Japan's real estate market is already suffering from the demographic cliff the country has gone over. The same fate is soon to befall Europeans. It looks like the Germans are lagging behind other Europeans in terms of wealth creation due to their low property ownership rate. If the real estate bubble bursts in Europe, this too will be history and everything will find itself at the bottom.

The Germans, the big holders of cash, will be in for another shock when inflation picks up and kills their purchasing power. This process is already brewing in the commodity markets that are slowly bottoming out. Dark clouds are gathering...