On Wednesday (September 29), Robert Kiyosaki, author of the best-selling book “Rich Dad and Poor Dad”, said that the entire market, including Bitcoin, gold and stocks, will face a severe crash in October.
In an interview with Kitco News Chief Editor Michelle Makori, Kiyozaki explained the economic factors that led to the crisis and emphasized the severity of the upcoming market downturn.
“This will be the biggest crash in the history of the world. We have never had such a huge debt. Debt is the biggest of all problems… The ratio of debt to GDP is out of sync. So when it falls, everything will follow. If it falls, then I will buy more gold, silver and bitcoin.” Kiyosaki said, “The S&P 500 index is actually the S&P 7 index, which was boosted by Treasury Secretary Yellen and Fed Chairman Powell. The economy has nothing to do with what Yellen and Powell did.”
He emphasized that prices will rebound after the market crash, and pointed out that this may be a good opportunity to buy, but only for certain assets.
“I’m a bit weird because I like crashes. The next crash will be very, very good. It will cause gold, bitcoin and stocks to fall, but the good news is that the crash is a good time to get rich,” he added, he still Long-term optimistic about non-equity assets. “That’s why I am optimistic, and I am very optimistic about gold, silver and Bitcoin, not stocks.”
Kiyosaki’s remarks come as the U.S. House of Representatives will vote this week on the suspension of the U.S. debt ceiling. If Congress cannot reach an agreement to raise the debt ceiling before the October 18 deadline, the government will face the risk of defaulting on its existing debt, which is unprecedented.
Kiyosaki said that the artificial force supporting the stock market, that is, the expansion of the money supply, has also created a debt bubble. He added that inflation is unlikely to continue.
“The biggest debate is (existing) inflation or deflation. Historically, nominal debt and GDP are related to M2, the quantity of money, and the velocity of money. The reason why Yellen and Powell panic is that they expanded M2, so everyone thinks There will be inflation, but the velocity of money is declining. People no longer consume. So, they inject all the money and the price rises, so this is temporary inflation. But the problem is that we are trapped by huge debts. , And all it did was push up the stock market and the real estate market. The money did not enter the economy. This is the sad part,” he said.
Kiyosaki’s forthcoming book “The Declaration of Capitalism” touched on the socio-economic development of the United States. He wrote that the government is implementing more totalitarian control measures on the people.
In particular, the digital currency of the U.S. central bank will be “fascism,” he said.
“What I fear most is the federal digital currency. It will completely control the economy and our lives. They will monitor our every move and the way we spend money. Our freedom will no longer exist.”