Sunday, 22 April 2012

New Article on the Dangers of QE and Hedging Against Inflation

Risk of High Inflation
We are quite pleased to note that we recently wrote an article published on the Market Oracle website in the UK.  The full article is here.  In the piece, we wrote about the dangers of QE and inflationary risks emanating from the QE policy, as well as how individuals can use "Real Asset" investments such as forestry and farmland to hedge against the risk of inflation.  Its worth noting that inflation in the UK has remained above 3pc for 28 months straight, and was recently at 3.7pc in the US.  Whilst central bankers have been worrying about the risks of deflation, it seems inevitable that some of the new money created by QE will eventually leak into the real economy and pose inflationary risks.  Perhaps the central bankers might at some point turn their attention to this danger?