1. World countries will raise rates to try and combat US rate rises because as their currency falls against the USD they have sufferend from increased inflation.
2. Australia will need to raise rates and this could result in rates passing 8% and create a liquidity crisis.
3.Higher rates will result in unexpected defalts of large companies that dominate our ecomomy..
4 ATO will send thousands bankrupt through fines, and debt collection.
5. There will be a revaluation of the ASX as demand for higher yield increases.
6 Superfunds will be hammered which will slow the economy more and result in record housing defalts as multi source income streams deteriorate. .
7 There will be a spiral of bad debt, lack of liquidity, massive job losses.
8 Increasing in immigration and foreign studients will result in the return of cheap scab labour.
9 Slowing ecomomy and cost price squeeze will lower yield.
Outcome High interest rates, slowing ecomomy, demand for increased yeild, hgher inflation, cost price squeeze will likely wipe 30 to 50% off the ASX, Yield demand for the asx companies should reach 8 to 12% to combat inflation and compete with interest rates.
