I find the current orthodoxy of financial commentators impossible to swallow. The rush to spend more and more billions (disguised by the reassuring words 'financial stimulus'). The decision to start printing more of the stuff (disguised by the meaningless words 'quantitative easing'). The dropping of interest rates towards zero. These things all seem crazy to me, a recipe for inflation. And then we have the collapse in Sterling which is bound to push up the cost of imports - and stocks can only be run down so far. Even more pressure on inflation. I read that prices are falling, and that the RPI is down close to zero. But last month's Consumer Price Index dropped only 0.1% - to 3.0%. This should have been seen as a red flashing warning light - but for some reason it wasn't. The UK is in a mess because our banks lent to much, (often without giving much thought to the capacity of the borrower to repay), and the British Government, despite having already borrowed too much, has just has gone on a spending and borrowing spree, the like of which we have never seen before. And yet all these financial experts dismiss inflation as not being a threat. Except Liam Halligan in today's Sunday Telegraph. Well Liam might be 'bonkers' - 'bonkers' like a man who has his opened his eyes to see, rather than his ears to hear what those around him are saying..
Anyway, my view that inflation will soon be back to stalk the land has caused me to take an important personal decision today. Last September, I put a 100 acre block of farmland on the market. But when the banks suddenly hit the wall, I decided to rent it out over the winter instead, with the intention of selling it in the Spring when the panic was over. Some hope of that. Today, I've decided I'm not going to sell it at all. When inflation comes to town, the best investment is farmland (or gold I suppose). In two year's time, I see a new Government fighting to control the evils of inflation, with interest rates being forced up to cripplingly high levels again. I see Gordon Brown's legacy as a crashed landscape in need of massive reconstruction. OK, so perhaps I'm wrong - 'bonkers' even, but I'm taking precautions, starting today.