Negative Real Interest Rates – The Inflation Rate Above The Interest Rate

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via @OccupyWisdom :

NEGATIVE REAL INTEREST RATES

The #inflation rate above the interest rate

Wage earners lose
Savings deposits lose
Cash holders lose
Bond/Fixed income investors lose
Retirees lose
Most equity investors lose

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…and debtors lose too, bc of course THOSE rates are far from NEGATIVE

RULE OF 72

👨🏼works hard, saves $10K in the avg savings account. 👨🏼is rewarded with a negative rate of return & the 10K losing half of its value 10-24 years

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🧔🏽spends hard, charges $10K on the average credit card. 🧔🏽 is rewarded with the $10K debt doubling every 4.8 years

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