Oh I understand this, but for most people doing any kind of trading is just out of their league. I'm sure most people will be happy to know the $50k they have in their ING Account will be safe from most things while the economy levels back up again over the years.

How to protect against inflation:

1. Don't stick (too much) cash under a mattress. Avoid long-term bonds (which get killed by inflation).

2. Gold is a great inflation hedge, but is a terrible long-term investment. Other commodities are similar.

3. TIPS (e.g. VISPX) make excellent inflation hedges AND long-term investments.

4. Short-term investments, like money market funds, short-term bonds, and short-term CDs, also generally do well. If people expect 4% inflation, these investments need to pay more than 4% in order to get people's money.

5. Stocks and real estate protect against inflation over long time periods (5-10 years), but not over short periods.