Imagine what would happen in Europe if interest rates went up...

Imagine what would happen in Europe if interest rates went up say 2%.

If you look through the whole thing logically there is no way interest rates will be allowed to climb at a time when outstanding debt is enormous. Rising interest rates would create a wave of sovereign defaults.

Equity markets would crash

Then of course the FED would lose billions on their asset holdings, Japan would sink and the US deficit would look like the GDP of China.