Chris Rupkey, chief financial economist at Mitsubishi UFJ Financial Group, in an email blast Friday wrote that "rates will never go up again."
This is completely absurd. You have to believe that the Fed can print money forever without price inflationary consequences or that, if price inflation does climb to 5%, 10%, whatever, that the Fed won't raise rates under these conditions. These scenarios make no sense.
The lack of fundamental; understanding of what the Fed can and can't control is quite stunning, even among some pretty good Austrian school thinkers. I named and discussed one in Friday's EPJ Daily Alert.
I have never seen such an across the board perspective in decades of watching markets. When the turn occurs, on rates and inflation, it is going to be spectacular. There is almost no one ready for it or believes it will happen quickly. It is going to take nearly everyone by surprise.