When inflation increases, those with money in savings accounts are the losers, and those with substantial levels of debt (homeowners) are the winners.

More accurately, when inflation exceeds expected levels, those with long-term, fixed rate savings are the losers, and those with substantial levels of long-term fixed-rate debt (e.g., homeowners with fixed-rate mortgages) are the winners. Otherwise, the interest rates implicit in the fixed rates compensate fully for inflation, including increases that are anticipated by the market. (“Risk #2” is really a correction to the main point of the article.)