I fear that Robert Liebman does not fully appreciate the potential consequences of the upward spiral of increasing money supply. Both the UK and the US are heading for serious problems with regards to personal debt. As more and more money is borrowed to fuel our standard of living and servicing debt, our governments have to respond by increasing money supply - I dont know the exact figures but its about 14%+ increase in money supply (printing money) a year in the UK. If this ever increasing money supply were to continue then we will end up with weimar hyperinflation - money becomes worthless. Perhaps you prefer the alternative? Households cut back on spending, banks make it harder to borrow - credit tightening by banks; the government can no longer print money to keep the economy afloat = recession / depression. I fear that we will follow the route to hyperinflation since my generation have become used to living with debt - we no longer fear it. I do not see a way of escaping the inflationary cycle. The Bank of England will have to increase interest rates by another 4 or 5% yet. Invest abroad! Although i fear a global economy slowdown.

I guess the question is (WHAT IF SENARIO) how does the likely tough times effect our investment strategy - still maintain our property portfolio and achieve good capital growth. I have my own views on this but I would like to hear your views!