Robert Kiyosaki, author of the bestselling book “Rich Dad Poor Dad” and a vocal commentator on global investment, has again advised investing in traditional and digital safe haven assets amid economic uncertainty. He claims that his warnings about the current state of the global economy were already given in his 2013 book, “Rich Dad's Prophecy.”
Kiyosaki described America's declining credit rating and escalating debt crisis as serious, indicating a potential recession. He stated that America's current economic predicament could significantly impact global financial stability for an extended period.
America's Credit Rating Downgrade
Moody's recently downgraded America's credit rating from AAA to AA1. The agency cited the US government's failure to control its rising debt and interest payment pressures. This rating cut is considered a serious warning for a global economic leader like the US.
The White House responded sharply to this rating. Steven Cheung, the White House Communications Director, labeled Moody's chief economist, Mark Zandi, as politically biased.
Recession Signals and Kiyosaki's Response
Robert Kiyosaki attributed Moody's rating downgrade to the weakening infrastructure of the American economy. He compared the situation to a father who continues to maintain a household using borrowed money despite being unemployed.
According to Kiyosaki, Moody's downgrade signals that interest rates may rise further, the real estate and bond markets may decline, and the banking sector could face serious repercussions.
He expressed concern that if the situation remains unchecked, America could head towards a repeat of the 1929 Great Depression.
Kiyosaki's Investment Advice
Kiyosaki identified three investment options as the safest and most practical in the current economic climate: gold, silver, and Bitcoin. He believes that traditional currencies are depreciating and these assets retain value during economic instability.
He stated that recessions create genuine opportunities, as assets become cheaper, offering higher returns after market recovery.
Emphasis on Entrepreneurship
Kiyosaki once again urged people to pursue entrepreneurship instead of relying on traditional employment. He argued that market downturns generate new business and investment opportunities. According to him, acquiring assets and starting businesses during recessions is easier due to reduced competition and cheaper resources.
Highlighting Bitcoin's Importance
Robert Kiyosaki's stance on cryptocurrency has been consistent. He has publicly referred to Bitcoin as "digital gold" on numerous occasions. He believes Bitcoin is no longer just a digital currency but a robust means of economic security, especially when the traditional banking system is under stress.
Robert Kiyosaki's recent comments come at a time of pressure on the global financial system and ongoing market volatility. His advice offers investors renewed cause for reflection amidst the US debt crisis, declining credit rating, and global trade uncertainty.
He reiterated that the warnings he issued in 2013 are now becoming a reality. It remains to be seen how seriously investors and the general public will take this warning.
