The ideal would be to find an annuity that varies with the actual inflation rate, because the basket of goods that a retiree will consume is going to be different than the basket of goods a young person will consume .

FORBES: Managing Your "Tail-End" Risk - Part 2: Deferred and Inflation- Protected Annuities

The first article shows that the actual rate of inflation less falling or stable housing costs is 4.68% in a recession, when US Treasuries are giving us 2% and bank accounts nil.

FORBES: Money Creation and Limited Government

These monthly withdrawals are adjusted at the start of every year based upon the actual rate of annual inflation for the preceding 12 months.

FORBES: What Portfolio Withdrawal Rate Can You Live With?

Inflation reflects itself first in a lowering of the actual rate of interest beneath the natural rate.

FORBES: Why Interest Rates Tell Lies About Inflation, Growth And Just About Everything Else

This is why I feel an interest rate rise will come suddenly and not be dependent on actual inflation.

FORBES: Beware Of Sudden Interest Rate Spike

As there is almost no evidence of consumer-price inflation, either actual or potential, Mr Greenspan can present this week's rate rise as an act of great prudence.

ECONOMIST: Greenspan lets things simmer