I don't see that to be true. There are plenty of low-risk, low reward options out there if all you want to do is preserve your value.
Inflation has its own issues, but as I see it they are mostly social class related.
Inflation has its own issues, but as I see it they are mostly social class related.
No there aren't. To preserve real purchasing power monetary inflation FORCES you to speculate. Straightforward saving has been a loser's game for many decades now. This was not always true and there were long periods of price deflation and good interest rates before the establishment of the fed.
18% interest was a loser's game? http://www.hsh.com/indices/6mocd80s.html Even as recently as 1989, CD rates were over 10%. In 2000, they were over 7%, and in 2007, they were over 5%. http://www.hsh.com/indices/6mocd00s.html
Right now, America, and the world, are experiencing deflation. Yet, 6-month CD's are paying over 2% interest.
When all factors are considered, including understated CPI figures, I believe real returns to cash in the period in the 80s you point to were not even very good. Especially when you consider the opportunity cost of your five year CD and what played out in other asset classes during that five years.
What other zero-risk asset classes were we comparing against?