|Mervyn King cranks up the BoE's money printing machine|
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 firstname.lastname@example.org.