treasury securities http://www.wisebread.com/taxonomy/term/9049/all en-US Debt Ceiling Contingency Plans http://www.wisebread.com/debt-ceiling-contingency-plans <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/debt-ceiling-contingency-plans" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/civil-war-eagle.jpg" alt="Eagle statue" title="Eagle statue" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>What will the Treasury do if there's no increase in the debt ceiling? What should you do?</p> <p>Back in April I wrote a post about <a href="http://www.wisebread.com/stalemate-on-the-debt-ceiling">what would happen if the debt ceiling were not raised</a>. I suggested that the Treasury could deal with a cash shortage the same way Illinois had &mdash; by delaying some payments and prioritizing others. I also suggested that Congress, seeing the Executive branch grab all that power, would move quickly to end that experiment.</p> <p>Looking back, even though I intended that post to be a bit tongue-in-cheek, I'm thinking I was a bit blasé about the whole thing. (See also: <a href="http://www.wisebread.com/the-debt-ceiling-crisis-in-everyday-english">The Debt Ceiling Crisis in&nbsp;Everyday English</a>)</p> <h2>Can the Treasury Prioritize?</h2> <p>Everyone has been assuming that the Treasury will respond by prioritizing certain payments &mdash; interest on the debt will be paid, social security will be paid, soldiers will be paid &mdash; and that other bills will be deferred.</p> <p>The Treasury has been at pains to refute this assumption:</p> <blockquote><p>Treasury officials have maintained that the department lacks formal legal authority to establish priorities to pay obligations, asserting, in effect, that each law obligating funds and authorizing expenditures stands on an equal footing. In other words, Treasury would have to make payments on obligations as they come due. &mdash; <a href="http://www.fas.org/sgp/crs/misc/R41633.pdf">Reaching the Debt Limit: Background and Potential Effects on Government Operations</a> (PDF)</p> </blockquote> <p>Beyond statements like that, the Treasury (and the Federal Reserve) have been quite steadfast about refusing to discuss contingency plans.</p> <p>This is primarily a tactical move. Their position is that not raising the debt limit is unthinkable. Any indication that they're thinking about it would tend to undermine that position.</p> <p>Still, their position is not unreasonable. Several presidents have tried the tactic of not spending all the money that Congress had appropriated &mdash; sometimes because they didn't like the program the money was being spent on, other times because they wanted to reduce government spending. Whenever this has been done, the courts have ruled against the practice. Congress has the power to spend money; the president has no power to &quot;just not spend&quot; money that Congress has appropriated.</p> <p>Of course, this is a special case. The power to tax and to borrow also belongs to Congress. When Congress chooses not to get the arithmetic right &mdash; when the spending is greater than the sum of the taxing and the borrowing &mdash; the Treasury is placed in an untenable position. When it's impossible to follow the law, the Treasury has to make a choice. Currently the Treasury is playing its cards very close to the vest. There were rumors that it would provide some hints as to its contingency plans last night or today, but so far it has not.</p> <p>Prioritizing payments has been the preferred strategy of the House Republicans who have been most adamant about refusing to raise the debt ceiling. They claim that the government should just live within its means, and that refusing to raise the debt limit, combined with prioritization, would be a way to force that.</p> <p>Other people point out that the arithmetic goes against this strategy very quickly. Once you pay for Social Security, Medicare, Medicaid, the Defense Department, and unemployment, you've already spent all the money.</p> <p>As I explained in my post <a href="http://www.wisebread.com/stalemate-on-the-debt-ceiling">Stalemate on the Debt Ceiling</a>, that's not how I figure things will go &mdash; because government contractors will go on providing services for some time, even if they aren't getting paid, so those are the bills to not pay. Seniors would still get health care (for a little while), even if the Medicare service providers didn't get paid. Fuel for fighter jets would still get delivered (for a little while), even if the oil companies didn't get paid.</p> <p>I still think the most likely option would be for the Treasury to prioritize spending. It would pay the interest on the debt, it would pay Social Security, it would pay federal employees (perhaps after laying off non-essential ones), it would pay soldiers. What it wouldn't pay would be the ordinary business debts of the government &mdash; defense contractors, drug companies, landlords, utility bills &mdash; including the big ones, like payments for Medicare and Medicaid, etc. (No smart drug company executive would quit delivering drugs to a VA hospital just because its bill was a bit late getting paid.)</p> <p>And, as I said, I think Congress would cave pretty quickly, once business interests found that they were still providing services for the government, but were no longer getting paid.</p> <h2>Other Options</h2> <p>With the Treasury being so coy, I thought I'd at least touch on the other possibilities.</p> <h3>Pay Late</h3> <p>The Treasury has hinted that it would just pay the government's obligations in the order that they were due, making payments as and when the money arrives. For the first few days, we'd just be paying a few days late. Very shortly after, we'd be paying several days late. They'd treat every debt the same, including interest payments on the national debt. The result would be technical default almost immediately.</p> <p>I think that's pretty unlikely. The Treasury is keeping the option on the table to pressure Congress, but managing the debt is the department's whole reason for existence; they'd never willingly make an interest payment late.</p> <h3>Issue Debt Anyway</h3> <p>Some people have pointed to a provision in the 14th Amendment to the Constitution, which says, &quot;The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned,&quot; and suggested that the Treasury could call that authority for selling enough debt to make the payments that Congress has already authorized.</p> <p>I think that's even less likely.</p> <h3>Run an Overdraft at the Fed</h3> <p>The Federal Reserve acts as the Treasury's bank. When someone deposits a government check, the bank presents it to the Fed. The Fed then gives the bank money, and debits the Treasury's account at the Fed. The Treasury's accounts are kept topped off through tax receipts and issuing government debt.</p> <p>Suppose the Treasury just went right on writing checks, even though there wasn't enough money in the account? The Fed could either bounce the check, or pay it &mdash; letting the Treasury run an overdraft.</p> <p>Paying the check would create money out of thin air, threatening inflation. However, the Fed could &quot;sterilize&quot; that money by selling enough assets to soak up the excess cash.</p> <p>I see that as almost as unlikely as the 14th Amendment scenario. The folks at the Fed are bankers; they're not going to let the Treasury run an unlimited overdraft.</p> <h2>What You Can Do</h2> <p>I've been wracking my brain to come up with anything clever that individuals can do to make the whole situation less fraught, and I haven't come up with anything.</p> <p>You could sell your Treasury securities, but what would you do with the money? If U.S. government bonds are no good, in what way would U.S. government currency be better? You could invest in foreign bonds, but which ones? The euro has its own problems &mdash; arguably worse than ours, because they're real (while ours are entirely self-inflicted). You could put some money in Swiss francs or Japanese yen or Canadian dollars, but that's a lot of trouble for no particular gain that I can see. You could buy gold, but it's already gone up a lot on the panic trade, and will almost certainly come down if debt problems are resolved.</p> <p>The only bit of advice I've got is to trust banks over money funds. Money funds invest all their money in just the sort of securities that suddenly become worthless if the markets seize up (as they did after the Lehman bankruptcy in 2008). Banks, on the other hand, have actual assets (loans to local businesses) and they have access to the Federal Reserve to get cash if necessary.</p> <p>The Treasury has started hinting that it will provide some guidance about its contingency plans before August 2nd. I'll keep an eye out and will post further, if there's any new news.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/debt-ceiling-contingency-plans">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stalemate-on-the-debt-ceiling">Stalemate on the Debt Ceiling?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-the-reform-of-fannie-mae-and-freddie-mac-will-affect-you">How the Reform of Fannie Mae and Freddie Mac Will Affect You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-debt-ceiling-crisis-in-everyday-english">The Debt Ceiling Crisis in Everyday English</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-protect-your-credit-after-the-equifax-breach">How to Protect Your Credit After the Equifax Breach</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/deadweight-loss-of-christmas-economist-explains-why-gifts-are-inefficient">Deadweight loss of Christmas: Economist explains why gifts are inefficient</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Financial News debt ceiling federal government treasury securities Fri, 29 Jul 2011 22:59:53 +0000 Philip Brewer 644067 at http://www.wisebread.com What if foreigners quit lending the US so much money? http://www.wisebread.com/what-if-foreigners-quit-lending-the-us-so-much-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-if-foreigners-quit-lending-the-us-so-much-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/foreign-currency-and-coins_1.jpg" alt="Foreign currency and coin" title="Foreign Currency and Coin" class="imagecache imagecache-250w" width="250" height="165" /></a> </div> </div> </div> <p>One of the bugaboos of the financial doom-and-gloom crowd is the worry that foreigners (China in particular, but also oil exporting countries in the Middle-East, and others) might quit buying so many US Treasury securities.  If that happened, they say, the value of the dollar would plummet, interest rates would soar, and the US economy would be in terrible trouble.  I say:  Bring it on!</p> <p>I&#39;m not the only person who isn&#39;t worried about this.  Quite a few people take some comfort in the idea that dumping Treasury paper would hurt the major foreign holders worst of all, and that they&#39;d never shoot themselves in the foot that way.  The doomsters retort that, given the inflation rate, the exchange rate, and the prospects for the US economy, it may well amount to the same thing either way, but that by selling, foreign holders of US paper could at least get something.</p> <p>My own take is that the whole analysis is wrong.</p> <h2>What would happen?</h2> <p>Remember that the US isn&#39;t a bank--the government sells bonds, it doesn&#39;t take deposits.  Foreign holders of dollars can&#39;t show up and demand their money back.  All they can do is sell the securities they&#39;ve got.  (And, of course, quit buying more.)</p> <h3>Interest rates</h3> <p>Obviously, if major holders started unloading their treasury paper, the prices would plummet and interest rates would soar.  That would make it expensive for the US to borrow new money, but it wouldn&#39;t affect the government&#39;s cost for the money they&#39;ve already borrowered.  In any case, borrowing large amounts of money is just a policy decision by the Bush administration and the Congress.  As recently as 2000 the US government was running a surplus.  With the economy slipping into a recession, it would be harder to run a surplus now, but the current large deficit is entirely optional.</p> <p>Besides making it expensive for the government to borrow large amounts of money, higher interest rates would make it more difficult for everyone else to borrow money as well.  On the other hand, it would make it quite profitable for people to save and invest money.  In fact, once the government got its fiscal house in order (something that wouldn&#39;t really be optional in this scenario), we&#39;d see the exact reverse of what the doomsayers predict--treasury paper would become a highly prized asset.  People who bought it cheap when foreign governments dumped it would make huge profits.</p> <h3>Exchange rates</h3> <p>You&#39;d see similar results in the foreign exchange market.  The value of the dollar would drop, making imports more expensive, but making exports more competitive.  </p> <p>The US (because it is large and well-endowed with both natural resources and skilled workers) could actually produce most of what it needs domestically.  The only reason it doesn&#39;t do so is that imports from low-wage countries are so much cheaper.  </p> <p>Of course, producing more of what we use would cost more--the consumer has had it great over the past 30-odd years of globalization, getting all sorts of cheap stuff that would cost a lot more if it weren&#39;t imported from low-wage countries.</p> <p>The result would be lower standards of living, but it wouldn&#39;t be a catastrophe.  And, there would be winners as well as losers.  Manufacturers would come out ahead, as would farmers and workers.</p> <p>As the US dollar falls, the price of everything that trades in global markets (for example, corn, wheat, and soybeans) rises.  (We see that already.)  Since we grow a lot of those commodities, we benefit in about equal measure to our losses--the raw materials cost more, which means the stuff we buy costs more, but the producers earn more, so they have more money to spend.  </p> <p>One major exception, of course, is oil, where we use far more than we produce.  The price of oil would obviously soar in this scenario, hurting everybody.  But that&#39;s going to happen anyway.</p> <h2>Positioning yourself</h2> <p>I don&#39;t think this is a likely scenario, simply because (as I described at the beginning), dumping treasury paper would hurt the foreign holders of it most of all.  Still, it&#39;s not an impossible scenario, so it&#39;s worth looking at how you&#39;d want to position yourself against such an eventuality.</p> <ul> <li>First, you&#39;d want to be sure not to be in debt, especially not variable-rate debt.  Interest rates would shoot up, making debt even more expensive than it is now.</li> <li>Second, you wouldn&#39;t want to be in a business that depended on cheap imports.  (At the moment that&#39;s most businesses.  Some, though, could quickly move to local sourcing of their inputs, while others would find that difficult or impossible.)</li> <li>Third, you&#39;d want to minimize your household&#39;s dependence on the sort of imports that would become much more expensive.  The hard one here is fuel.  (Your house or apartment is probably full of imported goods, but you&#39;ve already got them and won&#39;t be harmed if their price soars.)  I&#39;ve talked before about <a href="/plan-for-expensive-fuel">preparing for higher fuel prices</a>.</li> <li>Finally, expect a lower standard of living.  Americans have enjoyed a high and rising standard of living for years, through a combination of individual borrowing (especially against homes), government borrowing (which has let the government fund an expensive war while lowering taxes), and globalization (importing goods from low-wage countries).  This scenario would just mean that they&#39;d come to halt abruptly, but they&#39;re coming to a halt in any case.</li> </ul> <p>Regular Wise Bread readers will have noticed that these are generally the same recommendations that we make anyway.  That&#39;s the reason for my somewhat flippant call to &quot;bring it on!&quot;--we&#39;re already ready.</p> <p>A quick transition to a world where everyone had to live within their means would be rough--homes would be lost, jobs would be lost, businesses would be lost.  But we&#39;re heading there anyway, so it&#39;s just a matter of whether the transition will be fast or slow.  As individuals, we have the opportunity of starting the transition now--ahead of everyone else.</p> <p>I suggest you make the most of it.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/what-if-foreigners-quit-lending-the-us-so-much-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/self-sufficiency-self-reliance-and-freedom">Self-sufficiency, self-reliance, and freedom</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/wage-slave-debt-slave">Wage slave, debt slave</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/tips-for-increasing-your-financial-literacy">Tips for Increasing Your Financial Literacy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/another-path-to-recovery-higher-incomes">Another path to recovery: higher incomes</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/join-america-saves-week-february-24-to-march-2nd">Join America Saves Week February 24 to March 2nd</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Frugal Living Debt Management debt foreign foreign currency treasury securities Tue, 08 Apr 2008 20:43:41 +0000 Philip Brewer 1991 at http://www.wisebread.com Savers suffering as rates fall--what to do http://www.wisebread.com/savers-suffering-as-rates-fall-what-to-do <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/savers-suffering-as-rates-fall-what-to-do" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/savings-vs-fedfunds.png" alt="Federal funds rate and savings interest rates both drop" title="Savings versus Federal Funds rate" class="imagecache imagecache-250w" width="250" height="178" /></a> </div> </div> </div> <p>Interest rates for ordinary savers held up pretty well after the first Fed rate cut in July last year.&nbsp; There was a simple reason--banks needed the money.&nbsp; With the credit squeeze making it tough for banks to raise cash, the last thing they wanted was for savers to draw their money out in search of higher returns.&nbsp; The Fed's efforts to relieve the squeeze have been somewhat successful--banks have substantially cut the rates they'll pay savers.</p> <p>The first graph shows the Effective Fed Funds Rate (blue) versus the rate that I've been earning on my ING Direct savings account (red).&nbsp; (I picked the ING rate simply because it's one that I happened to have data for.&nbsp; The Fed Funds and mortgage rate data are from the <a href="http://research.stlouisfed.org/fred2/">St. Louis Federal Reserve</a>.)&nbsp; As you can see, the savings account rate held steady for a couple of months after the Fed Funds began to drop, and even after it began to fall, fell more slowly.</p> <p>The rates actually crossed over in December, with the Fed Funds rate falling below the savings account rate.</p> <p>Still, with the Fed driving rates lower and lower, the rate paid to savers dropped steadily.&nbsp; The 4.5% that ING was paying last summer has fallen to 3%.</p> <p><img width="400" height="300" align="right" alt="" src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u203/rates-compare.png" />As an aside, it's worth noting that the rates that bank <strong>charge</strong> have scarcely dropped at all.&nbsp; The green line tracks the average rate for a 30-year conventional mortgage, which has barely budged over the past year.</p> <p>Given this, what's a saver to do?&nbsp; Well, shopping around for better rates is always worth doing.&nbsp; There are banks paying more than ING Direct.&nbsp; It's also worth considering other savings instruments.</p> <p>As an example of the latter, consider savings bonds, and in particular, the I Bond.&nbsp; It pays a complex variable rate based on the Consumer Price Index.&nbsp; Some people dismiss it, knowing that the CPI substantially understates inflation.&nbsp; That's a mistake.&nbsp; Instead of comparing the I Bond to the inflation rate, you need to compare it to other rates available to savers.</p> <p>The <a href="http://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm">way the I Bond works</a>, there's a fixed rate to which is added an inflation rate (basically, the CPI).&nbsp; The fixed part doesn't change once you buy your bond; for the rest of this month, it's going to be 1.2%.&nbsp; The inflation rate changes every six months, based on the CPI for the preceding six months.</p> <p>We know what the combined rate is for the rest of this month:&nbsp; 4.28%.&nbsp; If you buy a bond this month, you'll keep the same 1.2% fixed rate for the lifetime of the bond.&nbsp; We also know that the growth in the CPI for the past six months will almost certainly be as high as the growth in the preceding six months, so you can be reasonably confident of getting as good a rate for the next six months as you're getting for the first month.&nbsp; After that, rates will vary--but I don't think you need to worry about the rate of growth in the CPI dropping so low as to make an I Bond uncompetitive with an ordinary CD or savings account any time soon.</p> <p>So, how do I Bonds stack up compared to CDs or savings accounts?&nbsp; Well, one big difference is that you can't get your money back for a year.&nbsp; Once a year has passed, you can cash your bond in any time you want, but if you cash it in before 5 years are up, you lose 3 months interest.&nbsp; Taking that penalty into account, an I Bond is roughly as good as a 1-year CD that pays 3&frac14;%.</p> <p>The big win for I Bonds comes when you really don't know how soon you might need the money.&nbsp; You have to be confident that you won't need the money for a year, but after that you can decide month-to-month whether the I Bond is the best choice.&nbsp; If those months add up to 5 years, the 3-month interest rate penalty goes away and the bond just gets better.</p> <p>Because you don't know the future (regarding either interest rates or your future needs for money), one thing to consider with savings bonds is buying them in small amounts over time.&nbsp; You can buy an I Bond for as little as $50 ($25 if you <a href="/treasury-bills-for-ordinary-folks">buy them electronically via TreasuryDirect</a>).&nbsp; That makes it easy to manage the one-year wait before you can cash a bond in--buy very modest amounts at first.&nbsp; If the interest rate remains competitive, buy more later.</p> <p>Two other details: &nbsp;</p> <ul> <li>There's a special tax provision that lets you defer taxes on savings bond interest until you cash the bond in.&nbsp; (And, like any US government security, the interest is free from state income taxes.)</li> <li>Savings bonds pay interest from the first of the month, no matter when in the month you buy them.&nbsp; So, by buying them near the end of the month, you can pick up almost one month's interest immediately.</li> </ul> <p>If you're struggling to find a reasonable return for your savings, and you've got some money that you can safely tie up for a year--especially if there's a pretty good chance that you won't need it for another five years--the I Bond is a reasonable choice.&nbsp; It's quite a bit better than most bank CDs.</p> <p>Update:&nbsp; As I feared, this deal was too good to last.&nbsp; On May 1st, the Treasury announced the new fixed rate for the next six months:&nbsp; <a href="/i-bond-rates-go-to-zero">Zero</a></p> <p>&nbsp;</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/savers-suffering-as-rates-fall-what-to-do">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/new-rate-set-for-series-i-savings-bonds">New rate set for series I savings bonds</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/savings-bonds-as-interest-earning-travelers-checks">Savings Bonds as Interest-Earning Travelers Checks</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-places-to-stash-your-money-besides-a-savings-account">10 Places to Stash Your Money Besides a Savings Account</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-foolproof-ways-to-protect-your-money-from-inflation">4 Foolproof Ways to Protect Your Money From Inflation</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/whats-the-right-percentage-of-cash-for-your-portfolio">What&#039;s the Right Percentage of Cash for Your Portfolio?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment federal funds rate federal reserve i bonds savings savings bonds treasury securities Fri, 04 Apr 2008 13:33:36 +0000 Philip Brewer 1977 at http://www.wisebread.com