{"id":157,"date":"2011-08-10T16:27:28","date_gmt":"2011-08-10T20:27:28","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=157"},"modified":"2011-08-10T16:27:28","modified_gmt":"2011-08-10T20:27:28","slug":"fire-the-fed-and-replace-them-with-a-rating-agency","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/","title":{"rendered":"Fire the Fed &#8230;&#8230; and replace them with a Rating Agency"},"content":{"rendered":"<p>On 1 November 2010 the Fed commenced QE2, purchasing US Treasurys with the stated intention of reducing long term interest rates. Over the next 4 months, 10-Year Treasury yields <span style=\"text-decoration:underline;\">rose<\/span> by 120 basis points (1.20%).<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png?w=525&#038;ssl=1\" alt=\"10-Year US Treasury Yields\" \/><\/p>\n<p>Why do we need the Fed, who can&#8217;t punch their way out of a paper bag, when a rating agency (S&amp;P) can send yields plunging 65 points in less than two weeks. \ud83d\ude42<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 1 November 2010 the Fed commenced QE2, purchasing US Treasurys with the stated intention of reducing long term interest rates. Over the next 4 months, 10-Year Treasury yields rose by 120 basis points (1.20%). Why do we need the Fed, who can&#8217;t punch their way out of a paper bag, when a rating agency &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Fire the Fed &#8230;&#8230; and replace them with a Rating Agency&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-157","post","type-post","status-publish","format-standard","hentry","category-debt-levels"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fire the Fed ...... and replace them with a Rating Agency - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fire the Fed ...... and replace them with a Rating Agency - the patient investor\" \/>\n<meta property=\"og:description\" content=\"On 1 November 2010 the Fed commenced QE2, purchasing US Treasurys with the stated intention of reducing long term interest rates. Over the next 4 months, 10-Year Treasury yields rose by 120 basis points (1.20%). Why do we need the Fed, who can&#8217;t punch their way out of a paper bag, when a rating agency &hellip; Continue reading &quot;Fire the Fed &#8230;&#8230; and replace them with a Rating Agency&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2011-08-10T20:27:28+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/static.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Fire the Fed &#8230;&#8230; and replace them with a Rating Agency\",\"datePublished\":\"2011-08-10T20:27:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\"},\"wordCount\":74,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png\",\"articleSection\":[\"Debt Levels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\",\"name\":\"Fire the Fed ...... and replace them with a Rating Agency - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png\",\"datePublished\":\"2011-08-10T20:27:28+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#primaryimage\",\"url\":\"https:\/\/www.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png\",\"contentUrl\":\"https:\/\/www.incrediblecharts.com\/tradingdiary\/images\/2011-08-11-tnx.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2011\/08\/10\/fire-the-fed-and-replace-them-with-a-rating-agency\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Fire the Fed &#8230;&#8230; and replace them with a Rating Agency\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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A Fed taper would slow the rate of purchases of Treasuries and MBS from the current $140 billion per month. Fed QE When the Fed expands its balance sheet, it purchases Treasuries and mortgage-backed\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26249,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/06\/10\/treasury-yields-fall-ahead-of-may-cpi\/","url_meta":{"origin":157,"position":1},"title":"Treasury yields fall ahead of May CPI","author":"Colin Twiggs","date":"June 10, 2021","format":false,"excerpt":"10-Year Treasury yields broke support at 1.50, warning of a correction. The breach comes ahead of the May CPI release later today, anticipating weaker inflation data after lackluster payroll growth reported last week. The 10-year breakeven inflation rate eased to 2.32%, from recent highs above 2.50%. But Pippa Malmgren points\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"10-Year Treasury Yield","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-06-10-tnx.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":43480,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/08\/17\/the-elephant-in-the-room\/","url_meta":{"origin":157,"position":2},"title":"The Elephant in the Room","author":"Colin Twiggs","date":"August 17, 2023","format":false,"excerpt":"The 10-Year Treasury yield broke through resistance at 4.25%, signaling a fresh advance. Target for the advance is 5.25% (4.25% plus 1.0%) but first expect retracement to test the new support level. Respect would confirm the breakout. The Russell 2000 Small Caps ETF broke support at 190, warning of a\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"10-Year Treasury Yield","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-08-16-tnx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-08-16-tnx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-08-16-tnx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":23196,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/12\/12\/real-interest-rates-and-the-dollar-belie-gold-weakness\/","url_meta":{"origin":157,"position":3},"title":"Real interest rates and the Dollar belie Gold weakness","author":"Colin Twiggs","date":"December 12, 2020","format":false,"excerpt":"The 10-year TIPS yield weakened to -0.96% on Thursday, compared to -0.94% last week. The Fed balance sheet is expanding slowly which would not exert much downward pressure on yields. But commercial bank holdings of Treasury and Agency securities are rising steeply. Negative Treasury yields increase demand for Gold as\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29621,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/12\/05\/sp-500-beware-the-taper\/","url_meta":{"origin":157,"position":4},"title":"S&#038;P 500: Beware the taper","author":"Colin Twiggs","date":"December 5, 2021","format":false,"excerpt":"Jay Powell recently changed tack and is talking about accelerating the taper of Fed purchases (of Treasuries and MBS): Federal Reserve Chairman Jerome Powell indicated Tuesday that the central bank could step up the removal of its efforts to boost the economy as it battles escalating inflation pressures. In an\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"10-Year Treasury Yields","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-12-04-10y.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-12-04-10y.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-12-04-10y.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2021\/2021-12-04-10y.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":40849,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/02\/13\/stocks-retreat-as-treasury-yields-rise\/","url_meta":{"origin":157,"position":5},"title":"Stocks retreat as Treasury yields rise","author":"Colin Twiggs","date":"February 13, 2023","format":"link","excerpt":"The S&P 500 retreated from resistance at 4100. Reversal below 4000 would warn of another test of primary support at 3500. We remain in a bear market, with 12-month Rate of Change below zero. The recent rally was caused by falling long-term yields, with 10-year Treasuries testing support at 3.5%.\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"S&P 500","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-13-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-13-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-13-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=157"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/157\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}