. stocks. A U.S. default on treasuries and bonds would very likely result in a big plunge in U.S. stocks. Bank stocks, normally blue-chip, would plunge, as banks hold lots of US treasuries and bonds. Many banks would collapse. So if Alcor and Cryonics Institute hold any US stocks, they would undoubtedly be seriously impacted.
US Default Will Impact Cryonics Members
Last but not least, Washington’s default would also seriously affect most if not all of Alcor and Cryonics Institute members. Many of them could lose their jobs. They would be unable to pay their annual membership dues. Worse, they would be unable to pay the premiums on their insurance policy to cover their freezing. This would greatly cut both cryonics orgs’ annual revenues.
Insurance Companies of Cryonics Policies May Collapse
Last but certainly not least, a US default will certainly affect insurance companies which all dutifully buy and hold Uncle Sam’s Treasuries and Bonds. It could very well collapse some, if not many, insurance companies, especially the smaller ones, who are probably the ones allowing policies for cryopreservation.
If this is so, then it would be a big setback to Alcor and Cryonics Institute indeed. Why? Because the members of CI and Alcor who hold insurance policies for their freezing after death would find their policies worthless after their insurance company goes belly up. And since new members would have to pay for their freezing with cash, this would make it much more difficult for Cryonics facilities like Alcor and Cryonics Institute to recruit new members.
Is Cryonics Financially Unsustainable?
So what does this clear and imminent danger mean for the financial viability and future of Cryonics’ Alcor and Cryonics Institute, both with very modest net assets to speak of. Even though CI started in the early 1960s, and Alcor in 1972.
If you’re flirting with the idea of betting on Cryonics to give you a shot at immortality, you must ask the question of whether its most “established” organizations are financially viable and likely to survive things like an almost-certain Washington default. If Alcor and Cryonics Institute are unlikely to survive a US default or a new Great Depression and a US and global stock market collapse, we don’t even have to get around to talking about whether Cryonics is scientifically feasible or even remotely probable.
George Bernard Shaw, the great English playwright, wrote in “Back to Methuselah” that “The money may not wait for them. Few investments flourish for three hundred years.” In light of Washington’s near-default, Shaw’s two-liner may prove to be right on target, and one of the more trenchant critiques of Cryonics. xxxx
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