Originally Posted by Cute Fuzzy Bunny
So much for those ~1% ibonds returning anything...
What's the little idea?* *I thought this was the emoticon-only thread.* *Oh, you have a thought you'd like to express.* *OK.*
If I follow your smiley-logic, you're suggesting that the BLS might change the way the CPI is calculated to reflect the wide-spread belief among economists that the CPI overstates inflation.* *And you believe this will reduce the yield of CPI-indexed bonds.* *Is that it?
Don't worry.* *Be happy.* *If the CPI-U calculation ever changes in such a way to lower reported inflation vs the old calculation, the law says that the treasury must increase the yield of the outstanding bonds to compensate.
So, basically, this means that CPI-indexed bond holders are getting a better deal than they thought.* * If you believe those conspiring economists, anyways.