Robert Kiyosaki: A Crash That Will Change A Generation

the world changed on August 15 1971 so when I look at the world and so why is it screwed up why is there such a gap between the rich and the poor why is real estate in a bubble you can trace much of it back to 50 years ago and in January of 1972 I was on an aircraft carrier in the South China Sea because I missed the announcement that what Nixon did in August 15th and it changed my life because I'm on this aircraft car as I'm Maran pilot and I get the letter from

Rich Dad via snail mail saying that hey Nixon took the dollar off the gold stand well it took me six months to get that letter but anyway I didn't know what it meant back in 1971 for those you may not know it it was illegal for Americans to own gold because in 1933 FDR took the dollar off the gold standard he also caused Social Security FDR really screwed this economy up way back then so I couldn't own goal we didn't know what goal was and that really changed my life so when I look at what

is going on in the economy today I mean let me ask this question how in the world can the CEO of a company borrow money just to Jack the price of their stocks up that's criminal and why is real estate price so high if you want to know why the rich are getting richer the poor middle class are getting poor our money is fake that's what's wrong and anybody saving dollars as a loser right now and because they keep printing it so on August 15th 1971 that is when when Nixon closed the gold window of

course when he closed it he said it was just temporary but it's been 50 years and it hasn't reopened but what you spoke about FDR 1933 is true because that's the year when the government made it illegal for Americans to own monetary gold so American citizens could not take their Federal Reserve notes back to the Federal Reserve and get real dollars which were made of gold all they could do was negotiate you know circulate the Federal Reserve notes but if you were not American if you lived outside the United States you were still able to

take your Federal Reserve notes to the Federal Reserve and actually get paid the gold that the notes promised to pay and so that continued up until 1971 and basically what was happening in the late 1960s early 1970s was we started to run very big deficits in the 1960s to pay for the war in Vietnam to pay to go to the Moon to pay for the war on poverty and all sorts of government programs they called it guns butter and we had both yet we didn't pay for either and so we ran these big deficits and

the Federal Reserve was then monetizing the deficits now we call it QE uh they hadn't you know thought of that word back then but that's what they were doing so the Fed was doing QE to monetize all this government spending we didn't have the gold and our foreign creditors were suspicious that we didn't have enough gold to meet our obligations so they started to show up at the Gold window with their Federal Reserve notes asking for the gold well we didn't have enough and so we end ended up defaulting on our obligations CU really Federal

Reserve notes were promises to pay gold and we defaulted on that promise and so anybody who says the US government has never defaulted on an obligation that's not true that was a massive default in 1971 and we've been on this fiat-based monetary system ever since and I think this system is now on the verge of an implosion and I think we're going to see this relatively soon where the dollar now collapses and the world returns to the gold standard just without the dollar because when the world was on a dollar standard after brenon Woods it

was because the dollar was not only backed by gold but redeemable on demand into gold and after we defaulted the dollar lost a lot of value in the 1970s about 2third of its value relative to the deuts mark the Yen the Swiss frank but it continued to serve as the reserve and it's a reserve currency to this day I think that status is what's in Jeopardy how old were you when were you been born yet yes I was born in 1963 so I was eight I don't think you were watching bonan so were you when

when Nixon made the announcement well gold is real money my father taught me about gold a long time ago in fact before we went off the gold standard my father was one of the few people who actually testified in front of the senate committee on money and banking against going off the gold standard and my father was the only one that said that if we went off the gold standard the price of gold would go up and that the value of the dollar would go down and that we'd have lots of inflation all of the

other government Witnesses including the then Secretary of the Treasury and the then head of theed better reserve they all said that if we went off the gold standard the price of gold which was about $35 an ounce at the time they said the price of gold would fall they thought the dollar was supporting gold instead of the other way around so they were talking about how great the economy was going to be if we can only remove the shackles of the gold standard and my father was the only one who testified and got it right

because he laid out exactly what was going to happen in the 1970s and it happened exactly the way he said and the exact opposite of what the Secretary of the Treasury and the feder Reserve said and you know what the Secretary of the Treasury and the Federal Reserve head are just as incompetent now maybe even more so than they were back then and they have no idea the damage that they have Unleashed from their policies especially the mistakes that they've made since Co I mean the Federal Reserve has done everything wrong since Co and despite

the fact that everybody is praising them for what they did remember everybody praised them for all the bailouts and all the stimulus following 2008 and they praised them when they bailed everything out after the Doom bubble but all those were policy mistakes what the Federal Reserve should have done following the outbreak of covid was withdraw money from circulation allow interest rates to go up because the problem with covid and I said this at the time was a supply problem people were leaving their jobs companies were shutting down people were staying home they weren't working they

weren't producing Goods they weren't providing services so we had a lot less stuff to buy what the Federal Reserve needed to do was reduce the money supply so that money supply went down with good Supply instead they did the opposite they flooded the economy with money they printed all this money and sent it out to everybody so what happened we increased demand while we were decreasing Supply that's why you're seeing this huge increase in consumer prices right now it would look pretty bad for America because a return to the gold standard would mean a rejection

of the dollar standard if the dollar was no longer desired as the reserve the value of the dollar on International exchanges would collapse because we have these record trade deficits I mean the last trade deficit we had alltime record high we're running trade deficits of about $1.2 trillion a year it is enormous but the only reason we could do this is because the world will take dollars for their stuff but if they go back to a gold standard they ain't going to take dollars for their stuff we're going to have to give them gold which

we don't have or we're going to have to produce stuff which we can't because we don't have the factories we don't have the infrastructure the labor force the supply chains so the dollar is going to collapse and what's going to happen is all of these products that Americans take for granted are on the shelves when they want to buy something they're all going to be gone because we're not going to be able to afford them I mean they're going to be too expensive for Americans to buy so the entire American standard of living is going

to collapse now it's not going to make that big a difference for a lot of the other countries outside the US because they don't issue Reserve currencies you know if you're living in New Zealand for example the New Zealand dollar isn't a reserve currency so if you want to import something you've got to export something people in New Zealand have to earn dollars we don't don't have to earn dollars we just print them now the people in New Zealand will start earning gold instead of dollars but the change for America is huge because we used

to be able to print dollars we can't print gold we have to earn gold just like everybody else and that's a game Cher for Americans but it's also a game Cher for people who have savings people who are hoping to retire if you think you're going to retire on a bunch of dollars you know you got another thing coming it's the dollars that are going to retire not you you're going to keep on working unless you take action now to divest yourself of US Dollars and dollar denominate assets and buy some real things foreign stocks

property gold and silver you got to get out of paper and into actual things that have real value and that can generate real income the US will come out with a fedcoin now that could be a rumor as generally is it just forward guidance by the FED in other words would that solve the problem that's just going to make the problem worse that's just going to make it easier for the Federal Reserve to create inflation because instead of creating paper currency they just create digital currency and you have all these lunatics in Washington they want

to use a fedcoin as a way for the Federal Reserve to put money right into the pockets of American citizens see they're tired of quantitative easing for Wall Street where the federal reserve prints money so that Wall Street Bankers can get rich they want the FED to print money so that everybody on Main Street can get rich but the problem is nobody gets Rich by printing money you're just creating inflation if there's a crash in that stock market what's going to happen to the baby blers that's the big question what they have to worry about

is not just the crash of the stock market cuz that could happen but what's going to be worse is if the stock market doesn't crash because the only thing that's going to prevent the stock market from crashing is the dollar crashing instead and that's even worse if you're planning on retiring so I think the baby boom is probably screwed either way unless they act now and completely change their investment portfolios to be prepared for both a stock market crash or a dollar crash they have to be prepared for either one but the dollar crash is

actually worse so how will a dollar crash look different than a stock market crash Peter Well in the dollar crash the stock market goes up but it doesn't matter that it went up because the value goes down anyway I mean go take a look at a chart of the Zimbabwe stock market that market never crashed it went straight up the problem is it didn't go up as much as the Zimbabwe dollar went down you could see the stock market going up but if everything at the supermarket is going up two or three times as fast

you're not getting richer you're getting poor or even though you have a higher net worth in dollars look there are lots of billionaires in Zimbabwe there are trillionaires in Zimbabwe who cares I mean you're a trillionaire but you're broke because the money isn't worth anything so if you think you're going to retire because you got $5 million $10 million you don't know what if $10 million is what it cost to buy a cup of coffee you can't retire on one coffee cup the worst thing you can be in inflation is a creditor so you want

to be a debtor in deflation it's good to be a creditor because the value of the money goes up and if you're the borrower defaults you get their assets if you borrow money to buy a piece of property and everything crashes and you can't pay the loan back the lender takes the property he's got the collateral so he's got something but if the dollar crashes the lender's got nothing he's got worthless money and you've got a piece of property that you basically got for nothing because you don't really have to pay back the money that

you borrowed you borrowed money that had real value and you paid back money with next to no value but the problem for a lot of people who end up owning their home free and clear is you know what if something goes wrong the maintenance costs are going to go through the roof the cost of materials the cost of insurance and then your electric bill all your utilities things are going to Skyrocket in price so you may not have to pay your mortgage but your electric bill may be a lot higher than what your mortgage used

to be don't save dollars because you're just a sucker if you do that so save real money buy gold and silver and accumulate assets real assets outside the United States that pay good dividends and that during an inflationary time period you want to own companies that can immediately pass on their higher costs to their consumers by raising their prices so you want to have businesses where you know the customer is going to pay the higher price because there are some businesses where if you raise your price you're going to lose your customers or there's a

hierarchy of needs and there are certain things that people need and they're going to buy the things they need before the things they want and if the things they need get really expensive well they have to give up some of the things that they want so I want to own the companies that are selling the stuff that people need because that's where you have the most success at raising prices and still maintaining your customers you need these inflation Hedges you got to get out of the dollar you got to understand the enormity of the change

that is about to take place and the profound impact it's going to have on the standard of living in the United States the worst part about it is though the political climate for this crisis could not be worse because capitalism has never been less popular and socialism has never been more horrified and I think a lot of people are going to look at this financial apocalypse really that we're going to have and they're just going to blame it on capitalism they're going to blame it on the rich they're going to blame it on the bankers

and they're going to say the solution is that we just have government do everything government needs to take control government needs to run all the businesses government needs to provide the jobs and all this and and so it's very very dangerous not only to be an investor but to be an American people should have a plan b or a plan C just in case but at a minimum protect your we is bigger than anything we've ever seen before and on the biggest picture of all the coming crash Financial collapse possibly marks the end of the

Industrial Age and the beginning of the information age it's a very big move and the people that are in trouble today are people still stuck in Industrial Age thoughts the people that are struggling financially haven't moved on yet those of you at home right now who are sitting on going but I'm going to lose my job my house my pension and all this it's because you're trapped with all thoughts and as most people know is that you know when I came up with Rich Dad Poor Dad with 20s something years ago mainstream media crucified me

you know they said Rich Dad Poor Dad you don't know what you're talking about you know I said the rich don't work for money Savers are losers your house is not an asset and I was crucified just crucified and and the good news is the most important thing you can have right now is not job security but meaningful work so you and I don't need the money but our work is Meaningful and it's our meaningful work that gets us through the hard times so the good news is my company is sold out we cannot keep

up with product the bad news is the supply chain shut down but that's a good problem we have tons of cash I have gold I have silver I do have challenges in the real estate market but that's going to make me stronger that's my only attitude I can have otherwise I just cry and say well the government should take care of me I need a bailout I need a stimulus and stimulus means welfare for the rich when I talk to young people which drives the school teachers I don't go back to schools anymore because I'm

not politically correct you know what I mean so I went back you know so when I would explained the fit to them I said well just think of Dorothy and The Wizard of Oz you know there was the Tin Man there was a straw man and there was a lion with no heart and so they thought they go see the wizard and The Wizard would give them what they asked for so they PRC on the yellow brick road and they pull back the curtains and back there this big illusion and that's Ben bernacki Janet Yellen

and this guy Powell and before that was that other character forget his name already but they everybody thinks Are wizards but they're controlled by grunch gross Universal cash iist our wealth is stolen via the money we work for we need financial education the real problem of this crisis started back in 1904 when the richest guys on Earth took over the education system United States they formed the thing called the general education board was formed by guys like Rockefeller and JP Morgan and what they pulled out of Education was Financial education and that's why I wrote

Rich Dad Poor Dad it was a warning shot across the bow back in 1997 I said wake up something's coming down the road so we're here right now this is the biggest transformation history of the world is from Industrial Age to Information Age I'm doing well because I made the transition I'm making more money than ever before I have problems but I'm making money more money than ever before but if you have it if you're losing money right now the problem starts in what they were taught in school because they never taught you anything about

money they never taught you about a financial statement like my rich dad did they teach you that the ploma is everything it's a piece of toilet paper BS and you buy into that mechanism ISM of money and you believe that that is the only thing to focus on and what you're saying right now with these stimulus packages is all of this money being given quote unquote Away by the government to everybody is actually devaluing your dollar it's devaluing your pension it's devaluing your savings and it's wiping out businesses so you're dying by this sword this

is how what Fuller talked about the prison is inside our head Buck Mr Fuller it starts with misinformation and misorientation misinformation Mis orientation and he says how dare our schools punish kids for making mistakes how else do you learn if you don't make a mistake and learn from your mistake he says God designed us I'm not really religious I'm not preaching here okay God designed us to learn by making mistakes for instance a baby learns to walk by Falling Down Baby learns you know to ride a bicycle by falling off the bicycle you know Tiger

Wood's the greatest golf run ever in history of the world because he made more mistakes than you and I did but our schools punish you for making mistakes 2008 it was you know those credit default swats it was for residential real estate so they bailed them out this next crash is for the hedge funds and private Equity that invested all this commercial real estate so I have another $100 million project coming out but I just got bailed out I just got backed up by the fed and the government so that's why it's socialism for the

rich unfortunately there capitalism for the poor middle class those that work for money you're on your own right you know if you own a small restaurant and you got to let go your staff you're no different than your staff right now the national debt for World War II was 25 billion every day today they're printing 125 billion every single day that's like five world war I's per day they're printing so much money to keep this B this think of a hot air balloon with a tear in it and they're doing desperately trying to fix this

tear no matter how hard they try the tear is gone beyond it's coming down so in financial terms it's called our debt to De GDP has now gone from 60 to 90 to 105 is going to 120 we're bankrupt and they're going to print more and more money which means Savers are losers just as I predicted your money is going to be worthless in a few years so my message is this is metamorphosis Time Financial education is really Financial transformation and definition of metamorphosis is very important metamorphosis the definition is the evolution or the transformation

from an immature form to an adult form an immature form to an adult form metamorphosis is the same as a caterpillar turning into a butterfly and Fuller always said there's nothing to predict a butterfly inside a caterpillar so everybody listening right now if you're struggling financially just think of yourself as a little caterpillar and this crisis is your cocoon the question is what do you emerge as do you emerge as a victim you know the world did it to me and the the capitalists are Crook and the rich are bastards and all this stuff or

do you say oh this is the best thing that ever happened to me the choice is between your head your heart your body your mind your spirit that's where the choice the metamorphosis the evolution or the transformation from an immature form yeah Mommy Daddy going to take care of me mommy and daddy going to pay for my education the government's going to give me Social Security I have 401k you know the my employer is an you know you're going to evolve from that into an adult that's metamorphosis it does sound like a little kid if

you grow up mentally emotionally spiritually physically financially and healthwise voila this is the best thing that happened to me but if you're still a victim you're not going to make it the metamorphosis begins when you look in the mirror and it's just like when I was going to blow this little boy's head off in Vietnam so why am I doing this you know why am I going to kill this little 10-year-old boy and he was a Viet Kong I mean I was justified by the rules of engagement to shoot him but one day I once

why am I doing this and if you're standing in front of the mirror today you know with this glooming depression how did I get here's the question what don't I know what did my information education cultural background what did not prepare me for today that's where the transformation of the metamorphosis begin you take responsibility you know you know everybody talks about rights but we have personal responsibilities too and unfortunately our University Systems have failed us miserably and the reason for that is every Professor wants tenure that's my whole family that was the most important thing

about getting a job was tenure job security for life and that's what they teach kids without knowing it they teach kids that life is dangerous and you need to have be protected so they're immature College professors are some of the most immature they might be very smart mentally but immature financially they can't take care of themselves so they're teaching kids to be victims you know that's why these trigger mechanisms and you can't say words that are hurtful and all this stuff so they're teaching that you're a victim You're vulnerable and what you teach and what

I teach is that hey this is don't be a victim be proactive um can you just talk me through a few asset classes and explain kind of what's going on because I still think it's important for you to walk us through some Basics Robert and whether that's real estate or oil or gold and silver which you call God's money maybe you can give us all just a quick education on kind of some of that stuff and I also heard you talking about something called the US crypto dollar I don't know maybe you could Define some

of those things for us right now well gold and silver were here when the earth was formed you know what I mean it'll be here long after we're gone it's God's money God made it and you know in our language it's called counterparty risk there's no counterparty risk your counterparty is God that's pretty good that's like a co- Center is God you know I mean the banks will back you up who's your who's your uh Co Center Jesus Buddha Muhammad you know okay we'll give you the money so gold has that now gold goes up

and down because the gold market is manipulated you know the Futures Market the ETF market and then physical gold so the thing I think is interesting is the price of gold goes down but you can't buy any gold at the physical market so the Futures Market is coming down the GLD price is coming the paper Market is coming down but physical you can't get anything on it why it's because the rich are hoarding it the rich are hoarding gold and silver like toilet paper and guns the poor in middle class are calling their financial planner

and the financial planners telling them to stay in it for the long term and meanwhile the rich are getting out wake up is my message the reason I love real estate is I don't use my money I use my bank's money it's called debt all I have to show the banker how I'm going to make money with the bank's money that's all I have to do what I said is good debt and bad debt most people have bad debt bad debt is debt you pay for like credit card debt your mortgage car payments good debt

is somebody else pays for you so I have 6,700 apartments at 6,700 people paying my mortgage for me so I I took a real estate course when I came back from Vietnam cost me 385 bucks that $385 has made me a multi-millionaire over and over and over again whereas my friends went got their MBA they're still they're afraid of getting fired