I-Bonds Discussion Thread (continuation of the FW thread)

If you’re still single, is there a way to create a trust for the exclusive purpose of purchasing an I-Bond? I already got the $10K for 2022.

Buy More I-Bonds in a Revocable Living Trust


Buy (More) I-Bonds for Your Business



Prediction of double digit return following November rate reset


Note: the above is dated 18 July 2022


The only way you never pay the tax is if you never want to spend the $$. What’s the purpose of holding if you never plan to use?

In life, matters do not always go to plan.

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Unless you plan to die the day you go broke (and somehow manage to successfully execute that plan), you are always going to have some money that goes unspent.

But I’m pretty sure that your estate will still have to pay tax on any accrued interest that hasnt been reported/taxed yet.

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Sure, some money but its weird to me to get overly excited about that aspect.

When you’re old, what else is there to get excited about besides knowing you can afford to live a few additional minutes…

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CPI-U change for July is zero, even slightly negative, what a surprise :exploding_head:
For 4 months together we have 3.05%, that corresponds to 6.10% for next six months for I-Bonds. Question remains for August and September as we can potentially see them with negative numbers which will eat into the next I-Bond rate


almost all this is due to the drop in price of gasoline. The Biden administration is releasing hundreds of millions of barrels of oil from the strategic petroleum reserve. This is had a pretty strong effect on the global price of oil. By some coincidence the release will end on November 1 shortly before the election.


“Releasing hundreds of millions” sounds like a lot. The actual total will be < 2 hundred million (1M / day for 180 days).

And while I agree that it had an impact on oil prices (which was the intent), the stronger USD and the possibility of reduced demand in case of a recession likely also have an impact.


if you look at the graph in my post, the recent drop in oil prices began soon after the time when the Bidenistas started selling oil in March of this year.

My point, and the relevance to this thread, is that the sale will end on November 1, 2022. I do not expect a repeat of the drop in the headline CPI in the coming months.

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And, the increasing prices that keep the inflation rate high are largely one time increases, once the seller was no longer able to hold out any longer - like, something that’s cost $1.20 for years suddenly jumping to $1.97, but then stays there. We’re going to start running out of products that have yet to take such a hike, which alone will bring the inflation rate down some.

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I’m looking, but your graph isn’t very precise. It looks like there was a drop in March, but then it rose again back to the same level in May, then started dropping again (in May). IIRC that was when the FED started raising rates (leading to stronger USD and recession fears).

Why? if you look at the CPI data, food prices have kept on increasing. Part of that increase is the price of diesel fuel but there are other costs especiallt labor.

Beyond food prices, the tight labor market is affecting the whole economy especially the service sector. And that sector is a large part of our economy.

The sainted Milton Friedman said that inflation is everywhere and at all times a monetary phenomenon and the world economy is awash in cash. The Democrats’ spend-a-Palooza bills will pump hundreds of billions more cash into the economy.

Yes the IRS will hire 87,000 ravenous revenue agents but it’ll take a while. The main targets, small business owners and middle-class individuals, can hire lawyers and accountants too.

I imagine deliberately underfunding the IRS is a shadow tax cut. At least for dishonest or overly complex returns.


General overview of the July CPI and I bond update.

As I said elsewhere, I am bullish on future month CPI changes since commodities fell a ton last month and if that’s what it takes to keep the CPI flat, oil will be back to negative prices by the time they stop dumping the SPR right after midterm elections.


Oil prices may start increasing before the election.

  • Record-high prices for natural gas in Europe are prompting power generators to burn oil instead, the IEA said Thursday.
  • The agency raised its global oil demand forecast for 2022 by 380,000 barrels a day due to that increased consumption.
  • The EU is looking to cut its dependency on natural gas as Russia chokes off supply in response to sanctions.
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I got curious about the magnitude of the oil consumption numbers. Unless I am missing something, the strategic petroleum reserve sales are the proverbial drop in the bucket amounting to about one day’s United States consumption.