As the world is still reeling from the shock caused by the crash of several major banks within days of each other, Robert Kiyosaki, author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ has warned about the possible role of the United States dollar in the financial collapse that he believes is threatening America.
Specifically, he and his guest Andy Schectman, the CEO of Miles Franklin Precious Metals Investments, discussed the BRICS nations – Brazil, Russia, India, China, and South Africa – positioning themselves as an alternative to the West in terms of global financial and political forums and challenging the dominance of the US dollar with a new currency, in a podcast streamed on April 5.
“America has been violating all of these laws of money for all these years, and the world says, ‘We’ve had enough of this,’ so they’re joining the BRICS. (…) That means 70% of the world’s population that used to use the dollar is going to take [it] and say, ‘We don’t want it anymore.’”
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Triffin’s dilemma at play
According to Kiyosaki, what is currently at play is the implications of the so-called Triffin’s dilemma, named after Belgian-American economist Rober Triffin who, in 1960, exposed a fundamental problem in the global monetary system that led to a trade deficit as the country printing the international reserve currency had to be willing to provide an extra supply of it to fulfill world demand.
As the ‘Rich Dad Poor Dad’ author explained, holding a US dollar bill in his hand, this “meant that, for the US dollar to be the world’s money, a reserve currency in 1944, they had to print extra of this, so the whole world had this in their banks (…), they had more of this stuff than any other product in history,” This is toilet paper.”
“So what’s gonna come back is a tidal wave of this toilet paper upon America and this little $35 [silver] coin here – I don’t like to make predictions – but I’d rather have this than this [dollar] here. And it’s really tough to get people to say, ‘No, I’d rather have toilet paper,’ it makes no sense to me.”
Alternatives to ‘toilet paper’
Finally, Kiyosaki had one last warning for his viewers, arguing that “when these things start to explode, and [the countries] don’t want them anymore because the BRICS is gonna take this down, you’re gonna wish you had some more of these $35 silvers because this is still real money.”
As a reminder, the author has had scathing views of the American currency for quite a while, recently projecting a possible end to the US dollar’s long-time global domination as the world reserve currency and referring to it as “toilet paper.”
Instead, he has long been recommending his viewers to purchase the flagship cryptocurrency Bitcoin (BTC), as well as precious metals – silver and gold – and warning that the inflation in the US was now systemic as he criticized the authorities for not accurately presenting the situation, as Finbold reported on March 19.
Featured image via The Rich Dad Youtube Channel
Watch the entire video below:
