Robert Kiyosaki says hot inflation will 'wipe out 50% of the American population' — what he means and how to protect yourself

Robert Kiyosaki says hot inflation will ‘wipe out 50% of the American population’ — what he means and how to protect yourself

Robert Kiyosaki says hot inflation will ‘wipe out 50% of the American population’ — what he means and how to protect yourself

With price levels continuing to soar, the Fed no longer uses the word “transient” to describe inflation.

Consumer prices in the United States jumped 8.5% in March from a year ago, marking the fastest rise since December 1981. That could give the Fed another reason to continue to increase interest rates, which is already casting a giant shadow over the stock market.

It’s a vicious circle criticized by many investment veterans. And Rich Dad, Poor Dad author Robert Kiyosaki is one of the latest pundits to sound the alarm.

“When inflation goes up, we’re going to wipe out 50% of the American population,” he told Stansberry Research earlier this month.

Let’s take a closer look at what Kiyosaki means by this.

Sign up for our MoneyWise newsletter to receive a constant stream of actionable ideas from the best companies on Wall Street.

Bitten consumer

Kiyosaki isn’t exactly happy with the current state of the US economy.

“America stopped producing commodities, we produce bubbles,” he says, adding that we now have bubbles in the housing market, the stock market and the bond market.

The author also criticizes President Joe Biden’s decision to shut down the Keystone XL pipeline, which he says is one of the main reasons energy prices are so high.

It also creates problems for those who want to enjoy their golden years. When the bubbles burst, Kiyosaki says, the stock market will crash. So those who rely on their 401(k) plans “are toast.”

“We have no pension, our pensions are bankrupt.”

It’s time to protect yourself

Given his bleak outlook, it’s no surprise that Kiyosaki is a fan of safe-haven assets like gold and silver. Precious metals can’t be printed out of thin air like fiat money, and they’ve helped investors preserve their purchasing power for centuries.

The price of gold is up about 8% since the start of the year. Russia’s invasion of Ukraine has given investors yet another reason to check out the yellow metal.

While Kiyosaki owns gold – he first bought the yellow metal in 1972 – he prefers silver in the current economic environment.

In a tweet last month, Kiyosaki revealed that he bought 2,500 American Silver Eagle bullion coins and gave his bullish reasons for doing so.

“Gold is already higher. Bitcoin still too high,” the tweet read. “Silver 50% below all time. Silver, an industrial metal as well as the $.

Bubble Tactics

Bubbles tend to burst – eventually. When they do, many people see their wealth take a big hit. But big dips also create opportunities for those willing to buy the dip.

“The good thing about a bubble is that when it bursts, everything goes on sale,” Kiyosaki says.

During the financial crisis of 2008, the author began to “buy real estate at bargain prices”. Based on the amount of real estate that has increased since then, it’s fair to say it was a sudden move.

Sign up for our MoneyWise newsletter to receive a constant stream of actionable ideas from the best companies on Wall Street.

More from MoneyWise

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Leave a Comment

Your email address will not be published.