Deflation, Disinflation, Inflation, Stagflation, ???

Today we got the March 2011 CPI inflation data and it shows that the FOMC has won (for now) the disinflationary battle they undertook with the QE2 program. The year-over-year core inflation rate has now risen for six consecutive months. The March figure of 1.19% is the highest year-over-year core inflation rate since a 1.34% [...]

Zero Nada Nil …. or 1.5% ?

For conservative investors, now is about the most difficult time ever to earn a safe return on your cash. Short-term Treasuries offer almost no return. Savings accounts, Money Markets, even CDs are offering extremely low rates. Many investors will receive monthly statements showing a 0% return for their money market account in January and a [...]

Savings Bonds? Remove the limits!

Today, the U.S. Treasury announced the updated Series I and Series EE Savings Bond rates. Series EE savings bonds purchased between November 2009 and May 2010 will earn a 1.2% fixed rate.  Series I Bonds purchased between November 2009 and May 2010 will earn a 3.36% annualized composite rate. The I Bonds composite rate consists [...]

Q & A

The following e-mail Q/A may be helpful to others… Hi Bill, The answer to your question is no. The I Bond pays a rate called a composite rate, which is based on two separate components. The first component is called the fixed rate, which remains the same for the entire life of the bond. The [...]