"How is anyone expected to save for retirement without getting a return higher than the correct inflation rate?"
Money is a medium of exchange, not a long-term store of value.

I could not agree with you more! Well said.

What you say is accurate, but the underlying value of the paper money is undermined when it is not supported by something with real value. Roughly $1 trillion of paper "money" is printed each year. It is like Monopoly money. Compared to a $15 trillion GDP, that is a 1/15*100% = 6.7% inflation rate beyond what is stated by the federal government. Given that checking and savings accounts have less than a 1% return, the paper dollar you give me today is worth 94 cents next year. In 10-11 years, it is worth 50 cents. In 20-22 years, it is worth but a quarter. How is anyone expected to save for retirement without getting a return higher than the correct inflation rate? That is not possible now through even through conservative investing. Only aggressive investment in what is now a stock market pyramid scheme can approach the government printing rate. At this printing rate, it is well nigh impossible to produce fast enough to outpace the dollar's depreciation. Time to shrug.

All money and media of exchange are backed only by our willingness and ability to create things that serve one another's needs. That goes for oil, metals, coins, or anything else that stores value. All the underlying value is in that people will put their ingenuity to work in fair exchanges without mutual coincidence of wants.

I have no problem with paper money that is 100% backed by coin of equal value. I reject fiat currency and fractional reserve banking as well, for numerous reasons that are wonderfully laid out in The Creature from Jekyll Island by G. Edward Griffin.

America's experiments with a Federal Reserve system has been nothing less than financial rape of people who work hard to save what little they can. Inflation is a particularly vile foe because it is so hard to see.

Previously posted six months ago, I felt that this became relevant again because of recent posts condemning "fiat" money in favor of gold and silver.