Not long after warning that the biggest stock market crash in history has already started, a renowned investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad’, Robert Kiyosaki, has alerted of what he believes to be a “total collusion” between the United States Federal Reserve and Wall Street.
Indeed, Robert Kiyosaki discussed how to best prepare for market volatility as he sat with his wife and fellow investor Kim Kiyosaki, his investment advisor Andy Tanner, and financial expert Nomi Prins for an episode of The Rich Dad Channel podcast streamed on September 18.
Depths of collusion between Wall Street and Fed
According to Kiyosaki, the U.S. central bank is in cahoots with the CEOs of the largest companies on Wall Street, abusing the country’s economic flows and using the “fake money,” or the U.S. dollars, to achieve their own financial advantage, explaining the process as follows:
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“Fake money goes into the CEOs of Wall Street, and they buy back their stock, which makes the stock market boom, but that money doesn’t go to increase production. True money comes from production, like if I’m a farmer and I produce cabbages, that’s production, but what the Fed does, it gets the money, and these boys in Corporate America take that money, they buy back their stock, and they parachute out under capital gains. It’s a total collusion with Wall Street.”
On the other hand, he reiterated his view of market crashes as the ideal opportunity to increase one’s wealth, pointing out that “Kim and I get very rich during market crashes,” highlighting the Fed’s fear “right now because if this bubble starts deflating, they’re going to crash, and then they’re going to have to do stupid things.”
‘Most stupid thing you can do today’
Meanwhile, Kiyosaki opined that the “most stupid thing you can do” during market volatility is “invest for the long term in a well diversified portfolio of stocks, spots, mutual funds, and [exchange-traded funds (ETFs)],” but that this is precisely what the school system has taught the Baby Boomers to do:
“You got to be prepared for if [the market] goes up and prepare for when it comes down, and the lie they’ve told to all the Baby Boomers is to invest for the long term in a well diversified portfolio of stocks, spots, mutual funds, and ETFs – that could be the most stupid thing you can do today.”
At the same time, he expressed his view that telling people what to do, as the current education system does, is not a good way to teach financial literacy and that the biggest victims of this practice were in his own generation – the Baby Boomers – who have heavily invested in their 401ks.
In the words of the popular finance educator, the best way to learn is through making mistakes, and “when the school teachers tell you ‘don’t make mistakes,’” they are condemning their students “to retardation because those mistakes are absolutely priceless,” and the “Baby Boomers will be the biggest losers.”
“The biggest losers are people who never lost. You know, those people sitting on their 401ks right now, my generation, the Boomer generation, they’re in serious trouble right now because (…) this house of cards is on the verge of coming down anyway.”
Robert Kiyosaki debt lessons
As a reminder, Kiyosaki has long considered the U.S. Federal Reserve and its policies “criminal,” as he argued that it is breaking the law with its actions and that the only way to protect one’s wealth is to invest in assets like gold, silver, and cryptocurrencies like Bitcoin (BTC).
More recently, he also warned that the U.S. national “debt is going to kill us,” pinpointing the problem of the increased issuance of the U.S. Treasury bonds as contributing to the debt that, in his opinion, will “torpedo” the U.S. economy, earlier stating that the Fed would not “save our butts” in that case.
Featured image via Ben Shapiro’s YouTube.
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