After France and China signed several economic agreements involving sectors like transport, energy, culture, agriculture, and science, Robert Kiyosaki described the situation as the United States being thrown out of the global financial ‘playground’ where it used to be the main ‘bully.’
Indeed, the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ believes that other countries are no longer tolerating the US, which used to be the ‘big bully,’ as he explained in the episode of The Rich Dad Radio Show podcast streamed on April 19.
“The US has been the big bully in the play yard. Suddenly, all the other kids are saying, ‘Well, you’re not going to be the bully anymore. We’re going to gang up on you.’ That’s what the BRICS said, ‘Hey, we’re going to take you down, bully.’”
According to Kiyosaki, the most recent proof of this is France cooperating with China. As he said, “That’s one of our biggest trading partners saying, ‘[expletive] you US, we’re going to deal with China in Chinese currency, not the US dollar.’ The average American has no idea what that means.”
As the main consequence of this, the author warned of the possibility of hyperinflation, dictatorship, and mass murder, which he believes would happen because the US dollar, now no longer the global reserve currency, is going to flood back America.
In Kiyosaki’s view, the seeds for this were sown a long time ago. In 1944, the US signed the Bretton Woods agreement, in which the world agreed to trade in USD. But now, this “is falling apart because Triffin’s Dilemma (…) meant the US had to supply dollars to every central bank throughout the world, so we had to print probably quadrillion of dollars.”
“The BRICS nations [will] gang up against the bully, they [will] say, ‘Take your dollars back,’ and when those dollars come roaring back into America, we have a thing called hyperinflation, and every time there’s hyperinflation – guess what happens – dictators arise, and when dictators arise, the murder starts.”
Moreover, Kiyosaki recalled that US President Nixon took the USD off the gold standard in 1971, which is when it “became fake money, and that’s when I started buying gold and silver.” According to him, Nixon’s actions violated Gresham’s Law, which says that “when bad money enters a system, good money goes into hiding.”
Notably, Kiyosaki has earlier warned about the possible role of the USD in the financial collapse that he believes is threatening America, which “has been violating all of these laws of money for all these years,” and that the world has now had enough of it.
To circumvent the potential consequences of the USD becoming useless, he has long argued for investing in alternative assets, such as gold, silver, and Bitcoin (BTC), which he believes is the best way to protect against inflation and safeguard one’s wealth, as Finbold reported.
Watch the full video below: