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0 pointscma3y ago0 comments

> Now that the government itself is providing that outlet

Inflation adjusted nothing the government is selling is earning other than I-bonds (individual yearly buy limit of $15K). With Trump's energy output restriction deal with Saudi and others expiring inflation may slow, but the situation of gas in Europe over the winter seems poised to keep it up (CPI doesn't include energy directly, but it feeds back in).

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boole18543y ago

> Inflation adjusted nothing the government is selling is earning other than I-bonds (individual yearly buy limit of $15K).

Inflation-indexed long term US treasuries are now earning positive rates of interest. See https://fred.stlouisfed.org/series/DFII30 -- it's not necessarily a high rate (currently 1.74% after inflation with a 30-year term), but when you have millions or billions to invest, it's certainly not nothing.

> (CPI doesn't include energy directly, but it feeds back in).

CPI does directly include energy, including gas [1]. You may be thinking of "core CPI" which excludes energy and food prices.

[1] https://www.bls.gov/news.release/cpi.nr0.htm

cmaOP3y ago

You're right about CPI and core CPI, and I didn't realize TIPS went that positive recently. Since the inflation adjustment gains are taxed I still don't know that you could come out preserving wealth at current inflation rates, unless it is held in a completely tax free account like a Roth.

sangnoir3y ago

IIRC, individual I-bond purchases are are limited to $10k p.a. - not $15k

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