tag:blogger.com,1999:blog-6412381.post2673508004874658957..comments2024-03-26T15:38:24.963-04:00Comments on BETWEEN THE HEDGES: Thursday WatchUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6412381.post-59116868586378414082013-12-05T04:57:34.014-05:002013-12-05T04:57:34.014-05:00Bloomberg reports a major fallout of the rise in t...<br />Bloomberg reports a major fallout of the rise in the Benchmark Rate Aussie Bonds fall strongly. For years, Australia dividends, coming from Australian Government Debt, and Westpac Banking, and other high yield sources has been bundled into the AUSE ETF, and today, it’s recent daily chart shows a 1.3% lower to support at the edge of a huge head and shoulders pattern at 57.66. It’s monthly chart going back to 2009 shows how the US Fed monetary policy of QE restarted global investment. And its daily chart shows how the rise in the Benchmark Rate, ^TNX, destroys fiat wealth in the Australian Dollar, FXA, natural resource, that is Global Industrial Mining, PICK, Iron Ore Miner, BHP. US Fed interventionist policy inflated currencies under liberalism with the result of rewarding investors; but now with the failure of fiat money, that is Credit, AGG, and Currencies, such as the Australian Dollar, FXA, the bond vigilantes are destroying fiat wealth, and introducing authoritarianism. <br /><br />Liberalism featured inflationism coming from the creation of fiat money; it was the age of investment choice and credit. Another word for credit is trust. Investors trusted in the monetary policies of the central bankers, and schemes of debt trade investing and currency carry trade investing, to create prosperity, all for the purpose of corporatism, commercialism, and globalism. <br /><br /><br />But authoritarianism, introduced by Jesus Christ on October 23, 2013, with the bond vigilantes calling the interest rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, terminated the banker regime and introduced the beast regime, features destructionism coming from the death of fiat money and the introduction of diktat money. It is the age of diktat and schemes of debt servitude. Debt serfs trust in the economic policies of nannycrats to enforce austerity, all for the purpose of regionalism. <br /><br /><br />Today, December 4, 2013, the bond called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.84%, with the result that the chart of Aggregate Credit, AGG, and Mortgage Backed Bonds, MBB, manifested a severe breakdown. Clearly Fed monetary policy to maintain the value of these bonds has failed. An inquiring mind asks, will the value of US Treasuries, TLT, hold at the current level?<br /><br /><br />Zero Hedge reports The Fed now owns 1/3 of the entire US bond market. I add that much of that is in Distressed Investments, such as those traded by Fidelity's FAGIX mutual fund, which the Fed acquired in 2009, with the trade out of “money good” US Treasuries for all kinds of horrific debt owned by the banks, so as to restart the global economy and benefit the investor. <br /><br /><br />With the Fed owning such a large amount of US Debt, such as Distressed Investments, FAGIX, Ten Year Government Bonds, TLT, and Mortgage Backed Bonds, is there any “money good” at the Fed? <br /><br />theyenguyhttps://www.blogger.com/profile/08515095308836729043noreply@blogger.com