Robert Kiyosaki, author of "Rich Dad Poor Dad," wrote on Monday (December 11) that the market is repeating the 2008 subprime mortgage crisis, which could be the beginning of the largest collapse in history, and he called on investors to withdraw cash from banks as soon as possible. He also proposed a timeline stating that the Great Depression lasted for 25 years from 1929 to 1954, and the market needed to think about how long it would take for people to get out of the Great Depression that entered in 2020.
The latest data from the US Treasury Department shows that the US treasury bond increased from US $33.637 trillion on November 1 to US $33.878 trillion at the end of November, an increase of US $2.46 trillion year on year.
"Bank credit was sold off like in 2008, because you needed cash, so you withdrew some cash from the bank. This may be the beginning of the biggest crash in history, I hope I'm wrong, but there's no time to play Russian roulette with your life," Kiyozaki wrote.
He mentioned last Saturday: "The Great Depression lasted for 25 years from 1929 to 1954, going through World War II and a large amount of counterfeit currency to get out of the previous one. How long did it take you to get out of the Great Depression that entered in 2020, when Biden became president and immediately cut off the Keystone pipeline, causing inflation to skyrocket? He also immediately hired 87000 new tax collectors. It is easy to see that Biden's plan is to steal your wealth through inflation and taxation."
"The duration of the New Great Depression will depend on you, who you work for, who you work with, and who your friends are. If you're prepared, the next Great Depression may be the best thing you've ever experienced. Good luck," he added.
He also pointed out last week that a soft landing of the US economy is a fantasy, and the possibility of an emergency landing is even greater. He explained, "I warned in my book '2012 Rich Dad's Prophecy of the Bar' that this huge collapse could escalate into a Great Depression in the next one. 2024 is an election year, so please vote for conservatives, not like Biden."
In a new interview with Fox Business, Kiyozaki stated that the tendency of the United States to print more money has damaged the country's fiscal foundation. "(Cash) has become garbage, so they just keep printing, printing, printing. All you have to do is look at history. Every time they print money, the empire will decline. I don't want to say that because I love America, but America is in serious financial difficulties due to its debt burden."
He has always been openly optimistic about gold and silver as tools to hedge against currency depreciation. He stated that cash will continue to depreciate because he does not believe that the US government will stop printing money.
In an exclusive interview with GoldSeek.com, Kiyosaki said: "The US treasury bond is soaring. So I hope I am not a gold fan, but gold is the only self-defense mechanism at present. And silver, I also like silver. Just because they can not be printed. This is my philosophy. If they can print it, I don't want it."
Kiyozaki explained, "I don't want to say that, but inflation will continue. Impossibility will continue to exist. They will continue to print more money to repay their debts unless we reduce welfare or military spending. We won't do this. I would rather have gold than cash because they can print."
"The worst thing is our treasury bond. We are bankrupt, why don't we say that? We just can't continue to print more money to repay the debt, which is really the problem. We just continue to print money to solve our problems, and we can no longer continue to go down," he continued to criticize.
According to predictions from the US Social Security Administration, if major reforms are not implemented, trust funds will be depleted by 2035, according to Kiyozaki. But he believes that even 2035 seems too optimistic. Kiyozaki pointed out that as the number of retirees from the baby boomer generation increases, it puts pressure on already struggling finances, and factors exacerbating the financing crisis have emerged ahead of schedule.
He stated that the prediction made by the Social Security Administration is that if emergency adjustments are not made, the trust funds of the system will be depleted by 2035. However, Kiyozaki believes that this prediction may be too conservative. According to his analysis, he predicts that there will be more urgent liquidation as 2030 approaches.
The main evidence for Kiyozaki comes from the wave of baby boomers withdrawing from the labor market and flooding into the social security package, an unprecedented influx of beneficiaries that has resulted in payments exceeding sustainable levels based on current wage taxes and planned income. Kiyozaki attributed the early and extended retirement time of the baby boomer generation to this accelerated consumption.
Therefore, although the US authorities' model did not fully consider the absolute number of baby boomers overwhelming the funds of the past decade, Kiyozaki warned that they would accelerate the depletion of reserves.
Kiyozaki stated that considering all factors that endanger the survival of social security, millennials cannot passively wait for their parents or grandparents to receive the same government benefits. Although actively funding social security throughout their entire career through mandatory payroll taxes, Kiyozaki emphasized that the millennial generation must assume that they will never receive any safety net upon retirement.
He finally mentioned that the millennial generation must immediately establish retirement investment accounts under their direct control to protect themselves. This may mean minimizing costs as much as possible and continuously investing these additional funds into savings and mutual funds, which may grow over time.
