Financial Self Defense w/ The Alpha Strategy

I am not big on investing with the current economic situation.  It scares me.  I am afraid that I will save my money and when I need it the most it will not be there for me.  That does not mean that I think it will have all disappeared.  I believe that with inflation and changes in law that by the time I need the money what is left will not be enough to truly amount to anything significant.

I even think the future may bring a different set of classes.  Instead of the upper, middle, and lower classes I think we might be looking at the haves and have-nots.  This is where The Alpha Strategy comes into play.  The Alpha Strategy is a book written by John A. Pugsley in 1980 but should not be written off as non-applicable to today’s situation.  Mr. Pugsley’s work is not only relivant but enlightening and could almost be treated in part as a guide to assist in preparing for an uncertain future.

Pugsley comes from the Austrian economics school of thought which is gaining more and more traction lately across the globe.  If you are interested in learning more about the Austrian school of thought check out the Ludwig von Mises Institute.  While the background on economics and the economy is great, what makes The Alpha Strategy such a great tome for the survivalist/prepper is the valuable approach to accumulating wealth through physical holding of goods and not paper or intangible investments.  The emphasis is placed on holding future consumables because you are protected from inflation, taxes on inflation are avoided, investment risk is avoided, and storing these items is a hedge against a recession or depression.

The Alpha Strategy breaks investments down into four levels.  Level one is investment in production which is essentially education, a second trade, and tools with which to produce.  Level two is to save consumables such as items to maintain your home or shelter, foods, beverages, first aid supplies, hygiene items, cleaning supplies, clothing, etc.  The third level of The Alpha Strategy is to save real money.  This includes manufactured goods for the purpose of resale or barter, raw commodities, and precious metals to name a few.  The fourth and final level is to protect against theft.

This is a great book for the prepper but also for the person that just wishes to better understand how the economy works.  The bonus is that it contains a written plan for how to invest in tangible assets as a means of securing your future.  If you are interested in reading The Alpha Strategy, it can be downloaded from The Bio-Rational Institute.