61–70 of 190 posts
Earlier quoted context omitted.
It’s about as safe an investment you can make and it’s a super high yield.
But the rate is only for 6 months and limited to $10000 per SSN per year, which does not make it terribly useful.
Inflation doesn't just go from 1% to 1000% in a year, it has its own growth rate and takes years to develop. If you're worried about inflation, you should be looking at yearly growth, like 5% this year, 10% 2022, 20% in 2023, etc. This became a problem in those places because for various reasons, those societies were utterly dysfunctional and could not react and contain it.
This doesn't mean what people think it means. They adjust the inflation rate every 6 months https://www.treasurydirect.gov/indiv/research/indepth/ibonds... . Right now it yields 7.12% because the last inflation number was really high, but once inflation goes back to normal, the yield will be much lower.
Right. The real question is : when will it abate? Is it transitory as they unflinchingly claimed or are we in the Carter Years?
Your point seems mostly like demagoguery. I think the more interesting question is... is 5% actually bad? There's a real argument to be had here that rapid inflation reflects genuine improvements like rising wage levels and that it's worth paying for. Remember that the "biggest losers" in inflationary economies are people who hold assets, not investors (whose returns accomadate faster than things like loan terms) or wage workers (who don't have significant assets to depreciate and whose wages track inflation well).
Is their site right that the maximum yearly purchase is $5k/$10k paper/electronic? That's... not very much.
Does anyone want to explain why this is an interesting story?
Proof that the inflation we are experiencing is structural not transient.
Have these ever lost money ?
7% yield is outrageously good assuming you can't lose money. Then again US currency might be worthless if they default on these.
Earlier quoted context omitted.
Right. The real question is : when will it abate? Is it transitory as they unflinchingly claimed or are we in the Carter Years?
When the real shock of COVID disruption abates. Which is .. not looking great at the moment.
If you want to see what market thinks, follow:
Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Inflation-Indexed https://fred.stlouisfed.org/series/DFII10
Currently at -1%