I-bonds plummeted

[Gary_Yngve]

 

They went from 6.7% to 2.4%. What the heck? That makes them worthless, as short-term CDs are higher than that.

 

I thought they were a good way for the middle class to invest ($30k limit per year) and a good way to pass money to your inheritors without tax. And a good way to keep debt out of China's hands.

 

Sounds like someone screwed up big-time.

[layton]

yeah, whoops, i mean,.....er,....sorry.

[G-spotter]

oh man, not only does he get lost on super slab, but he thinks that grad students are middle class!

[AlpineK]

Psst...Dru, he's trying to change the subject.

[EWolfe]

At least he is on firmer ground than the humor effort.

[billcoe]

 

They went from 6.7% to 2.4%. What the heck? That makes them worthless, as short-term CDs are higher than that.

 

I thought they were a good way for the middle class to invest ($30k limit per year) and a good way to pass money to your inheritors without tax. And a good way to keep debt out of China's hands.

 

Sounds like someone screwed up big-time.

 

Motherfuckers are reaming us poor people out again. The bonds are tied to inflation. WTF?

[willstrickland]

WTF is that govt measures of inflation, whether CPI, core CPI, PEI, or any others are designed to understate inflation by stripping out everything that is rising in price. Allows the govt to borrow at lower rates, and degrade the fiat currency at will with minimal repercussions. You can thank Nixon for taking us off the gold standard, allowing craven politicians to effectively run the printing press at will, and the Greenspan era FED for throwing money around like a drunk sailor.

 

Value of the pre-Federal Reserve era (i.e. circa 1914) dollar today...$0.14.

 

The US dollar is backed by nothing other than the hollow promises of politicians (i.e. the "full faith and credit of the US") which means fuck-all when they expand the monetary supply beyond the growth rate of GDP.

 

You can maintain the quality, or quantity of a fiat currency, but not both.

 

Rep. Ron Paul (R-TX) is about the only person in your congress that understands the game. This speech is worth reading:

 

http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

 

NEVER buy govt debt tied to inflation, as it will be understated and in real (i.e. inflation adjusted) terms, you will lose purchasing power.

[billcoe]

I need to look at this further. Gas has gone up, as has trucking anything anywhere. Stores are passing that onto consumers.

 

House prices and cars have gone up. The Consumer price index was up .4% in March alone.

 

 

 

Will, what do you recommend for investments, given the current climate.

[Dechristo]

vaseline

[olyclimber]

[foraker]

looks interesting. thanks willstrickland!

[Gary_Yngve]

Wow, that's a cool article!

[StickBoy]

WTF is that govt measures of inflation, whether CPI, core CPI, PEI, or any others are designed to understate inflation by stripping out everything that is rising in price. Allows the govt to borrow at lower rates, and degrade the fiat currency at will with minimal repercussions. You can thank Nixon for taking us off the gold standard, allowing craven politicians to effectively run the printing press at will, and the Greenspan era FED for throwing money around like a drunk sailor.

 

Value of the pre-Federal Reserve era (i.e. circa 1914) dollar today...$0.14.

 

The US dollar is backed by nothing other than the hollow promises of politicians (i.e. the "full faith and credit of the US") which means fuck-all when they expand the monetary supply beyond the growth rate of GDP.

 

You can maintain the quality, or quantity of a fiat currency, but not both.

 

Rep. Ron Paul (R-TX) is about the only person in your congress that understands the game. This speech is worth reading:

 

http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

 

NEVER buy govt debt tied to inflation, as it will be understated and in real (i.e. inflation adjusted) terms, you will lose purchasing power.

 

Great post willstrickland. Another reason for the manipulated inflation rate is to control cost of living allowances for all the government entitlement programs. As for my opinion (even though I wasn't asked) for what to invest in is to invest in what has always been and will always be real money. Also, the commodities markets have been, and I believe, will continue to be on fire. JMHO.

 

Mike