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<p>[QUOTE=&quot;doug444, post: 1501511, member: 38849&quot;]MedoraMan, where in the world did you get the idea that bonds maintain purchasing power???&nbsp; Only the TIPS do that, and the adjusted inflation numbers are cooked to insure that you lose purchasing power with them too, only not as much.</p><p><br /></p><p>Right now, Treasuries are yielding something under 3%, I don&#039;t know the exact number.&nbsp; You are betting that inflation will be 3% (or less) over the life of the bond.&nbsp; And at 3%, you merely break even (and lose money, after you pay income tax on the interest).</p><p><br /></p><p>When hyperinflation comes, let&#039;s be optimistic and say only 10% a year, the price PAID for your 3% bonds will be massively discounted, and you will lose your BUTT.&nbsp; That&#039;s what happens when market interest rates go up, or inflation surges -- same result, different causes.[/QUOTE]</p><p><br /></p>

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