In looking at the rationale for
farmland as an investment, we just came across a pretty scary chart below on the total debt to GDP in some of the major global economies. The numbers are scary, particularly in the UK and Japan where it is over 500pc. How could this debt possibly be serviced? The answer is, it cannot be, at least in any rational sense of the word. We believe that governments will do what they have always done, which is to lower debt by printing additional money - probably through Quantitative Easing (QE) or some similar method - which will lower the real (as opposed to nominal value) of this debt.
Agricultural investments in land will provide investors an hedge against inflation as a "hard asset", whilst also providing a steady stream of good dividend income and offering excellent upside potential for capital gains due to the ongoing agricultural "super cycle" as coined by noted farmland and commodities investor Jim Rogers.
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Massive Debt Overhang in Global Economy Ensures Addition QE and Printing of Money |
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