Renowned investor Robert Kiyosaki has issued a warning about an impending financial crisis. During a recent interview on The Rich Dad Channel, Kiyosaki revealed that an economic tsunami is on the horizon. This crisis will impact investors in the United States and across the globe. Kiyosaki’s comments came during a conversation with fellow finance expert George Gammon. The Rich Dad Poor Dad author focused on the actions of the United States Federal Reserve and how they could affect banks and, in turn, the broader financial markets.
Kiyosaki also highlighted the inversion of the yield curve and its potential to lead to a recession. The three-month Treasury Bill in the US has been yielding more interest than the 10-year Treasury Note. Historically, this has been seen as an indicator of an incoming recession. Kiyosaki and Gammon likened the inversion to a tsunami warning system.
Following the release of the Federal Open Market Committee’s Minutes, investors celebrated the Federal Reserve’s pivot. However, Kiyosaki cautioned against interpreting the pivot as a sign to invest in risky assets. The investor advised maintaining a large cash position with 10% in physical gold and short-term treasuries to avoid counterparty risk.
Kiyosaki also discussed the United States’s plans for a Central Bank Digital Currency (CBDC), indicating that the CBDC path may not be in the best interest of privacy. “The big concern with the FedNow CBDC is that we lose our privacy, that they will track us, they will track our every move because they will know everything that we spend money on, what we spend it on, who we give it to, and all that,” he added.
Kiyosaki’s warning about an impending financial crisis comes at a time when the global economy is still reeling from the impact of the COVID-19 pandemic. The pandemic has led to widespread job losses, business closures, and a significant decline in economic activity. Governments and central banks have implemented various measures to mitigate the effects of the pandemic, including stimulus packages and low-interest rates.
However, Kiyosaki believes that these measures may not be enough to prevent a financial crisis. He argues that the actions of central banks, such as the Federal Reserve, may be exacerbating the situation. Kiyosaki has been critical of the Federal Reserve’s policies in the past, particularly its low-interest rates, which he believes are contributing to a bubble in the stock market.
Kiyosaki’s warning should not be taken lightly. He has a track record of accurately predicting financial crises, including the 2008 financial crisis. Kiyosaki’s advice to maintain a large cash position with 10% in physical gold and short-term treasuries is a prudent strategy for investors looking to protect their portfolios from the impact of a financial crisis.
Moreover, Kiyosaki’s comments about the potential risks of a CBDC should be heeded. While a CBDC may offer benefits such as faster and cheaper transactions, it could also pose risks to privacy and security. Governments and central banks must carefully consider these risks before implementing a CBDC.
In conclusion, Robert Kiyosaki’s warning about an economic tsunami should serve as a wake-up call for investors and policymakers alike. While the global economy has shown some signs of recovery, the threat of a financial crisis looms large. Investors should take steps to protect their portfolios, and policymakers must consider the potential risks of their actions carefully.