DON’T BLAME ALBO FOR RATE HIKES: THIS IS BIGGER THAN AUSTRALIA - NATHAN BIRCH

# INVESTOR AND FOUNDER OF B.INVESTED NATHAN BIRCH SAYS WE'RE HEADING FOR A GLOBAL FINANCIAL DEPRESSION

# HE PREDICTS A MAXIMUM OF 12 MORE MONTHS OF RATE HIKES BEFORE RATES RUSH TO ZERO, LEADING TO GLOBAL HYPERINFLATION

# PANIC SELLING DURING THIS TIME WILL SEE DISTRESSED SALES OFFERING HUGE OPPPORTUNITIES TO INVESTORS

Property investment guru and founder of B.Invested, Nathan Birch who has a personal portfolio of over 400 properties, says that today's expected RBA rate hike and the predicted hikes over the next 12 months are not Albo's fault; it's all due to global hyperinflation that is barreling toward what he says will be a Global Financial Depression - or GFD.

With the RBA expected to lift the cash rate today by 25 basis points, taking it from 4.35 per cent to 4.60 per cent, Birch says the current global debt crisis will ultimately force interest rates down to 0%, creating major opportunities for investors but not before the catastrophic effects of hyperinflation sees the cost of everything, from food, fuel and living costs, rise to unimaginable proportions. 

He suggests Australians should arm themselves at this time to mitigate the damage to their finances, pointing to ideas he has already personally enacted such as growing your own food. 

"People see interest rates rising and immediately want to blame Albo or the Labor Party. I'd love to blame Albo for everything like everyone else does, but this is much bigger than Anthony Albanese or the Labor Party," Birch said.

"What we are witnessing is a global currency and debt problem. There are cracks appearing across the international financial system and Australia isn't immune from them."

Birch outlines that developments in major international economies, particularly in the U.S and Japan, have implications for borrowing costs and financial markets around the world.

"US 10-year Treasury bonds yields hit 5.2 per cent recently while Japan sustained a zero percent interest rates for a long time, but this is rising sharply now and is an indication that the GFD is well upon us." Birch said.

He says that currently, the US government is $40 trillion in debt and has to print its own money, which is devaluing its currency, increasing the price of bons, which leads to a significant crack in the financial system.

He adds that as an investor, he is not worried about the impending rates, after all, what goes up must come down. 

Birch expects to see further panic-selling during this time, so investors seeking cash flow positive assets will have increased opportunities to purchase if they do so strategically and with sufficient cash flow and borrowing capacity. 

"The opportunity for investors is in the fear," he said.

He also warns that if central banks are ultimately forced to cut rates aggressively in response to a major economic downturn, the resulting increase in liquidity could once again fuel asset-price inflation.

"We're not seeing property simply collapse everywhere because rates are higher. Some markets and properties may soften, but inflation is still running through the global economy," he said.

"Don't buy something just because you think rates are going down, and don't sell a good asset simply because rates have gone up."

TO INTERVIEW NATHAN BIRCH, email marta@marksonsparks.com or call Marta Wiacek on 0409 291 785 or email max@marksonsparks.com or call Max Markson on 0412 501 601.