Amid repeated warnings of the looming downfall of the United States dollar, Robert Kiyosaki, the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ has stressed what he believes are the biggest shortcomings of the country’s current economic situation, including the student debt.
Specifically, Kiyosaki was discussing the potential launch of a gold-backed currency by the BRICS (Brazil, Russia, India, China, and South Africa) countries with his guest Andy Schectman, the CEO of Miles Franklin Precious Metals Investments, in the latest ‘The Rich Dad Channel’ emergency podcast premiered on July 19.
According to Kiyosaki:
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“China is already using blockchain, and the possibility is that the BRICS – Brazil, Russia, India, China, South Africa, possibly Japan, and Mexico are going to say ‘we’re going to shift to a gold-backed yuan,’ (…) so what does that mean to the dollar, you and I, who have mortgage based on dollars, or credit cards or car payments, our paychecks are in dollars?”
Moreover, the finance educator believes that “if and when in August [the BRICS countries] switch to this global currency, trillions of dollars held in reserve will have to go somewhere, and they’re either going to go into gold, or they’re going to come back to the US.”
On student debt
As Kiyosaki highlighted, one of the major problems with the US economy that could contribute to its downfall, in addition to the dollar’s demise as the global reserve currency, is student debt, which, according to Schectman, comprises 41% of the US government’s balance sheet:
“Student debt went through the roof, now it’s our biggest asset. I mean, we’re bleeding the pockets of our students,” Kiyosaki stressed.
Indeed, according to Schectman, the assets of the US government, in line with its 2022 balance sheet, amount to $5 trillion, of which 41% is student debt, “and on top of that, we have $151 trillion in liabilities. So the question becomes, how do you pay that off?”
Evasive action
Furthermore, the ‘Rich Dad Poor Dad’ author stressed investing in gold, silver, and the flagship decentralized finance (DeFi) asset Bitcoin (BTC) as part of the evasive action he advises considering in the incoming recession, particularly as “gold keeps going up while the dollar’s purchasing power keeps going down.”
“And when they bring more dollars on shore, if they shoot down this big fat balloon sitting in the sky called the US dollar, you’re going to wish you had more gold and silver,” he warned.
As a reminder, Kiyosaki has long warned of an upcoming massive recession, arguing that the US economy was on the “Eve of Destruction,” referring to the popular 1960s song, and more recently expressed his belief that the next BRICS meeting in August would “put (the) nail in (the) coffin of fiat money.”
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