They assume that their government is a benevolent force that will take care of them and would never do anything to intentionally screw them over.
I am not implying that the government will intentionally cause any harm. However, some actions can benefit a part of population and another part will have to pay for it. Say, if our most bearish predictions come true, and 10 million people find themselves on the verge of losing their homes, won’t it be reasonable to expect the government to do something about that? I know, I know, they deserve it, but they still vote, don’t they? One way to address that is to let inflation loose. It will prevent the nominal values of the homes from falling, but what will that do to our savings?
