Real negative interest rates, simply: You earn 5% on your savings. Inflation is 12%. You’re not winning. You’re losing purchasing power. That’s a real negative interest rate. Most wealth isn’t taken through taxes. It’s taken through money dilution. More money gets created. Your money becomes worth less. This doesn’t happen once. It happens continuously. Official inflation doesn’t show the full picture. What matters is the expansion of the money supply. Even with technological progress, those gains don’t fully reach you. Part of them is absorbed by the system. So what happens? You earn interest. But your money loses value faster. You get poorer. Quietly. This is why “fixed income” starts to look like fixed loss. Real negative rates are how purchasing power is slowly taken from you.
