Tha Alpha Strategy, what it is, how it works

In similar economic times, the mid to late 1970's, a Economist, John Pugsley wrote "The Alpha Strategy", a book on economics and more importantly, how to protect the purchasing power of your hard earned monies through a reviewing of the role of the goods we use in our lives.

Pugsley's Alpha Strategy basically eschews investments in liquid assets in favor of banking on inflation growth outstripping returns on investments in typical consumables such as Dry Good foods, Home Cleaning Products, Personal Care Products.

A good example of the Alpha Strategy in practice is found in the common light bulb, the same Light Bulb is mandated to be replaced with mercury filled toxic light bulbs in 2012, currently a 4 pack of generic light bulbs costs 1 dollar + tax, currrently a single mercury light bulb costs 3.50 a piece.

The average American Family uses 24 light bulbs a year:

Incandescent Light Bulb Cost per year........6.00

Mercury Light Bulb Cost per year.....84 dollars

A 78 dollar difference per year, if a ten year supply is purchased via the Alpha Strategy, incandescent bulbs would cost 60 dollars, a mercury bulb 10 year supply would cost 840 dollars.

The Alpha Strategy would turn 60 dollars in cost today, into 780 dollars in cash over a ten year period..

Wheat prices have doubled, that will work it's way down into the price of familiy staples such as Rotini, when price checked, the average cost has increased 37 cents on a box of pasta, with three pasta based meals a week, or 1.11 per week in additional cost, over 52 weeks, a 50 dollar + savings can be realized by bargain shopping and stock piling a supply of pasta now, before the poor wheat harvest and additional energy costs raise prices even higher.

The Alpha Strategy is a Contrarian one, instead of trying to increase the yield from an investment, it seeks to attack Future Costs by using today's dollars to cheat inflation down the road.

The additional benefits are that your Savings is Tax Free, and having a larger then average Larder (The Average Family has about two weeks of food stored) will help to protect one's loved ones in the event of a social disruption.

The Alpha Strategy is quite old, thousands of years old in fact, it comes from a time when there was no money per se, there were however goods such as shoes or swords or food herds that wealth was based on, Desert Dwellers have practiced this for a very long time.