Graph of US savings rates

[Atash Hagmahani]

http://www.billshrink.com/blog/personal-savings-rate/

Atash'es AMAZING prediction: as savings rates go UP, so does inflation. Not a coincidence. 

[opsec]

How does saving our money drive inflation up?

[Atash Hagmahani]

It doesn't. Instead, it creates an incentive for politicians to produce more inflation, because they know that the burden will be transferred to the public savers.

It's called "contrary investing". Always do the opposite of what the masses are doing. If they are putting more money in the bank, then probably that is not a wise thing to do. Assume high inflation.

[darwinslair]

unfortunately we have a stituation where there is 0% interest, so no incentive to save, regardless of what anyone else is doing.

Hard to figure what to do.  Metals are holding value while our $ plummets, but that doesnt make you any real money, just holds you where you were.  Key is to find something that actually produces an income while not depreciating.

Tom

[Atash Hagmahani]

Wait for the commercial-real-estate-driven market-crash, and take the opportunity to buy...

* income-producing real-estate
* precious metals

Might be a good time to stock up on tools.

The problem with inflation is that it's a thief that steals from you no matter how well-hidden your treasures are, because the nominal price of everything goes up; not only does your currency become worth less over time, but the nominal price of inflation hedges goes up, creating a taxable event when you need to trade it in for something else, despite the fact that it was actually the currency that went down.

[MountainMeg]

Always do the opposite of what the masses are doing.

Makes sense.  We have little in savings outside of a few months mortgage payments (fixed rate) and hubby's thrift savings plan (gov't 401k).   We are, however, paying cash for a new wood stove, possibly finishing the basement and stockpiling food/tools/gardening supplies.