“We’re in this low interest environment that has been going on for a long time, and so there is good reason for these high prices [for property],” said Isabel Schnabel, a member of the council, said in Berlin on Wednesday. “But when the interest rates rise again these prices could go very quickly in the opposite direction.”
This coincidence must alert readers that a tempest is brewing on subjects noted: lurking inflation, increasing debt, suppressed interest rates and the shifting of hegemonic power. There are only two important questions in investing that also apply to subjects impacting the future stability of the world — tell me why and tell me when. Plender gives us the “why”, the ever-increasing “intolerable burden” of government debt and suppressed rates leveraging the global financial system. He gives us the tipping point. What we await is “the when”, as in when do we know we have “tipped”. Paul Hackett Madison, NJ, US Letter: Why the geopolitics of international currency choice matters
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