Potential debt crisis and real estate?

[Moses K.]

Just wanted to see what some of your thoughts are on the debt crisis and how it will affect real estate in this next cycle. 

There are a couple of things I'm seeing now: 1) crisis in Europe and to a lesser extent Asia is sending capital to the U.S. For now, we're the only game in town, which is a big reason why real estate and stocks are getting bid. 2) Interest on our debt compounds even with a balanced budget, and that runs on an exponential growth curve. 3) Rising interest rates are probable on a cyclical basis after 30 years of a bull market. 

I am certainly not in the hyperinflation camp, because historically that has never happened with the core currency (U.S. dollar), only peripheral currencies. But this is the first time we've seen a sovereign debt crisis globally since the 1930's, so this is bound to affect real estate domestically. 

How would one prepare as a real estate investor?