Roadwarrior
Member
D
Last edited:
Over the past decade we have elected the people who have allowed this inflation to plague us. often we re-elect them.
I took that to mean .9% over the inflation rate.Sounds like thats small returns.
I'm getting 5.50%, payable monthly for 5 years, plus CD's between 5.15% and 5.25% on a CD Ladder.
Why are folks saying 0.9% is good?
Nobody says 0.9% is good. I am saying the inflation rate plus 0.9% guaranteed for 30 years is a good (not perfect) way for ordinary people to counter inflation. The fixed Ibond rate is added to the variable inflation rate for the past 6 months. The treasury will adjust the inflation rate every six months to keep it current. The fixed rate remains the same for the life of the Ibond.Sounds like thats small returns.
I'm getting 5.50%, payable monthly for 5 years, plus CD's between 5.15% and 5.25% on a CD Ladder.
Why are folks saying 0.9% is good?
Massive government deficit spending is inflationary. Too much money seeking too few goods. People bid up the price.I didn't realize the government controlled the economy. And inflation raged around the world leading one to suspect it was beyond ANY government's control.
Companies pushed profit and people kept buying.......
Massive government deficit spending is inflationary. Too much money seeking too few goods. People bid up the price.
Yes, economic issues are not as simple we would like them to be, and it's easy to point to a pet peeve and say, "There is the reason.""too few goods" - yup
"many European countries provided far less assistance to their economies when Covid-19 hit. However, these countries are also staring down the double-barrel of low supply and inflation ranging from 2.5% to nearly 80%. That suggests that supply chain issues and other outside factors, rather than government stimulus, may have boosted inflation."
Forbes article on gov spending and inflation
Yep, and for a lot more than a decade.Over the past decade we have elected the people who have allowed this inflation to plague us. often we re-elect them.
Did you vote for Putin?Yep, and for a lot more than a decade.
I like they way you put it, the blame falls squarely on us, we get who we vote for...
No, but but I believe he and the Ukraine war are just a drop in the bucket, when it comes the US inflation. I believe the heart of the problem is deficit spending, and we've been on that train most of my adult life. Few politicians from either party have made any real effort to stop it, not in 40 years anyway...Did you vote for Putin?
Interesting thoughts on the topic hereNo, but but I believe he and the Ukraine war are just a drop in the bucket, when it comes the US inflation. I believe the heart of the problem is deficit spending, and we've been on that train most of my adult life. Few politicians from either party have made any real effort to stop it, not in 40 years anyway...
I use Schwab for CD's. I build a 12 month ladder. 3,6,9,12 month payable monthly or when matured.I took that to mean .9% over the inflation rate.
I haven't actually seen a CD above 5% yet, but then I haven't been everywhere. IBonds were somewhere around 7% last I looked, and while the OP is gone now for some reason, I will say that the Government Bonds site is not the most intuitive program I've ever seen. It does work almost flawlessly, but as for being user friendly, I would call it "not good." When you finally figure it out, it does make sense, but I would have designed the site differently.
Thanks, but I think that explanation of borrowing to support deficit spending is incomplete. Government borrowing competes with private borrowing driving the interest rates, and inflation.Interesting thoughts on the topic here
Yep, and we keep electing them...As far as our politicians they are bought and paid for by special interest groups primarily funded by the super wealthy through business lobbying or directly into super pacs.
I can't make these predictions, but I've picked up the idea that the Fed is nearing the top of it's planned rate increases. It seems to me that the current rate is more of where it was in most of my borrowing days. It's higher than the last 10 years, but that last10 years seems like the anomaly. I wonder if others see it that way. I can't remember a time when the average savings account paid 12 cents a year on a thousand dollars.I use Schwab for CD's. I build a 12 month ladder. 3,6,9,12 month payable monthly or when matured.
Don't want to lock in too much because rates may go higher.
Well the distinction I found most relevant was the difference btwn borrowing real money from the sale of bonds vs printing money resulting in an increase in the overall supply of $. Borrowing took as much, if not a little more w interest $ out of the money supply it was just it different hands. IMHO, that would not be inflationary even though it contributes to the deficit.Thanks, but I think that explanation of borrowing to support deficit spending is incomplete. Government borrowing competes with private borrowing driving the interest rates, and inflation.
Yep, and we keep electing them...
I just checked my bank today CD rates are now up to 5%. Earlier in the week, they were at 4.25%. And my bank doesn't have the highest rates out there, but I'll probably get them there, anyway, just for convenience. I'm only going tie part of them up until December when I can buy another iBond.I use Schwab for CD's. I build a 12 month ladder. 3,6,9,12 month payable monthly or when matured.
Don't want to lock in too much because rates may go higher.
In college I took an economics class from a professor of some note. He had been invited to address Congress on issues like this. He had lost an arm in an accident. When asked why him, he said Hubert Humphrey invited him because too many economists answered questions with "one one hand ... and on the other ...". Humphry told him they looked long and hard for a one handed economist.There are a number of opinions to be found at that link so there are many ways to look at it.
Ain't that the truth. It seems like economics would normally lend itself to numbers and equations, and it probably could in many ways. But load it with politics, and it's about as useful as propaganda.About sums up what I think of most economist's opinions, always interesting to listen to, but there are more opinions than economists.
A CD Ladder is when you invest in CD's over a period of time where each CD in the Ladder matures at different timeframes. 3 months, 6 months, 9 months, 12 months, for a 1 year ladder. Each has different %'s of return. Right now I have 1 year ladder that ranges from 5.15% to 5.25%. You can also build CD ladders for as many years you want.I just checked my bank today CD rates are now up to 5%. Earlier in the week, they were at 4.25%. And my bank doesn't have the highest rates out there, but I'll probably get them there, anyway, just for convenience. I'm only going tie part of them up until December when I can buy another iBond.
Can you explain what you mean by buying them in a 3 6 9 12 ladder? I don't know what that means or what the reason for it is.