Most likely the next big inflation push similar to the 70s will not end so nicely as the early 80s. It will likely end with hyper-inflation that will destroy the perceived value of our Fiat Dollars.

In the off chance that does not happen, the best thing about the new EE fixed rate bonds is that smart fellows can wait till close to the end of the 6 month rate adjustment to make purchases if long-term rates have fallen significantly.

For example if the EE rate fixed on May 1st is 10% then by October the 10-year T-Note rate drops to 8%, one would be wise to run out and buy the EE bonds sporting a 10% rate before November 1st.

These EE bonds are a superior alternative to regular long-term bonds for small investors since the principal will not drop as interest rates rise, which allows you to redeem them for new ones. A nice feature even after taking into account the one-year redemption restriction and the five-year 90 day interest penatly.

P.S. People should be cautious in making the naive assumption that the CPI rate used in I-bonds calculations is an accurate depiction of "inflation". In fact recently the CPI indices have clearly understated inflation, and this trend will likely continue and get worse. As with anything, BUYER BEWARE, do your research and use your brain.