As inflation falls, real interest rates rise.

ECONOMIST: European Central Bank

The answers to those questions can be found by examining whether the rise in nominal rates is also accompanied by rising real interest rates and if the rise in the dollar is due to a decrease in its supply.

FORBES: Gold's Allure Tied to Interest Rates

It was hoped that investors would reward this by letting interest rates fall and the real rise, thereby making the government's financing costs more bearable.

ECONOMIST: Lula's balancing act

Most gold investors believe that gold has a limited downside , at least until interest rates begin to rise enough to cost them real money in carrying their positions.

FORBES: We're Still In The Midst Of A Multi-Year Gold Bull Market

This month's letter, in fact, outlines the very real possibility that the real-estate bubble is ready to burst with the next sustained rise in interest rates.

FORBES: Say Good Buy To October Lows

With the nominal exchange rate held down by intervention, this could only come about through a rise in prices, creating expectations of future inflation and so reducing real interest rates.

ECONOMIST: The yen