For renowned personal finance expert Robert Kiyosaki, several unprecedented economic factors will precipitate the world into a “gigantic” market crash later this month.
The biggest Collapse in the History of the World
The bestselling author of “Rich Dad Poor Dad” says: “This is going to be the biggest collapse in the history of the world. We’ve never run up so much debt… the debt-to-GDP ratio is out of sight,” according to the October 2 Independent.
Apparently, the crisis will occur regardless of what maneuvering U.S. Treasury Secretary Janet Yellen or Federal Reserve Chairman Jerome Powell may do.
Moreover, Kiyosaki observes that it is the operations of these important institutions that are driving the imbalance.
For in his view both the Treasury Department and the Federal Reserve were artificially inflating the stock market, with decisions disconnected from the reality of the current U.S. economy.
Specifically, they have expanded the volume of money while the velocity of money is plummeting because no one is spending and their money is staying in savings.
“Then they inject all this money and prices go up. So it’s transient inflation, but we’re overwhelmed with this huge debt, and all they’ve done is boost the stock market and the housing market.”
“The money hasn’t flowed into the economy, that’s the sad part. So the rich are getting richer, but the poor and the middle class are getting poorer. It’s tragic what’s happening today.”
In this economic scenario Kiyosaki stated, “You can’t keep printing fake money … that’s not good,” considering that you can only wait for the collapse.
He also warned about the impact that the bankruptcy of Evergrande could have on the country.
Evergrande, which is the second largest developer dependent on the Chinese communist regime, is on the verge of bankruptcy. Its debt of more than $300 billion makes it the most indebted company in the world.
It is one of the largest international leaders in the real estate industry. Its offices employ more than 200,000 people directly, and it also generates at least 3.8 million indirect jobs.
Its eventual collapse would have serious repercussions for the Chinese economy and also for the rest of the world. Specialists fear that the indebtedness of the real estate sector will also affect the banking and financial sectors.
Finally, Kiyosaki believes that economic crises can also offer opportunities for enrichment.
“But the good news is that a crash is a good time to get rich, so that’s why I’m optimistic and I’m very bullish on gold, silver and Bitcoin, not stocks.”
On the other hand, the drastic economic changes recorded because of the pandemic have substantially benefited the very wealthy, a fact that is highlighted by writer Jon Miltimore.
“Look at where the new wealth went during the pandemic. The richest 20% hoarded nearly $10 trillion of the $13.5 trillion of new wealth created in 2020,” he wrote in one of his tweets.
“Just remember: this happened during one of the largest expansions of government in history. The powerful take care of the powerful.”