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View Full Version : Dec 3: US Treasury limits purchases of I-bonds to $5000/yr & $20000 max/life.



Starving Steve
12-05-07, 10:38 PM
I went to www.savingsbonds.gov (http://www.savingsbonds.gov) and guess what: Starting Dec 3rd, 48 hours ago, the US Treasury quietly placed a limit on all I-bond purchases to $5000/year and $20,000/life. This is big news because the former limit for I-bonds was $30,000 per year in over-the-counter savings bonds and an additional $30,000 per year in paper savings bonds held at the Federal Reserve in a numbered account for you. And formerly, there was no lifetime limit on I-bond purchases, either.

So what? So they are limiting access to even this fig-leaf of a protection from US inflation.

Why? So they can force savers to buy US Treasury bonds without inflation protection at rates as low as 1 or 2% nominal.

Any alternative? You can buy over-priced and improperly appraised real estate to help to bail-out the banks by making a market for real estate. (In other words, you can be the patsy.)

Implications of this? If the US Treasury can quietly change the rules of I-bonds so drastically, what other rules might the US Treasury be thinking about changing?

What is next: Gold confiscation? Gold re-regulation? Limits on gold purchases? Currency controls? More border controls? More banking controls? More coin shop controls? More drug war? More controls of foreign bank accounts held by Americans? More control of foreign brokerage accounts held by Americans? Exit visas? Border walls?

zoog
12-05-07, 11:05 PM
I went to www.savingsbonds.gov (http://www.savingsbonds.gov) and guess what: Starting Dec 3rd, 48 hours ago, the US Treasury quietly placed a limit on all I-bond purchases to $5000/year and $20,000/life. This is big news because the former limit for I-bonds was $30,000 per year in over-the-counter savings bonds and an additional $30,000 per year in paper savings bonds held at the Federal Reserve in a numbered account for you. And formerly, there was no lifetime limit on I-bond purchases, either.

So what? So they are limiting access to even this fig-leaf of a protection from US inflation.

Why? So they can force savers to buy US Treasury bonds without inflation protection at rates as low as 1 or 2% nominal.

Any alternative? You can buy over-priced and improperly appraised real estate to help to bail-out the banks by making a market for real estate. (In other words, you can be the patsy.)

Implications of this? If the US Treasury can quietly change the rules of I-bonds so drastically, what other rules might the US Treasury be thinking about changing?

What is next: Gold confiscation? Gold re-regulation? Limits on gold purchases? Currency controls? More border controls? More banking controls? More coin shop controls? More drug war? More controls of foreign bank accounts held by Americans? More control of foreign brokerage accounts held by Americans? Exit visas? Border walls?

A few more details from the press release (my highlighting/underlining):


December 3, 2007

The annual limitation on purchases of United States Savings Bonds will be set at $5,000 per Social Security Number, effective January 1, 2008. The limit applies separately to Series EE and Series I savings bonds, and separately to bonds issued in paper or electronic form. Under the new rules, an individual can buy a maximum of $5,000 worth of electronic and paper bonds of each series in a single calendar year, or a total of $20,000, in single ownership form. If paper bonds are issued in co-ownership form, the limit applies to the first-named co-owner. All limits are based on the issue price of the securities.

The reduction from the $30,000 annual limit in effect for both series since 2003 was made to refocus the savings bond program on its original purpose of making these non-marketable Treasury securities available to individuals with relatively small sums to invest. Approximately 98 percent of all annual purchases of savings bonds by individuals are for $5,000 or less. The minimum purchase price for Series EE bonds is $25, whether purchased electronically or in paper form; the I bond minimum purchase is $25 for bonds issued in electronic form and $50 for those in paper form.

Savings bond purchases have been subject to an annual limit since Series E Bonds were first issued in 1941. Over the years, limits have been adjusted by the Treasury Department several times and have ranged from a low of $3,750 (at issue price) for Series E bonds from 1941 through 1947 to the $30,000 (issue price) limit that most recently applied to both Series EE and Series I bonds. The limit was last set at $5,000 (issue price) in 1973.

For more information about the change in the purchase limit for savings bonds, visit our frequently asked questions (http://www.savingsbonds.gov/indiv/research/faq/annualpurchaselimitchangeqa.htm) page.
I don't read this as a lifetime limit.:confused: A $5000 annual limit of each series, with an annual total of all purchased series of $20,000; down from the $30,000 annual.

Starving Steve
12-07-07, 08:06 PM
What rubs me the wrong way is the US Treasury is forcing people who want to invest over $5000/yr in I-bonds to buy treasury bills ( which pay as low as 3%/yr. nominal interest ) or to buy Series EE savings bonds which pay about the same ridiculous rate. And this is at a time when the CPI in urban areas is running at or above 3%, so after tax, the return is NEGATIVE. Then add-in the hidden cost of devaluation of the dollar, and the deal really begins to stink.

And these stinkers--- these Republicans at the US Treasury who have run-up a national debt of more than $9 trillion dollars--- now have the guts ( the hootzbah ) to tell the people that they are trying to help them by limiting the sale of I-bonds. And these neo-con Republican stinkers have the balls to print the application for I-bonds in gold colour as if to imply that the I-bonds which they do allow you to buy are "as good as gold".

And the I-bonds that you do get--- if you can get them--- pay a measily 1 or 1.25% real interest which, of course, is fully taxed--- in addition to income tax on the inflation compensation of 3.06%.

Oh, but the story is even more rotten than that: Should there be a period of deflation ahead, the US Treasury can take back--- CHARGE-BACK--- against any inflation compensation you have received in the past on the bonds so long as the charge-back doesn't damage the original principal vested in the bonds.

Should you cash the I-bonds in before five years, you will forfeit 90days of interest as a penalty.

And, of course, the neo-cons lie about the inflation rate and devalue the dollar in your face, as they tell you that they support a strong dollar policy..... Then they hold prayer at 10AM daily in the Congress, the Supreme Court, and in the White House.:mad: