Originally Posted by Faye
Bonds, especially I bonds, don't even see any reason to buy EEs, are a great deal. The yield is not just the rate you get, you will also have to add in the inflation for it's true yield...Currently inflation is low, but just you wait. With the way our government is spending money we don't have. Can't see how to avoid high inflation.
Correct except for two factors: a) the inflation adjustment will badly lag any serious increase in inflation, and b) the EE rates are market-based, and will also climb with inflation, maybe faster than the I rates (given that markets anticipate rather than measuring the past).