Quote Originally Posted by kiora View Post
"The root cause of financial instability is cheap debt. Whenever central banks suppress interest rates below the rate of inflation, the resulting negative real interest rates fuel financial instability."
https://tradingdiary.incrediblecharts.com/
Interesting article negative real interest rates do not make sense. No sane investor would accept them in a free and open market for capital but unfortunately we are competing against central bank printing presses.

Gold gets hammered in the article. It is unproductive a bit like money in the bank. Are houses and high debt a good hedge against inflation. Probably over the long term very good. Over the last year not so much.

https://www.zerohedge.com/personal-f...e-changed-2010

I may have missed the boat on housing in NZ as an inflation hedge in the near term. Per the attached article the last 13 years have seen house prices increase 152% in nominal terms or 12% per annum simplified (152/13) or 7% in real terms. No one was complaining on the way up. Why should they complain on the way down.