How Can You Protect Yourself From QE?

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

QE May Go On Forever - Hedge Against Inflation with Alternative Investments

A tsunami of printed money from QE 

One of our favorite bloggers is ex Wall Street maven Bruce Krastings.  In his latest post, he looks at the concept of the ongoing programs of QE as being essentially "Forever + Unlimited".  He believes all of the central banks - from the BOE, to the FED, the Bank of Japan, the ECB and even the SNB (Swiss National Bank) - are essentially in a phase of unlimited QE.

Below is a great quote from Mr. Krastings:

"The major economies of the world are faced with Print or Die. So print it will be. I do wish the monetary overlords would acknowledge that what is being done is irreversible, and that the consequences will be felt for years. What was once unthinkable, is now permanent."

Unfortunately, Mr. Krastings is probably correct.  So, what can someone who fears the effects of QE and wants to hedge against inflation actually do?  In our view, the best thing you could do to protect yourself is to look at "real asset" alternative investments.  We consider real assets to be non-financial assets - "stuff" like forestry or farmland that have a real and inherent economic value and will hold up well in an inflationary environment once all of the printed cash from the unlimited QE starts its' tsunami into the economy.  Realistically, we cannot say for sure when this tsunami of QE funny money will hit us, but hit us it will, and if you want to protect your yourself against inflation, real asset alternative investments are the way to go.

To find out more about GreenWorld's forestry and farmland investments, please contact us at info@greenworldbvi.com.

If You Are Looking For a High Yield Alternative Investment, Consider Agarwood Forestry Investments

Agarwood - the ideal high yield investment

Some people have e-mailed us asking how the investment gains on GreenWorld's agarwood investment can be so high.  The reason is the price of agarwood itself.  It is literally one of the most expensive woods in the world.  For example, agarwood can be as high as US$10,000/kg for the highest quality wood chips, and easily averages around US$3,000-US$4,000.

If you are looking for an investment in agar wood as a real asset investment to hedge against inflation, GreenWorld's agarwood is ideal for you.  GreenWorld's agarwood investment is a purely passive investment, everything from the planting of the agarwood trees to the harvesting to the sale of the processed agar is done for you by the plantation company.  However, if you are looking to buy agarwood chips, or trees or agarwood seeds, that is not what GreenWorld BVI is involved with.  We just mention this because a couple of people have contacted us with the wrong idea.

If you are looking for the ideal highly profitable high yielding investment that is easily affordable by individuals, then please contact us at info@greenworldbvi.com

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 info@greenworldbvi.com.

Farmland Investments and Farmland Funds Should Soar in Value

As any of our blog readers know, we at GreenWorld are huge believers in investing according to global macro trends.  GreenWorld believes that it is best to identify global trends, and then ride the way as these trends develop.  One of these global macro trends is the continued high food prices.  If you look at the chart below, you can see that the food price index has more then doubled in the past 12 years.  This due to a number of reasons, one of which is clearly the shrinking arable land in the world.  Global population is increasing whilst arable farmland is decreasing, and supply and demand alone dicate that farmland should increase in value.

Smart investors such as a number of hedge funds as well as the legendary commodity investor Jim Rogers have taken advantage of this situation by establishing farmland funds.  There are a number of farmland funds focused on African farmland, where the low price of land provides the scope for both large dividend payments as well as plenty of opportunity for the long term increase in the value of the land. It is important emphasize that these farmland funds involve DIRECT OWNERSHIP OF FARMLAND, i.e. they are not financial funds in any sense of the world.   Of course, many individuals who recognize the opportunity in direct farmland investments will say to themselves, "this is all well and good, but these big farmland funds are just for institutional investors and the wealthy".  Luckily, this is no longer true!  GreenWorld is at the forefront of rolling out a number of investment opportunities that are focused on direct ownership of farmland and target retail investors due to the very low minimums they require.  Below are GreenWorld's two core farmland investments.  Please contact us at info@greenworldbvi.com if you are interested in further details:

Farmland investment in Africa

Farmland investment in Europe

Forestry Investments as a Hedge Against Inflation

If you are worried about inflation and/or are interested in an asset more stable then stocks, then forestry investments are one of the ideal alternatives available.  Forestry provides an excellent inflation hedge; the demand for wood is causing increasing shortages – especially in China as the graph below demonstrates; and the performance of forestry investments are uncorrelated to financial assets like stocks.  After all, trees do not care what the latest numbers from the DOW, FTSE or Nikkei are.  

One excellent forestry investment to consider is a teak investment.  When looking at a teak investments, consider that fully mature wood is the most valuable. Peak returns for teak are usually projected at 20-25 years, which is why GreenWorld and our forestry management partner have structured our teak investment on a 25-year plan.  However, one excellent feature of our investment in teak is that our investors can exit after just 5, 10, 15 or 20 years.  The project manager will buy back your land and trees at cost+5% per annum or you have the option to sell via our established trading platform or to a third party.  This gives you the option of a GUARANTEED exit strategy, or else if you have a longer-term time frame you can hold your teak investment to maturity.  Please visit our website to learn more about GreenWorld's investment in teak.

Forestry Investments - An excellent "China Play"!

Australian Farmland Investment To Benefit From High Wheat Prices

Australian wheat - unique farmland investment for retail investors

We at GreenWorld have long seen continued strong interest in our portfolio of farmland investments.  One of our most attractive projects is our farmland investment in Australia.  This project is quite attractive due to the extremely low price of farmland in Australia (approximately US$600/acre versus US$10,000/acre in England or the US).  The investment targets annual dividends of approximately 9%, plus any upside in the capital value of the land.  Finally, the political and economic stability of Australia makes this one of the more attractive alternative agriculture investments available to retail investors.

GreenWorld's Australian farmland project focuses on wheat farmland located in the western Australian wheat belt.  What is making this project particularly attractive now is that wheat prices have skyrocketed lately, and as this article notes, the Australian wheat crop has benefited greatly from this trend.  For investors in Australian farmland, this promises a year of very attractive annual dividend payments!

If you are interested in finding out more information on how you can participate in this project, please contact us at info@greenworldbvi.com.