Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad,” has projected a possible end to the United States dollar’s global domination as the world reserve currency.
According to Kiyosaki, the U.S. has been a ‘bully’ for a long time due to its position as the reserve currency while referencing the possible end of domination using Gresham’s law, he said during a Rich Dad Radio session on March 21.
The financial educator noted that Gresham’s law which states that “bad money drives out good money,” is now in action. He likened the dollar to “toilet paper” and asserted that silver and gold are the “good money” that will likely replace the dollar.
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“We’re watching the end of the American empire, and there’s a law called Gresham’s law. <…> This is bad money here; it’s called the U.S. dollar. I call it toilet paper today, and this is good money here; this is silver, and this is gold. So Gresham’s law is in action today. <…> America has been kind of a bully because we had the reserve currency of the world,” Kiyosaki said.
Indicators of U.S. dollar domination end
The author pointed out an indication of the domination’s end can be viewed from other countries forming economic alliances. He cited the growth of BRICS (Brazil, Russia, India, and China) member countries that are opting to transact in another form of currency.
He further suggested that the world has had enough of the transacting in the dollar while supplying the United States with real goods.
“What the U.S. has been doing for a long time they’ve been shipping people toilet paper, and they’ve been shipping us commodities like wheat, grain oil, food, gold, silver for finished goods. <..> All the people have been giving America cheap or wonderful goods for toilet paper, it’s coming to an end,” he added.
Gloomy dollar outlook
Indeed, Kiyosaki has previously warned the continued devaluation of the dollar will likely make the currency worthless, especially with the excessive printing. In this line, he has termed the dollar ‘fake money.’
As reported by Finbold in February, the renowned investor stated that the fake dollar was pushing the ‘American empire to its end.’ While issuing a gloomy outlook for the dollar, Kiyosaki has advocated for investment in precious metals and cryptocurrencies with a special focus on Bitcoin.
In the meantime, Kiyosaki projects a possible global economic crash that has been worsened by the rising inflation, which he blames the Federal Reserve for failing to contain.
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