Financial educator Robert Kiyosaki has a long history of forecasting potential economic crashes on multiple occasions.
Once again, the investor doubled down on his grim outlook with his latest update cautioning that a “giant market crash” might already be underway.
Amid this purported economic downturn, the ‘Rich Dad Poor Dad’ author expressed skepticism toward current financial management.
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He criticized the Federal Reserve, the Treasury, banks, and Wall Street for what he describes as an over-reliance on money printing, which he argues exacerbates economic instability, Kiyosaki said in an X post on January 4.
Kiyosaki contends that inflation caused by fiat currency disproportionately benefits the wealthy, who own tangible assets while eroding the purchasing power of the poor and middle class. He emphasized that inflation and taxes continue to widen the wealth gap.
Hedging against economic collapse
As a hedge against the economic turmoil, the investor reiterated his advocacy for gold, silver, and Bitcoin (BTC) investments. He urged individuals to prioritize hard assets over cash savings to navigate ongoing economic challenges better.
“GIANT MARKET CRASH here. <…> When fake money is printed the rich, who own real assets get richer…. while the poor and middle class, who save fake money, get poorer due to inflation and taxes. Let inflation make you richer, not poorer. Save gold, silver, and Bitcoin. Take care. Crash is here,” Kiyosaki said.
A long-standing critic of fiat currency and government monetary policy, Kiyosaki’s latest warning aligns with his previous predictions. Notably, as reported by Finbold on December 13, Kiyosaki had warned that the global market crash had already begun.
At that time, he advised investors to prepare by selling real estate while prices are high and reallocating funds into hard assets like gold, silver, and Bitcoin.
He also cautioned against relying on traditional retirement accounts, such as 401(k)s and IRAs, instead advocating for diversification into cryptocurrencies, precious metals, and alternative investments.
Criticism of Kiyosaki’s economic crash prediction
This warning from Kiyosaki comes as the Federal Reserve adopted a hawkish outlook for 2025. The policy statement issued in December led to adverse reactions in the stock market, with many equities posting losses.
However, critics highlight Kiyosaki’s history of making sensational market predictions, some of which have not materialized. His track record has drawn skepticism and mockery from those who view his projections as overly dramatic.
Kiyosaki’s warning about excessive inflation may seem exaggerated, given the Federal Reserve’s efforts to manage it despite remaining above the 2% target.
While economic uncertainty persists, post-crisis banking regulations have strengthened financial institutions, reducing the risk of systemic collapse. The author had already warned that a banking crash had begun after Oklahoma’s First National Bank of Lindsay collapsed late in October as the regulators intervened after they detected signs of fraud.
Overall, the idea of an inevitable crash doesn’t fully reflect the complexities of modern economic management and global interactions. Ultimately, predicting market tops and reversals remains notoriously difficult, even for seasoned investors.
Featured image via Cavaleria Com YouTube
