The bestselling author Rich Dad Poor Dad predicts that a “giant” market crash coming in October has already been triggered and will bring with it gold, silver and Bitcoin.
Personal finance expert Robert Kiyosaki has warned that the crash will come regardless of whether the US debt ceiling is raised or what measures are imposed by Treasury Secretary Janet Yellen or the Federal Reserve chairman. Jerome Powell.
“This is going to be the biggest crash in world history. We’ve never had so much debt… the debt/GDP ratio is out of sight,” Kiyosaki said.
Kiyosaki said that the Treasury Department and the Federal Reserve were artificially inflating the stock market with decisions disconnected from the realities of the current economy in the United States.
The reason Yellen and Powell are “fighting,” he said, is that they have expanded the volume of money while the velocity of money is plummeting because no one is spending and their cash remains in savings.
Kiyosaki said people don’t have to go to Harvard University to understand that “you can’t keep printing counterfeit money…that’s not good.”
“So they pump all this money in, prices go up,” he told Kitco News on Wednesday. “So it’s transitory inflation, but we’re stacked with this massive debt and all it’s done is boost the stock market and the housing market.”
“Money hasn’t entered the economy, that’s the sad part. So the rich get richer, but the poor and the middle class get poorer. It’s tragic what’s happening today.”
The aggregate before the “house of cards” is collapsing and real estate would crash with the stock market, while the impact of the implosion of China’s Evergrande Group would spread to the United States.
Evergrande, China’s second-largest developer, is on the verge of bankruptcy with more than $300 billion in debt, the most indebted company in the world.
Kiyosaki is best known for his 1997 book Rich Dad Poor Dadwho advocated for financial education that rich parents taught their children about money that the poor and middle class did not have.
While a big market crash will spell financial disaster for foolish investors, Kiyosaki says the impending doom of the market is an opportunity for smart investors.
“I like dips so the next dip is going to be very very good but it will bring down gold, silver and bitcoin stocks but the good news is a dip is a great time to get rich that’s why it’s I am bullish and very bullish on gold, silver and Bitcoin, not stocks,” he said.
“So when it goes down, and it’s going to bring everything down, that’s when I’m going to buy more gold, silver and Bitcoin.”