Famed writer and economist Robert Kiyosaki has warned that the actions of governments – such as spending 16% of global GDP on the Covid pandemic and massive money printing – could lead to a crash so big that even the global reserve currency, the US dollar, becomes “worthless.”
In the latest episode of Live from the Vault, the businessman explained that when the “house of cards” starts coming down during unprecedented economic times, there’s a need to reconsider how people store their wealth. The big problem with fiat money is that it’s largely based on public faith in the issuer, he said.
According to Kiyosaki, there are a number of ways to store wealth that are independent of any central bank and can help to mitigate the impact of any pending economic crash. Those are primarily buying gold and silver, he said, adding that investing in real estate and crypto are also the right things to do.
“They (governments) now have to keep printing, or we crash,” said the author of ‘Rich Dad Poor Dad’, stressing: “That’s why I’ve been bullish on gold for all these years.”
Talking about the lack of trust in the paper markets, Kiyosaki advised that investors move away from any gold and silver derivatives, be they futures or ETFs, because those are open to manipulation. It’s important to buy physical gold – the favorite hedge against market turbulence – as well as silver in pounds and ounces, he said.