- Robert Kiyosaki, author of Rich Dad Poor Dad, recently warned that the biggest economic crash in history could happen soon based on a sharp 2% decline in bank credit.
- Kiyosaki has made predictions about impending economic collapses before that have not come true. His advice is to withdraw cash and invest in assets like real estate, gold, and Bitcoin.
- While Kiyosaki’s collapse predictions have been inaccurate in the past, the contraction in bank credit could signal upcoming economic turmoil. He continues advising investment in hard assets over fiat currencies.
Who is Robert Kiyosaki?
Robert Kiyosaki is the author of the bestselling personal finance book Rich Dad Poor Dad. The book focuses on the importance of building wealth through investments rather than saving money. Kiyosaki is known for making predictions about economic collapse.
Kiyosaki’s Latest Warning
On Sunday, December 10, 2023, Kiyosaki tweeted a warning to his followers. He said that bank credit has declined sharply, similar to what happened in 2008 before the financial crisis. He warned “this may be the start of the biggest crash in history” and advised people to withdraw cash from banks.
Bank Credit Trends
Kiyosaki pointed out that bank credit recently dropped 2% from its highs this year. This type of notable contraction has only happened two other times in the past 50 years – during the dot com bubble in 2001 and the global financial crisis in 2009.
Bank credit refers to the amount of money banks lend out. It is usually consistently increasing over time. The recent decline in bank credit could signal an economic slowdown.
Kiyosaki’s Track Record
While Kiyosaki has warned of impending economic collapses before, the predicted crashes have not occurred.
In August 2022, he said the U.S. dollar would soon die and that Bitcoin would reach $120,000 in 2024. Neither of these predictions have come to pass so far.
Despite his warnings not always being accurate, Kiyosaki maintains his message to invest in assets like real estate, gold, silver, and Bitcoin as a hedge against dollar inflation. This message aligns with the central tenets of Rich Dad Poor Dad.
Kiyosaki’s latest warning of economic collapse comes during a period of economic uncertainty. While his collapse predictions have been wrong in the past, the sharp decline in bank credit could signal upcoming turmoil. Kiyosaki advises people withdraw cash and invest in hard assets, continuing his long-held narrative of doubting fiat currencies.