Tuesday 27 November 2012

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.

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