Reward savers and retirees−Don’t penalize them

....."If you have your own currency, you don’t have to default, you can just inflate your way out of it. But inflation means you create a set of winners and losers. It doesn't do you any good if you have 6 percent inflation but interest rates go up 10 percent. That’s actually a drag on the economy, those are very high real interest rates. So what you have to do is create negative interest rates where the inflation rate is higher than what the savers get.

So basically you punish the savers who live on what the banks can pay, either directly or indirectly, and get the inflation going so that inflation is higher than what you’re making and that means you are losing money in real terms.


Now, the problem with inflation is not everybody loses, but there are winners and losers. The losers are the savers and retirees, people on a pension, people like your doctor client who are going to see their wealth erode unless they invest in gold or do something to defend themselves.


The winners are banks, hedge funds, speculators, people who got into gold, people who understand what we're talking about and do something to protect themselves. So it’s not as if inflation is spread evenly across the whole population; what you have is a bunch of winners and a bunch of losers. So the losers generally speaking are the savers".

By  Jim Rickards