acting-man.com / Pater Tenebrarum / March 4, 2015
The End Result of Decades of Fiat Money
We have recently come across a few house price charts – the Economist has a handy tool that allows one to compare global house prices and a few related indicators, like price/rental yield and price/income. Based on house price indexes alone, the cheapest real estate is currently available in Japan (where prices have been declining since 1989 in spite of the fact that they are not making any new land there – imagine that!), while the by far biggest real estate bubble appears to be underway in South Africa.
However, one needs to consider that the South African Rand has declined quite a bit since the 1970s, and the country had very high relative price inflation rates both during and after the apartheid era. As a result, prices are actually not all that stretched in real terms.
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