My wife and I have been saving aggressively for the last year now and all of our savings are in the form of cash in the bank. About half of the money is in US dollars and half is in Canadian dollars. I have been reading about quantitative easing 2 (QE2) and it seems like I can expect some loss due to devaluing of US dollar. I also read that Canada would be doing some easing also. Is this correct? If so, it seems this would represent a substantial loss because my savings are in cash.
I realize it might be difficult to give me direct financial advice as it might depend on other things. So, could anybody just say theoretically, if someone was trying to hedge against inflation, what would one do? Does it matter what currency I have my savings stored in CAD vs. USD?