Yglesias says you don’t need a safe haven investment, since the government has already created one for you.
Since Yglesias says it, it must be true. Even though I’m sure I’m wrong, I’m not convinced by Yglesias’ argument.
TIPS are yielding a measly two-ish percent. (After all, their measure of inflation excludes things like food and energy and housing. I would have naively thought that you’d want your "safe haven" investment to protect you against increases in the prices of the things you actually buy, but I’m not smart enough to figure these things out).
My bigger problem with this advice is that I think US government debt is in a bubble. It’s almost like someone who can print money is buying those things (don’t worry, it’s not a problem because they’re only buying old Treasuries, which don’t impact the price of new Treasuries, apparently – so much for basic economics).
Of course, if Treasuries really are in a bubble, people who think that the low interest rates on Treasuries mean that the US government should borrow more will end up looking really dumb.