Wednesday, 17 October 2012

Hedge Against Inflation as BoE Takes QE and Printing Money to New Heights

The BoE's printing money accelerates!
We at GreenWorld just came across an extraordinary article in the UK's Daily Telegraph by Allister Heath.  Of the £100 billion in deficit financing raised by the UK Treasury this year, approximately £62 billion has been purchased by the UK's central bank, the Bank of England (BoE).  To note an even more incredible figure, the BoE has purchased £42 billion of the £34 billion raised by the government since August 1st.   Think about it - the BoE is literally financing the British Government!  

Many liberal economists tell us not to worry.  However, the risk is that once serious inflation, or even the fear of it, takes hold, it will probably already be too late for the BoE to address it.  We are relying on the same central banks who played such a big role in contributing to this crisis to act at just the right moment to drain the financial system of all this extra liquidity. Given central bankers' history of always being behind the curve, can we really count on them to get their timing right??

If you want to have some security and protect yourself from QE, consider investing in real assets that central banks cannot print any more of.  Farmland and agriculture are great bets. If you want to look at how to invest in agriculture see what Jim Rogers is doing.  Jim Rogers has opened a number of farmland funds, and 
he believes we are only in the early innings of the farmland investing story.  Why consider farm land against inflation?  Because farmland is an excellent hedge as there is a finite quantity of it in the world.  If you want to explore options for farmland as an investment for small investors, please contact us at