2008-09-02 — itulip.com
If the Treasury is dumping TIPS, I propose that the Treasury replace them with the world’s first inflation-indexed bond, issued by the US Treasury in 1779 during the Revolutionary War after the government massively inflated the dollar. Robert Shiller, who discovered the bonds in his research in 2003, said, "These bonds were invented to deal with severe wartime inflation and with angry discontent among soldiers in the U.S. Army with the decline in purchasing power of their pay." Rather than a politically manipulated, made-up inflation index, these bonds were indexed to a basket of commonly used commodities of the day: beef, corn, wool, and shoe leather.
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