Robert Kiyosaki, author of the best-selling book “Rich Dad Poor Dad,” said the entire market, including bitcoin, gold, and stocks, will face a severe crash in October.
Speaking with Kitco News editor-in-chief Michelle Makori, Kiyosaki explained the economic factors contributing to the impending crash and highlighted the severity of the upcoming market downturn.
“This is going to be the biggest crash in the history of the world. We’ve never had so much debt. Debt is the biggest problem…the debt-to-GDP ratio is out of sync. So when it goes down, everything goes down with it, that I will be buying more gold, silver and bitcoin when I do,” Kiyosaki said. “The S&P 500 is actually the S&P 7 index, which is used by Treasury Secretary Yellen and [Fed Chair] Powell. There is no correlation between the economy and what Yellen and Powell did. ”
He stressed that this market crash will lead to a price rally, noting that it could be a good buying opportunity, but only for certain assets.
“I’m kind of weird, I like crashes. The next crash is going to be very, very good — it’s going to drive down gold, bitcoin, stocks, but the good news is that crashes are a good time to get rich,” he said, adding that he is long-term bullish about non-equity assets. “That’s why I’m optimistic, I’m very bullish on gold, silver and bitcoin, not stocks.”
Kiyosaki’s comments come as the House votes this week on a bill to suspend the U.S. debt ceiling. If Congress fails to reach an agreement on raising the debt ceiling by the Oct. 18 deadline, the government faces an unprecedented risk of defaulting on its existing debt.
The forces artificially propping up the stock market, the expansion of the money supply, also created the debt bubble, Kiyosaki said. Inflation is unlikely to persist, he added.
“The biggest argument is [whether there] Either inflation or deflation. Historically… the relationship between nominal debt and GDP is M2, the amount of money, and the velocity of money. The reason Yellen and Powell are scrambling is because they expand M2, so everyone thinks there will be inflation, but the velocity of money is plummeting. People don’t spend money. So, they poured all the money in and the price went up…so it’s temporary inflation. But the problem is we’re stuck with a huge debt, and all it’s doing is pushing up the stock market and the housing market. Money hasn’t entered the economy yet. That’s the sad part,” he said.
Kiyosaki’s forthcoming book, The Capitalist Manifesto, deals with socioeconomic development in the United States, and writes that the government is taking more totalitarian control over the population.
In particular, the U.S. central bank digital currency would be “fascist,” he said.
“I fear Fed coins the most. It will take complete control of the economy and our lives. They will monitor everything we do and how we spend our money. Our freedom will be gone,” he said.
For more information on how to invest, watch the video above. Follow Michelle Makori on Twitter: @MichelleMakori (https://twitter.com/MichelleMakori).
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kitco Metals The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation for any exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article do not accept responsibility for loss and/or damage resulting from the use of this publication.