Robert Kiyosaki, the author of the most famous book for financial education – Rich Dad Poor Dad, expressed his opinion recently on the current financial situation. If you aren’t familiar of what is happening in the financial world, then you have a lot to learn and I hope that I can show you the right direction in this article. Robert Kiyosaki’s opinion isn’t new. The information has been preached by him and the Rich Dad Advisors for a long time now. One of the Advisors – Mike Maloney wrote a book on Gold and Silver back in 2008 during the financial crisis.
The information in the book is as life changing as the book Rich Dad Poor Dad, the book that personally influenced my life 9 years ago. These books expand your views on the economy, finance and money in a way that you can’t return from, but in a great way. In his recent statement, Robert Kiyosaki said that the United States dollar is a scam, that is hurting people and small time investors in favor of the banking system. He also said that in the upcoming financial collapse, the best hedging tools will be precious metals (as they have been throughout history) and cryptocurrencies. As he described them, cryptocurrencies are the currency of the people and there is a great chance for them to outlive current fiat currencies.
Robert Kiyosaki: The US Dollar is a scam
According to Robert Kiyosaki, fiat currencies will be the first to go down. And the reason is quite clear. Never in the history of mankind was there a period in which every country printed money out of thin air. In the United States, it’s the Federal Reserve that prints an unlimited amount of money, but currently almost all countries have an equivalent of a Federal Reserve that prints unbacked fiat currency. Usually fiat currencies are backed by gold, silver and other assets to cover their value, but this isn’t true today.
The United States Federal Reserve is printing 85$ billion a month, amounting to 1$ trillion a year… every year. This is what causes inflation, but the inflation rate still hasn’t caught up to the real currency supply. According to Robert Kiyosaki and some of his advisors, after the fiat currency crash we will see an immediate crash of the stock market. When this happens, you will know that the biggest financial crisis of all of humanity’s history has started. The Real Estate bubble will be the next to follow, because of multiple factors and reasons.
As Mike Maloney said, the upcoming crisis will be the biggest wealth transfer in history. Many will lose a lot, but a small number of smart investors will win it all. Knowing the rules of the game that you are playing is crucial to your financial survival. During the following crisis, commodity prices will jump through the roof, as well as precious metals. That’s why Robert Kiyosaki thinks that Gold, Silver and Cryptocurrencies will be the number one hedging method of the next crisis.
Have you heard that Bitcoin will jump to 100,000$? Absurd right? Well not exactly. When the crisis hit, all fiat currency will lose purchasing power. That means that during a crisis, the price of one Bitcoin can exceed 100,000$ even a million. People that used to buy a loaf of bread for a dollar, will have to spend 10$ or more for the same commodity, because of the decreasing purchasing power of the dollar.
Fun fact: The United States dollar has lost 99% of its purchasing power for the last 100 years.
Know the game, know the rules and know who the real enemy is!
Unfortunately, this is the world that we live in. Even when you visit the website of the US Federal Reserve, you can see that what I’m talking about is written there. The printing of money results in the loss of purchasing power for those that hold fiat currencies. Talking about the US Dollar and his new book “Fake: Fake Money, Fake Teachers, Fake Assets”, Robert Kiyosaki had many interesting things to say about hedging your money before the financial crisis:
“The United States Dollar is a scam. I personally think that the dollar is already toast, because gold, silver and Cryptocurrencies are going to take it out… The United States Dollar is gone and in the year 2000 there was one currency – the US Dollar. It was the reserve currency of the world, until it was taken off the gold standard… and then came Bitcoin and digital currencies.”
He also said, what I said above that those that save money actually lose money. Their fiat currency stays the same, but their purchasing power is not going to return. Some people think that these facts are controversies, but thinking that speaks for itself and for the lack of real financial education. Robert Kiyosaki added:
“In the new book I talk about the three types of money today: God’s money, which are Gold and Silver, Government printed money – Fiat Currencies. And the third are the people’s money, which are digital currencies like Bitcoin and Ethereum, that are on the Blockchain. Gold is a hedge and I am expecting a collapse on the system. In the collapse, Cryptocurrencies will play a crucial role.”
Personal thoughts and Mike Maloney
Robert Kiyosaki isn’t the only one that is predicting the next financial collapse. Bill Gates was asked in April if there will be another financial crisis like the one from 2008. Bill Gates confirmed this and according to him the next financial crisis is certain and imminent. Although Bill Gates didn’t mention Cryptocurrencies, it became clear that he has been bearish on Bitcoin. Apple co-founder Steve Wozniak has expressed his opinion that Bitcoin is far superior that the United States Dollar.
He referred to the US fiat currency as “kind of phony”. Recently, Elon Musk decided to take Tesla private. Tesla was a publicly traded company, but he decided to make it private, buying all Tesla stocks at 420$. A smart move by him, especially if he is considering the coming financial crisis. This way, Elon Musk wants to hedge the evaluation of his company, because of the imminent stock market crash.
Because of the rules of the game, education and time are the biggest assets that everyone have. Most people think that exchanging your time for money is the right way, but it’s far from the truth. That’s why I highly recommend Mike Maloney’s Hidden Secrets of Money vs Currency. It’s an 8-part series that will give you the financial education that you wished universities gave. If you decide to watch all parts and you feel awakened after, you can return to this article and write a comment in the comment section. Share with us your thoughts, so more like minded people can connect and discuss these topics.