Robert Kiyosaki: The Biggest Crash in World History Hits This October
Robert Kiyosaki is an entrepreneur and financial guru. He has written 26 books until now from which one of the books is an international seller, Rich Dad Poor Dad. In an interview with Kitco NEWS, Robert Kiyosaki was asked different questions based on finance, cryptocurrency, and a market crash coming in October 2021.
He was sad that if there will be no increase in the debt limit then it can lead the U.S to its biggest financial crisis in history. This crash has already been triggered because due to the pandemic the spending is more than the revenues. When people spend more than they get from the bank it always hit the economy in a bad way. But here Robert says that crashes are always good because a crash is a good time to get rich. During a crash gold, silver, and bitcoin prices will get low and it is the best time to buy them because you make a profit when you buy not when you sell them.
How Does a Crisis Happen?
Robert explains how an economic crisis happens in simple words. The economy of any country is good when the velocity of money is high and spending is less. But in the U.S, the velocity of money has gotten much lesser than before it means that the spending is high and people are stuck with debt. No money is going back to banks and the government. The cost of buying stocks and the real estate market is also getting high. Prices on things of daily life needs are also getting high. The velocity of money is less it means that the money is not going to the economy. It means that the rich are getting richer and the poor are getting poorer.
Effect Of Pandemic
A country can't print fake money to increase the amount of money in banks as it will affect the value of the currency. When the velocity of money is low and debt is high then it means that people are saving more and more money than spending it. Also, the pandemic has a great effect on it too. Before COVID-19, people were more likely to travel for their meetings and has to pay for the plane tickets and now it is replaced with zoom meetings. So, in an economic crisis, technology is playing a great role. Now people don't have to buy tickets, they can save money and have meetings via zoom.
This is the biggest crash in history because debt is too high. Also, there is a separation between the stock market and the economy and it is worse than before. Because the money is staying only in the investor's market. So, when the treasury of the U.S does something then only investors get richer but still, money doesn't go back to the economy. Every professional investor knows that they can make a profit when there is the right time to buy it not when to sell it. The people who bought Bitcoin when it was $6000-$7000 are now benefitted from it. When Bitcoin got high at this point to $40,000 then the treasury invested money in crypto, not in the working class. Now when there is a crash there will be unemployment.
Robert always says that you make profits when you know the exact time to invest. Before a person invests in something he should do some research on that. For example, bitcoin was $20,000 and then from this price, it fell to $7000 and then went up to $41,000. So, here the philosophy of Robert proves itself right.
Later in the interview, Robert was asked to give reviews on Fedcoin too. He said that the fed coin is the central control of the economy and lives. Fedcoin is the digital dollar. The first gold was replaced with paper money and now paper money is being replaced with digital money. With this paper currency, the government can monitor everything people do and how they spend the money. So, it is like that the government is taking the freedom away from spending the money.
First of all, China started it and maybe wants to take right away from Gold, Silver, and Fedcoin. Also, there are some predictions that the government may call Bitcoin illegal due to Fedcoin. Here, Robert suggests that people should move out of the treasury and Fedcoin if they want their freedom and should invest in Bitcoin.
Robert says that Fedcoin is stepping into fascism. Government can control and track everything we do but gold and silver cannot be tracked. So, here Robert suggests that people should keep gold for saving and silver for spending. Also, in the end, he advises people to invest in things that are real and will last forever such as real estate.