If you have been following this blog for any length of time you know that I have been maintaining the following view. The 10-Year Note should put in at least a double bottom at around 1.5% before reversing and staging a multi decade rally in yields. For instance, 10-Year Treasury Note Screams Out “Recession Ahead”. Are You Listening?

The good news is, I am not the only one who thinks this way.

Wall Street guru who has been nailing the interest-rate story just made a jarring prediction for 2016

Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy bonds in its QE [Quantitative Easing] program. The forecast for a ‘bowing-in’ of curves reflects our opinion that a long period of unconventional policy will create an unconventional outcome. Central banks did not forecast the persistently weak growth or recent decline in inflation. So data dependency does not easily justify lifting rates from the zero-bound — it might suggest the opposite.

Listen, this is rather simple. The FED will not raise interest rates anytime soon. Plus, we are on a verge of an “official” recession. In addition to the stock market being in a massive bubble. All of that suggests lower rates.

Yet, the best piece of evidence we have is as follows. 35+ year bear markets in yields do not end in a V shape fashion. We typically see double and triple bottoms. And while I often talk about this bottom, I rarely talk about what happens next.

Based on my mathematical and timing work, I expect yields to surge for at least a few decades. We will be facing an interest rate environment that started in 1949 and terminated in 1979. Most likely in a compressed form as I expect the FED to pull out all of the stops in the monetization attempts. No other outcome is possible as we now have too much debt. Debt that we will never repay in full.