From: "Virgils Ghost" 
Newsgroups: uk.finance
Subject: Re: Stock market value evaporation.
Date: Sat, 17 Jun 2006 15:59:00 GMT

"BIG BEN"  wrote in message 
news:zOlkg.19590$qD.4159@newsfe1-
<
> Instant access 5.10% like the Coventry "first" account.  they promise 0.6% 
> above the base rate for 12 months.          Quids in!.
>
> Why risk it.

Because inflation slowly but surely erodes the real value of your money, 
it's like boiling a frog. Growth of broad money supply in the UK is running 
in the region of 13% annualised according to the latest M4 data from the 
Bank of England. So even allowing for growth in GDP and your 5.10% (gross!) 
the value of your money has eroded by 6% over the past year, in terms of 
purchasing power for housing or gold, its value has eroded even further.

Money is a medium of exchange and a rather poor store of value over the 
longterm, your savings are quite simply inflated away "into thin air" as 
they keep pouring water into the whiskey bottle.