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A comment on On anti-crypto toxicity. Parent comment

Re:On anti-crypto toxicity by JumpCrisscross on Wednesday April 20, 2022 @11:56AM (#31098819)
> no perfect asset like that exists, so it's worse than that

TIPs [1] come damn close. The interest is subject to federal tax, but you're still coming out ahead.

[1] https://www.treasurydirect.gov/instit/annceresult/annceresul...

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Re:On anti-crypto toxicity by reedjosh on Wednesday April 20, 2022 @01:07PM (#31099952)
> TIPs [1] come damn close

TBH I don't know too much about them, but from what I'm seeing they're something like 1-2% interest. Inflation is > 8% right now per the government's own numbers

https://www.bankrate.com/rates/interest-rates/treasury/

Am I mistaken? If so, I'd love to find a way to get guaranteed inflation beating returns.

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Re:On anti-crypto toxicity by JumpCrisscross on Wednesday April 20, 2022 @02:19PM (#31100909)
> from what I'm seeing they're something like 1-2% interest. Inflation is > 8% right now per the government's own numbers

That's a real yield. TIPs "adjust in price (principal amount) in order to maintain their real value" when inflation rises [1].

So if you buy a TIP for 100 that pays 2%, and inflation is 8%, the face value is adjusted to 108 and you get a 2.16 coupon. (Super simplified, to the point of being technically incorrect, but framework-wise fine.)

[1] https://www.investopedia.com/terms/t/tips.asp

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Re:On anti-crypto toxicity by reedjosh on Wednesday April 20, 2022 @03:06PM (#31101470)
Thanks! I'll do some more research.
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