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August 14, 2008

Patriot Bonds no longer pegged to inflation

Thinking about buying a Patriot Bond (Series I)? You might want to think again. Series I bonds have been used to guaranteed principal, interest AND adjust for inflation (thus the "I"). Bonds bought after May 2008 are no longer adjusted for inflation. What that means is that buying a Series I bond is now, by definition, a nearly guaranteed money losing proposition.

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