Are you worried about inflation?? You should be. At some point all of the new money created by Quantitative Easing (QE) will hit the real economy. You can protect yourself with an inflation hedge using GreenWorld's specially designed real asset investments.

Friday, January 4, 2013

Central Bank Balance Sheets, Inflation and Farmland as a Hedge

As per Agora Financial - central bank balance sheets
are exploding due to QE, and hence the interest in assets
like farmland which can serve as an inflation hedge

GreenWorld recently came across a very interesting article here on how many investors are diving into farmland due to their fears of hyperinflation.  Is the hyperinflation fear, just hysteria, or could it be justified.  We at GreenWorld are inclined to think that whilst we will not reach hyperinflation, rates of inflation above 10pc are entirely possible as all of the money printed from QE begins to leak into the world economy.

As we have always said previously about investing in farmland, it is a real asset that cannot be printed or conjured out of thin air by central banks.  Farmland also pays current income, and is a fine method of riding the worldwide trend of rising population and shrinking arable land.

Feel free to explore further the possibility for making farmland part of a portfolio of real assets:

Monday, November 5, 2012

Fiat Currency Allows Governments to Print Unlimited Amounts of New Money

The fiat currency printing press continues to roll out more money through QE
It is by now indisputably clear that central banks globally have printed unprecedented amounts of new money through QE.  Why can they do so? Because money today is in the form of "fiat currency", i.e. money that is created by nothing but government fiat.  Fiat money has no inherent economic value, and nothing backing it except governments' credibility.

So, with all of that new fiat currency created through QE, why have we not seen sky high inflation yet?  The reason we have not seen high inflation is that people and businesses are still squirreling away Pounds, Euros and dollars because they remain anxious worried about the prospects for the economy. 

Sooner or later, however, the Federal Reserve and other western central banks will have created so much new paper fiat currency through QE that at that point, the urge to buy – whether it's capital goods or consumer goods or commodities – will revive the economy, and the recession will come to an end. That will reduce the level of caution people feel to something near normal. The result will be that all of the excess money that has been created since 2008 will come pouring out. For a little while it will look like everything is going well – the economy will seem to be booming, we can all go back to our old ways. But then the extra printed money will set off massive inflation, and then the good times will be over.  When that day comes, make sure you have some amount of real asset investments such as forestry or farmland in your portfolio as a hedge.

Contact us at t learn how we can protect you from the dangers of QE and the ravages of inflation.

Wednesday, October 17, 2012

QE Craziness is Out of Control - Buy Real Assets That Cannot be Printed

Mervyn King cranks up the BoE's money printing machine
We at GreenWorld never cease to be amazed by what we read about how politicians and central bankers manipulate the economy.  However, we were just perusing an article by a gentleman named Allister in the UK's Daily Telegraph which shocked our already jaded views of the powers that be.  In Mr. Heath's DT article - entitled "Britain will feel the pain when the QE bubble finally bursts" - we discovered that the UK's central bank, the Bank of England (BoE) has taken QE to extraordinary heights.  

Of the £100 billion in deficit financing raised by the UK Treasury this year, approximately £62 billion has been purchased by the 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!  And this is QE in extremis (to coin a phrase our favorite journalist Ambrose Evans-Pritchard might use), with the BoE not just buying existing bonds or other assets; rather, the BoE is literally creating new money with the push of a button!

In the face of this message, how can a retail investor hedge against inflation??  The answer is very simple.  Buy something the government cannot print any more of, such as timber investments or agriculture investments. Legendary commodities investor Jim Rogers is a huge fan of agriculture, and the always prescient Jeremy Grantham also just recommended both institutional and retail investors have long-term investment in farmland and forestry in their portfolios.

Too see how GreenWorld can assist you in hedging against QE, please contact us at 

Friday, September 7, 2012

Forestry Investments Make an Excellent Hedge Against Inflation

Forestry - an excellent investment and inflation hedge

As the European Central Bank (ECB) prepares to print unlimited amounts of money via QE, it is worth considering what types of investments offer the best hedge against inflation?  One asset class that offers an excellent inflation hedge is forestry investments.  There is generally a close correlation between timber prices and overall prices in the economy, and in that sense forestry can act as an excellent inflation hedge.  

One option very much worth considering is GreenWorld's European forestry investment.  This forestry investment is located in Germany, and involves a hardwood tree called Paulownia.  There are two reasons to consider this forestry investment:

1) First, the fantastic long-term returns associated with hardwood timber investments as compared to softwood timber investments such as pine. A m3 of softwood pine lumber for example goes for € 60- € 80/m3 or $86 - $115/m3 . Paulownia, by contrast, for about € 400- € 500 or $575 - $720/m3.

2) Second, not only are there fantastic long-term returns associated with Paulownia timber, but the fact that the entire project and forestry plantation are situated in the highly stable country of Germany makes this an extraordinarily attractive project in which to invest. The stability and rule of law that Germany possesses is unparalleled.

Please contact us at to learn more.

Monday, July 30, 2012

Jim Rogers on Quantitative Easing and Farmland Investment

Jim Rogers on printing money
Here at GreenWorld, legendary commodities investor has long been a huge favorite.  Rogers pityh sayings on fiat currencies, QE and printing money are reason enough to listen to him.  Well that, as well as the fact that he is one of the most successful commodities investors of the last 50 years.

What does Rogers like now?  Jim Rogers loves farmland, and in fact manages two farmland funds himself.  Rogers argues that farmland investments are an excellent way to play continued high agricultural commodity prices, and farmland is also an excellent hedge against inflation.  And, in a near-zero interest rate world, farmland investments generally pay excellent yearly dividends as well.  For those interested to use farmland investments as a way to hedge against inflation, there are now  a number of unique projects have opened up globally for retail investors in farmland.  GreenWorld offers three farmland investments for retail investors:
Farmland investment in Africa

Farmland investment in Europe

Farmland investment in Australia
Please contact us at for additional information in how you can participate in these projects. 

Wednesday, July 18, 2012

Hyperinflation Caused by QE and Massive Debt Could Happen - UBS

Hedge against QE and inflation with real assets
A very dramatic article out today from Zero hedge talking about hyperinflation.  In the article, there is a quote from the large Swiss Bank UBS describing hyperinflation.  UBS notes that hyperinflation is more of a political issue involving the complete loss of confidence in fiat currencies, as everyone switches to real assets to protect their purchasing power:

"Hyperinflation: Paper money only has a value because of the confidence that the money can be exchanged for a certain quantity of goods or services in the future. If this confidence is eroded, hyperinflation becomes a threat. If holders of cash start to question the future purchasing power of the currency and switch into real assets, asset prices start to rise and the purchasing power of money starts to fall. Other cash holders may realize the falling purchasing power of their money and join the exit from paper into real assets. When this self-reinforcing cycle turns into a panic, we have hyperinflation. The classic examples of hyperinflation are Germany in the 1920s, Hungary after the Second World War, and Zimbabwe, where hyperinflation ended in 2009. Indeed, hyperinflation is not that rare at all. Economist Peter Bernholz has identified no fewer than 28 cases of hyperinflation in the 20th century

While we at GreenWorld still believe that hyperinflation is a very low probability event, it is certainly what might be called a "fat tail" type of risk that is worth hedging against.  There is no question that it is worth asking how we can protect ourselves from QE and the money machines of central bankers.  We remain firm in our belief that real asset investments are the ideal way to hedge against QE and the risk (however small) of hyperinflation.  Lately, we have seen a great deal of interest from investors in our agriculture investments, and we encourage investors to take a look at our offerings in European farmland, African farmland and Australian farmland.