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by murderfs 1647 days ago
> Lazy: Send it to Gemini, buy 600k worth of GUSD, loan it on their Lend program and collect 8%pa compounded monthly.

Why would you bother with this when TIPS bonds are paying out 7.12%?

3 comments

Series I Bonds, not TIPS; they only have that rate locked in for the next 6 months (you're getting a 0 percent real return), and you can only buy $10K per year (+$5K if you do the tax return withholding method).
Yeah. A lot of folks are talking about inflation bonds (not TIPS). I dunno man. I trust the winklevoss, 2 of the richest men on the planet (in Bitcoin, which is the only money that matters ;-)).

Why? Because a inflation protected security is denominated in the currency that is inflating. It’s kinda nonsensical really. How to achieve those returns? It’s money printing isn’t it. In the 20% extreme high yield example above, providing liquidity is a service, extremely meaningful in globalized digital economies. I strongly recommend the crazy option. But that’s just me cos I’m crazy. :-)

Bitcoin isn’t money. It’s a gambling token.
What is money? What is the role of the state in the value of currencies? What is the average life of fiat currencies? https://wtfhappenedin1971.com/
> What is the role of the state in the value of currencies?

They provide the violence to back up the value of the currency. A currency is only as valuable as the courts and ultimately the army that backs it.

Money doesn’t fluctuate in value 50% on a timescale of minutes.
I mean, it can. Not minutes, and minutes means internet speeds. Old school finance is in the order of days. Securities can collapse in minutes too I guess… Fiat currencies inflate and are worth less every year. In some places in the world, relative to the USD, which itself is an inflationary fiat currency, it could be 50%! What if you gave your life’s labor and saved it all in something a politician and banker could erase with a database record.
>I mean, it can.

>Not minutes

So… it can’t?

Are TIPS bonds accessible outside the US for non-Americans?
AFAIK, TreasuryDirect should be available to non-Americans. You'll need to get a U.S. Tax Identification Number, and figure out your tax situation though: it'll vary from country to country based on treaties with the U.S.
Looked it up.

https://www.treasurydirect.gov/indiv/help/TDHelp/faq.htm#Ope...

> In order to open a TreasuryDirect account, an individual or entity account manager must have a valid Social Security Number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or Employer Identification Number (EIN). The account owner must also have a United States address of record and have an account at a U.S. depository financial institution that will accept debits and credits using the Automated Clearing House method of payment.

AFAIUI, getting an SSN from abroad as a non-US citizen/resident is not realistic.

Ah, yeah, you're right. You can probably still buy them through a broker, though. Searching around a bit, it looks like you should be able to open an account with Schwab: https://international.schwab.com/
The account might be available to non-americans, but I-bonds aren't.

>Who may own an I bond?

>Individuals

>Yes, if you have a Social Security Number and meet any one of these three conditions:

> United States citizen, whether you live in the U.S. or abroad

> United States resident

> Civilian employee of the United States, no matter where you live

>To buy and own an electronic I bond, you must first establish a TreasuryDirect account.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...