Inflation-protected Cash Savings Accounts

In the wake of bank failures in 2008 in America and other nations with private banks, attention was drawn to the American Federal Deposit Insurance program and other risks that money-savers faced. One of these is price inflation.
In addition to bank failures, 2008 saw the bursting of a real estate bubble of immense aggregate value and the failure or near-failure of investment banks and insurers of collateralized debt obligations.
The effect of these multiple threats to privately owned capitalist institutions was to freeze credit markets and threaten every retail, wholesale, manufacturing, import, and other business operation in America whose whose cash flows (or customers' cash flows or suppliers' cash flows) required bank credit during all or part of its fiscal year.
To unfreeze credit and attempt to avoid accelerating deflation and unemployment, the government of the American people has announced general rescue plans that will put a premium on private saving -- as federal spending reaches proportions of the gross domestic product not seen since the height of spending in WW II.
People will no doubt save as much as they can, not on Keynesian principles that demand government spending, but to save for the rainy days they know are possible all the time.
Still, if ordinary people save and rich people invest to take advantage of government spending (to rescue the economy, defend the nation, educate future generations, and protect the environment and public health, etc.), the likely scale of economic activity over the coming decade will be prodigious. The risk of inflation will be great.
What will be done for the savings of ordinary people, exposed as they are to inflation, to put such ordinary people (especially the middle class backbone of America), in a fair economic position relative to the rich investors whose investments will keep up with inflation -- if and only if -- the middle class does save, to allow the government to spend?
One answer will be inflation-protected cash savings accounts.
Ireland has already created this solution. American Series I savings bonds make a weak attempt to do likewise.
In addition to the above facts, there is still another matter to consider -- namely, the tax-like effect of inflation:
a. When price inflation reduces the purchasing power of people of modest means, lost purchasing power has the same effect as taxes would have had.
b. For this reason, price inflation may be considered a form of taxation that voters are seldom given a chance to object to on election day.
c. Yet, if the federal government were to have implemented an inflation-protected cash savings account system, similar to the US Treasury Inflation Protected Securities (TIPS) system, the peculiar form of voter-defeating taxation, above, would be prevented.
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As stated ahead of the matter of tax-like effect,
the reason to implement TIPS-like cash savings accounts would be to maximize private savings when it was necessary to maximize national government spending (and lending).
It is and will be necessary to maximize national government spending and lending to develop a "green" producing economy and a renewable domestic energy economy, as well as public education and health care for all -- in the public interest.
Thus this entry on savings in connection with federal spending is crucial to broadcast to the public at large that IF they would save their jobs, homes, schools and civilization, they must also save their money -- if and when government spends enough to do the heavy lifting.

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