Robert Kiyosaki, co-author of the best-selling book “Rich Dad Poor Dad”, voiced his concerns on Twitter about the state of the U.S. economy. He mentioned a few red flags: Real estate is crashing, foreclosures are up by 700% from last year and widespread layoff are starting.
According to Kiyosaki, this could lead to what he called a ‘Greater Depression’.
It’s not clear if he was drawing a comparison to the historic “Great Depression”, which haunted the world in the 1930s and turned out to be the worst economic crisis in recent history.
But he nevertheless urged people in his Tweet to check if they and the companies they worked for were indispensable for the economy. He emphasized that it was only people working for companies that were vital to the functioning of the economy that did not need to worry. This is not the first time Kiyosaki has warned about the economy or made doomsday predictions.
Is the 1929 Stock Market Crash Repeating in Front of Our Eyes Right Now?
In August 2020, Robert Kiyosaki warned that asset prices were reaching dangerous levels and predicted a painful and prolonged slump in financial markets and the economy as a whole. He repeatedly pointed out that the economy works in cycles. In 1929 there was a giant stock market crash, which was followed by the “Great Depression”. The current state of the economy, according to Kiyosaki, is flashing similar warning signs as in 1929.
In April, he predicted that the U.S. dollar would soon implode, reiterating again in May that the worsening economic situation could result in an economic depression and even civil unrest. The New York Times bestselling author had been predicting a crash for a while, as far back as 2016, but with inflation hitting a 40-year high, home sales slowing down and a wave of layoffs at JPMorgan, Microsoft and Tesla, investors shouldn’t ignore Kiyosaki’s warnings.
The Generational Wealth-Building Opportunity
The personal finance guru advised that with the price of assets falling every day this was an opportunity to scoop up bargains, dubbing it “The Greatest Sale on Earth.” He also hinted that maintaining a cash position and buying real estate, gold, silver and bitcoin, which cannot be debased by central banks, was a way to stay safe and protect wealth during these turbulent times.
To the surprise and amusement of some, he also revealed that he was waiting for the price of Bitcoin to drop to $1,100 so he could buy more of it.
However, many analysts and Bitcoin experts believe this to be a price level that we will never see again. Despite some people believing that the bottom could be in, bitcoin and other assets could definitely see a continued sell-off.
Especially if Kiyosaki’s predictions of a ‘Greater Depression’ come true, investors should expect more downside. A lot more downside.
Kiyosaki also offered some seemingly strange advice to Americans in the face of rising costs of food, housing and fuel. He mentioned that household essentials like toilet paper were a good investment as inflation would make them much more expensive. He also proposed that canned food like tuna and baked beans were also a good investment, probably even better than gold and bitcoin because they are edible, in the event of food shortages and starvation, which he sees as a genuine risk.
