isn’t high inflation the only way to pay off all our debts?.....of course that means the govt workers will be making about a million dollars a year...
So we take a bunch of out-of-work people and make their day-to-day living expenses higher? Can someone take the ball away from the Fed?
The problem, as I see it, with TIPS is that they are adjusted for inflation as reported by the government, which consistently under-estimates how quickly the value of the dollar is declining. I bought a fairly small amount of Series I US savings bonds half a dozen years ago, and they have accumulated almost no interest since then. They supposedly protect my principal against inflation, and the dollar has declined at least 20% over that time, relative to other currencies and to a broad range of commodities. But by the highly restrictive way that the Federal Government defines and measures inflation, we haven’t had any.
This is frightening; I hope November’s elections really show just how angry people are...
I’ve been anticipating inflation for 5 years now and all I’ve gotten is deflation.
Is this supposed to act as a hedge against inflation? I suppose only losing 0.55% per year in these bonds is better than basically losing 5-10% of your cash per year due to the same level of inflation. The higher the inflation, the better off your cash is with these bonds.