According to the "experts", if interest rates rise 2 or 3 per cent, the US government would "not be able to pay its obligations"
IF, that is true, then the government will have to do something
1. default
2 "significantly" raise taxes and "possibly" reduce spending
3. massively increase inflation. (you still get your government check of $1000. but milk and bread cost $750.)
If the Liberal/Democrats/Big Government types have their way, they will "significantly" raise taxes but keep spending money like a drunken sailor.
(The "reason" is: if you control one million dollars, "that is good". Controlling one billion dollars is "better". Control one (or 17)Trillion dollars, and "we tell you when to sit down and shut up". North Korea, USSR, Mao Tse Tung, Hitler among others)
Any major disruption will "shake" investor confidence There will be a flight to quality (whatever that is - gold, silver, guns, ammo, MRE's, bottled water, first aid medical supplies or a cave in the mountains)
The stock market's value is based on buyers having money and wanting to "invest". No buyers, no money, no desire to invest and you have a crash to end all crashes. ("we have met the enemy... and he is us." Pogo)
Do you think interest rate hikes will halt this melt up in the American equities market? Do you think a slight interest rate hike may cause short term pull back but will re-inflate, because rates will still be "low". I really wanna hear different hypotheses so feel free to share even the most outrageous possibilities, beside WWIII.