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 info@greenworldbvi.com.