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‘Rich Dad’ R. Kiyosaki warns ‘debt is going to kill us’

‘Rich Dad’ R. Kiyosaki warns ‘debt is going to kill us’
Ana Zirojevic

As he continues to warn about the looming widespread economic crash that he believes will sweep the United States and the rest of the world, prominent investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad’ Robert Kiyosaki has specified some of the particular dangers.

Specifically, Kiyosaki referred to the increased issuance of the U.S. Treasury bonds as contributing to the debt that, in his view, will “torpedo” the U.S. economy, as he discussed the topic with financial expert Adam Taggart for an episode of his The Rich Dad Channel podcast streamed on September 12.

As a reminder, Treasury bonds refer to long-term debt instruments issued and sold to finance government spending and allowing the buyer to trade them in secondary markets. However, the ‘Rich Dad’ author opined that they might not be the best type of investment because interest rates are growing faster than ever.

“As interest rates kept coming down because they wanted people to borrow and stimulate the economy, our debt went [up]. (…) As the interest rate came down, the Fed (…) printed more money, and our national debt owed by the taxpayers kept going [up]. But the moment they raise the interest rate, that debt is going to kill us because it’s too expensive.”

Furthermore, Kiyosaki pointed out that the U.S. taxpayer pays this debt and suffers for something that the government has done, arguing that “mom and pop get scr–ed again because they used that cash to lower interest rates to bail out the banks that were in trouble in 2008.”

Bitcoin versus bonds

At the same time, the finance educator reiterated his preference for “real assets” like gold, silver, and Bitcoin (BTC) over “fake assets” like U.S. bonds and has recently shared his view that the maiden cryptocurrency might explode soon due to the upcoming Federal Reserve monetary policy.

Earlier, he also expressed frustration with the debate over which asset is better – gold or Bitcoin – stressing that the “only facts that count” are the ownership of the assets and that it was like discussing whether to own a Ferrari or a Lamborghini while others have neither, as Finbold reported on September 14.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Featured image via Kitco YouTube

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