I think I am going to buy some of those worthless IOU's (I-Bonds)

I-Bonds are looking like a pretty good investment right now. They are paying 4.8%, are indexed to inflation + a premium, have some tax advantages and education funding benefits to boot, and the penalty to redeem them early is pretty light.

Looks like a winner for now.

Check into them here;

http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_i_rates.htm

They aren't bad, especially if you want to defer the interest until you are retired or in a lower tax bracket and can hang on to them (at least 5 years) long enough to draw the full interest without penalty. If inflation continues at present pace, they will have a good uptick every 6 months. I took out some I- bonds several years ago when the fixed rate was higher and they are getting over 6% right now and will go up whenever CPI rises.

EE bonds on the other hand are not such a good deal right now since they changed them to a 3.5% fixed rate May 1st and they will not go up during the 5 year period that they have to be held to get that full interest rate. Govt has made several changes to the EE bonds over the past decade or so making them a much worse investment.

Taxes are not a concern for me though so I am doing CD's nowadays. Last one I just took out was at 4% with a 15 month term and I have a money market getting 3% which is good for liquidity.