The United Kingdom announced today that their level of inflation has reached its highest level since 1997.  This is bad news for the world economy as we watch our stock portfolios and 401ks begin to lose value.  Not only are stock prices going down but we are also seeing the value of the dollar continue to erode.  In fact the US treasury is flooding the market with newly printed dollars in an effort to soften the freeze in lending instituted by many banks and financial institutions.  This means that paper assets like cash and stocks are losing value everyday.  Very simply, the more dollars their are in circulation, the less valuable the dollar becomes.

Intelligent investors are moving their money to hard assets like commercial real estate to beat the effects of inflation.