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Since September OCtober there has been a flight to safety with US Treasurys being the investment of choich. As stated on CNBC today, "For the past decade Bonds have out performed the stockmarket, which is not a historical norm. This trend will be reversed in the next couple of years."

So Bonds are the HOT investment of the moment. However with the MASSIVE Deficits, printing of money and issuing continous streams of Paper (Bonds) to float the US debt (Obamanomics)..., sooner or later INFLATION is going t rear its ugly head. At that time ANY investment that is tied to USD denominated assets is going t suffer...Thus CD's and Bonds are going to be hit hard. A mortgage of 200K is going to look like small potatoes. You will see your principle decline as the value of those Bonds will decline to match the going interest rate (locking U in). With an inflation rate above 5% you are losing purchasing power on those dollars.

As of late the USD has been falling in value which has caused the rise of oil and commodities and INTEREST TATES have been ratcheting up as well. Notice the price of Gold... The US biggest buyer of Treasurys has been demuring as of late as well. They are simply afraid of US deficit spending and the attending debasment of the USD and credit worthiness of the USA. Further take a look at the Budget situation in CA and the possibility of its eclarting BK..which will WIPE OUT bond holders. Also their has been the unheard of beofre speculation that the US might default on its interest payments on US Treasurys...again a wipe out of Bond holders....take a look at Chryslers Bond Holders and Obamas affection for them...

Simply one does not buy bonds in a low interest rate envirnoment especially an artificially created one. One buys bonds when interest rates are high. My Dads cousin bought 300K of 30 year Treasurys with an interest rate of 16%....match that investment for safety and return for the last 30 years.

Me thinks you have put your trust in Obamanomics...