Monday, 17 December 2012

How Can You Protect Yourself From QE?

gilts
The affects of QE in the UK
We just came across some rather interesting information on the QE activities of the UK Central Bank, the Bank of England (BOE).  The UK government’s net public sector debt is currently £1022.5 billion. By now, approximately 30% of public sector debt is held by the Bank of England as asset purchases.  And that number only continues to grow!

Of course, the UK is not alone.  At present, US FED Chairman Bernanke has already been implementing QE3 in the States.  When QE 3 was announced, the Fed promised to buy $40 billion a month in mortgage-backed securities, and in Operation Twist, it vowed to exchange short-term Treasury securities for long-term securities.

QE seems really seems never ending, doesn't it?  The question is, how can you protect yourself and hedge against this never ending QE?  From our perspective, the answer is real asset investments, "stuff" that cannot be printed by central banks!  We would like to point you towards a couple of articles we recently wrote on the well known investment side Market Oracle in the UK.  The first article provides an overview of real assets, whilst the second article looks at alternatives to buying Gold as your hedge against inflation - i.e., finding assets that provide real economic value and produce actual INCOME!

http://www.marketoracle.co.uk/Article34230.html

http://www.marketoracle.co.uk/Article37515.html

If you are interested in learning more about various real assets such as forestry investments and farmland investments, please feel free to visit our website: www.greenworldbvi.com