the answer is ;, cash will not be around anymore, what will take the place is chips inplant into human beins and evrything will be run by the pope- rome and the government, so yu wont able to buy anything without yu join i the new world order. the whole finicial wold is melting down , who is doing it , GOD ALMIGHTY, WITHOUT YU BELIEVE IT OR NOT OR HIM, IT DOES NOT MATTER , AND FOR THAT REASON THERE IS NOTHING ALL THE GREAT MINDS CAN DO ABOUT IT. IT IS A BOTTOM LESS PIT. THE DAYS OF THE US LIFE IS OVER. WHY?, BECAUSE OF MORAL DECAY WHICH LEADS TO EVRY THING THATS BAD.
Like many who have posted their opinions about this I also think that cash will become trash. I believe that if there was a depression that that it will turn out like the one in Germany. My parents are from a country called Guyana and the same thing happened there. My dad use to tell me stories about buying a bottle of soda. He said that the bottle cost more than the soda. It looks like the same thing is happening here in America. Today you can recycle you cans and bottle for 5 cents. I think this price of recylced bottles and cans can be used somewhat as an indicator as to how the ressision or depression will head.
From my own experience, hope not but if we have a depression it will be like the one in Germany. As student the more i save the more i loose, it seams like everything else is getting expensive day by day as my raise on is getting higher yearly. The gas is going higher but no my pay check.
Where I work, we are greatly affected by the banking crisis. Recenlty a co-worker shared a radio show that talks specificlly how the some of the mortgages worked and what has lead us to this mess we are in. I thought this would be great to listen to and ties in nicely to the AIG Info as well as the article from Rolling Stone Mag. I will past the link here, but all who reads this, please note that you will have to pay to download it...the cost...is .95 cents.
Just read Louise's message, and I, too, would like specifics as to just how one aquires silver or gold, or copper, as she also mentions. I, too, have noticed that there is much advice that one "should," but no clear information on just how one goes about doing that.
Supply for money is low - people are hoarding cash and cutting back on expenditures, credit is tight, people can't get the financing/credit they used to
Demand for money is high - companies are creating more and more incentives for people to buy, 50% off sales, financing incentives, etc. - and sales are still low...
Supply meets demand - people want money a lot more than people are willing to supply it - that means the value of money is going up (i.e. deflation).
That drives up the value of money regardless of how much funny money the Fed pumps out. A lot of wealth was destroyed during the financial crisis last year, and the Fed has to dump a ton of money into the economy to prevent the defationary pressures we're seeing in the economy today.
This whole talk of hyper-inflation is overblown. We're almost near deflation now. For the last 4-5 months, consumer prices have been flat. That's because people aren't spending money. It's all about supply and demand. The demand for dollars is high right now, but the supply is low. People are hoarding cash, waiting for things to get better before spending or investing. The same thing happened during the Great Depression. People stopped buying things and hoarded cash waiting for things to get better. They also held onto what they had in case they lost their jobs (security).
I get a little suspicious when people start pushing gold. Rich people push stocks or commodities when they want to drive the price way up, then they cash out when the price skyrockets. Of course, the rich own higher quantities of the stock or commodity so when the rich sell out, it drives the underlying value of the stock or commodity way down. Rich people do this all the time to drive up the price of penny stocks. They'll talk up the company as the next big start-up, wait for the greedy and uneducated to buy the stock, then sell out their shares when the price spikes. Rich people are doing this with gold now, and I say watch out.
People talk about the tech bubble, the housing bubble, the financial bubble. The next big bubble to watch out for is the commodities bubble. Gold is going to crash, and crash big. I say watch out and stay in cash for now.
happy birthday mr robert, thank you for all you and the rich dad team have been doing. i hope everyone out there will eventually set themself free from the modern slavery.
Since we lost the gold standard, our money is worthless paper. Printing more money - and creating debt through credit - is only hastening the ultimate devaluing of our dollar. Only real source of financial security is now in gold, silver, oil, food and possibly still real estate. Food - or ability to grow food - will be king, along with oil and ability to use transportation. If we are headed into a one-world government and currency, gold and silver should still have good value.
I beleive that unless we limit the printing of money cash will be trash. We have nothing to give cash value since the 70's. I tell people this and they are oblivious to the truth that will hit them in the head and they will accuse anyone but themselves for their ingorance!
What's your take on the next depression? Will cash be kind or wi
There will always be another depression.
Businesses are in cycles so are countries, they come and goes.
USA no exception. Collapse of USA is inevitable because of politics, internal corruption, external forces, etc, etc. It's how you plan for yourself before these events occur that's important.
Money is medium of exchange, a tool, if you will. It is a double
edged sword. Depend on how you use it, it can save lives or
destroy lives. Credit is same thing, except it is more leveraged. Before using these tools understand where your positions are so you might be successful in your agenda/motive.
With the influx of various stimulus packs pumping so much money into the system, i expect if a depression comes up it will be the type where cash will be trash.
being reading through latest comments on this chapter. someone mentions Harry S dent's book but this book though in general in agreement with Robert & others actually confuses itself. too many cycles & actually in one part appears to contradict itself.
Another thing I find with the book is Harry does predictions from an American point of view. he bases many of his overseas predictions on UN material, but I know from my own country alone that information is grossly out of line with what is actually happening.
Again it comes back to understanding how other cultures think when predicting something. OK it is not economic but I will give an example. before I do I will link the recent G20. France & Germany in particular were anti the US program probably because they think back to German experience as opposed to US depression.
A US solution does not suit what others are comfortable with.
the further example ties to Barrack Obama's wish to make the world Nuclear free. He can't force another country to do what he or US wants.
Here in NZ we are Nuclear free & have being since 1985. What most people don't realize was that it was not that well supported until the US said we would be punished if we did not do it. suddenly it was the most popular thing around. Rule one about Kiwis. never tell them what to do. they will do the opposite.
Back to Harry dent he is predicting that NZ will get older, but in fact prediction not given to UN is by 2025 is our population will be 40% Maori. Now Maori, we don't at present live as long as the remainder of the community. majority of Maori population is generally under 15 at any one time or has being for about the last 100 years.
NZ population is currently being made younger by return of those on their OE(overseas experience.- 94% of NZ has a passport -highest percentage in the world, Australia has 93%, the lowest rate is the US at 17%) early,as economic fallout continues. Harry has not taken into account our cultural differences.
In the meantime comments from George Soros about US banks being insolvent back Roberts prediction & comments so far in book.
with silver & gold having bought some myself I see what appears to be the banks etc using bail out money to keep prices down for as long as possible.
As I said before, I am an extreme novice on this subject, but after reading part of this chapter with a mild awareness of the times, I think that cash will be trash. Because as you said before, president Obama is trying to fight deflation with inflation; however, if inflation continues to increase at the rate that it is, it may become classified as hyperinflation and eventually result in a depression. Time to by some gold eh?
The country is awash in excess money - once the flush-out of 'toxic assets' is well underway, there will be a rush for financing of cars and real estate and there will be little the Fed can do about it via interest rate hikes - or the economy would really crash fast. So they'll try to keep the burner at 4% inflation rate or so and hope that the economy will catch up to the sea of cash around. Once the public senses that cash is losing its value quickly more will be spent...I fully expect that within 20 years or less the two major "currencies" will be ammo until civil unrest is under control and pre-64 90% silver coins.
In my humble opinion it is interesting to note that it took 120 years for the price of gold to double(per ounce). In 1971 an ounce of gold could be purchased at about $40. 38 years later it is just under $1000. Prices of goods and services have been going up at an alarming rate in recent past. If you go back 10 years, most items were purchased for about half the price of what they can be purchased for today. We are not only headed for a German Style Depression but in my opinion it is already here. Also the Federal Reserve is a much bigger problem than many realize. Its not just our economy that is in trouble, capitalism itself is. The Fed is an independent function of our economy and is not held to any of the principles of our constitution. In other words, they can do whatever they feel like, regardless of how it affects the people. Thomas Jefferson had some vision. We created a near perfect republic, but will they keep it? If the people come to realize the president is just a pawn, they may search for the king...and we can take back our freedoms. One more thought. There are 65 million homeowners in the United States. Most pay a minimum of $23.00 per day under a traditional amortization schedule. That is approximately 1.495 trillion dollars per day going to banks, all under one roof stemming back to the fed. That is over 40 trillion per month collected in interest! Yet somehow these guys need bailout money? My question is what are they doing with it? They haven't reduced interest rates for loyal customers. They don't offer savings accounts that match inflation.
I agree with RRowatowski. Right now cash is still king, because the rest of the world's currencies are still pegged to the US dollar. As the Fed continues to print money, the dollar will become less and less attractive as a reserve currency. Then the other countries will seek to unpeg their currencies from the dollar and peg them to something more stable like gold (perhaps). That's when we will experience hyperinflation.
Initially cash will be king as we experience deflationary pressure. Although the stock market has been rallying for the last month, the long-term downward trend hasn't been broken. Housing prices are still declining in much of the US. Cash is still king for now...
...but that won't last long. I think we'll see prices begin to inflate by the end of this year or early next year. I'm already starting to transition some of my cash into assets.
In the near term, continued unemployment can lead us to a deflationary depression by the end of 2009/early 2010. Cash will be king.
However, as soon as the economy begins to rebound and unemployment stabilizes, severe inflation can occur if the Fed can't unwind its balance sheet and carefully raise up interest rates. This would follow the scenario above. Then we may have a 1970s style stagflation scenario.
Its clear that the money printing will lead to inflation, however, before we reach the stage of a Weimar Republic style depression in the USA I believe one of two things could happen:
1) The implosion of the US dollar is delayed by other currencies devaluing at a similar or even faster rate. When we reach the tipping point where joe six-pack is aware that we are entering into a global hyperinflationary depression the US, backed by other countries, will confiscate or control gold/silver and a new currency will be created. Fundamentally, bankers backed by governments will fight the loss of control over the money supply that would occur if we moved back to a gold standard.
2) Central bank gold sales, similar to IMF plans to sell 403 tonnes of gold, will be used to prop up fiat currencies. We may have one more brief wave of 'recovery' before the tidal wave hits the world economy. This will be when we truly enter into a deep inflationary depression.
Either way it is just a matter of time although I believe we have some time to get prepared for the coming storm. Layered on top of this is the burden of the retiring baby boomers which has not yet hit. This will need to be funded through money printing (wealth confiscation). As bad as a depression may seem it is necessary to get the world back on a path of sustainable growth. Unfortunately there will be many casualties before this is over.
Lots is being said about buying gold, but how? Do I buy little gold coins or larger ones? Which one will be useful to exchange when needed? Is it better to buy gold and silver on the stock market? Is using the ETF for gold is the way to go? Buy gold stock and hold. Buy silver stocks and hold. What about copper, is copper is a good idea? Or having the material gold to hide in a safe at the bank? or under one's bed? Is there an other way to acquire gold that make sense with the financial situation that we are in?
With Obama creating more debt in a few months than all former presidents combined means that the only way to pay for it will be to crank up the printing presses. People are preparing for the deflation style debt as you suggest which also guarantees the printing of fiat money to pay for our government's rewarding of incompetence. At any rate we are much less prepared for this depression than those people of the last one. Unlike what is likely to happen today, many never missed a meal in '29 because of the strong agricultural economy; they had no money but they could survive.
Since the entire world is on fiat money, hyperinflation will occur as this fiat money gets pumped into our system. This will cause the price of consumer goods (food, oil, housing, anything we use on a daily basis, etc.) to rise either gradually or sharply over time, in the near future. Thus, you will need more cash to buy the same products.
Therefore, people who are saving their money, are actually loosing their money...it's becoming less and less valuable over time. This is especially bad if their pay raise at work does not increase...or at least not increase as much as the inflation will.
People who are actively pursuing cash producing investments will be king since they will have the excess cash to pay for these inflated consumer goods and products. Depending on the number or quality of investments they have, they will have even more excess cash to play around with.
Bye-bye middle class and savers. They will be poor...as there will be only two classes in the future....rich and poor.
I will like to tow the line of prophecy for this end time as is well depicted in the story of Joseph in the Holy Bible (Genesis 47). Here, it was seen that there was famine in the land (somewhat like inflation) and the people were happy-go-lucky fellas who were satisfied with temporary nourichment. But, a time came that money failed, which they also attested to, and then they sold all: goods, stock, land,and finally themselves (depression?).
This is repeating itself, big time and people are loosing their money beyond their widest imagination. What can they fall back on now?
All i see is a return back to tangibility (land) for sustainability in this hour.
Why?
Since 1971,after President Nixon took the US off the gold standard,the whole world is on fiat currency,and currency that is backed by debt.It's just as good as monopoly money.And mind you the world is not a board game.
the important point for me is The Fed chairman,Mr Ben will avoid deflation at all cause and will print as much money as it takes to avoid deflation.So there it is,it's going to be inflationary depression,German style...
Cash is trash. Commodities are good, and the original Lincoln greenback system would be a blessing. Open trade would be nice too. You know: I'll give you water from my well to grow your tomatoes, if you'll give me some of the tomatoes when they ripen. Who needs money?
My take on the ongoing depression is ‘economorphism’. What was a deflation, has changed to inflation – obviously! If America is still suffering from the staggering blows FDR and his cronies have dealt use with the “Raw Deal”, then the ‘great’ depression of 1930’s was in a deflation of the USD, as stated; however, based on the astute observations as contended in the book thus far, we are historically beginning the upwards climb (the cusp) in the exponential growth dollar-to-gold inflation (see the Reichsmark-to-dollar value in 1922-1924.) This exponential growth is asymptotic to a vertical line, which un-like positive CF deals put together with zero money down have an infinite ROI, the rise over run factor is infinity divided by zero; basically undefined or what may be more colloquially known as an economic meltdown, a collapse if you will.
Being a loyal advocate of truth in history, I am a little concerned that short facts are given to help continue the discussion in the last two paragraphs of the last summary section 7 of Fixes or Farces, Chapter 4. Since the title to the book contains the connotation of ‘conspiracy’, why dance around the subject at hand in the part of the book? Why not call the programs a furthering control of the lambs by the wolves? I’m afraid the majority may miss the connection between what the government hands the people as help, is furthering the control of the people to rely and depend on the government for help – as is true with the work programs.
As far as the greatest fear of government officials is political unrest may be true for each constituent in our government (because they are looking for their next election), not all revolutions are caused by not being fed – which I may be falsely attributing to this section of the book.
I applaud you, Mr. Kiyosaki, for bringing one of the most important issues to the masses – “Financial Education” and the reasons we, the general American population as well as the entire world, aren’t getting it because of the conspiracy of the rich, id est – the super rich.
I am from a "different" economic clime from yours, being a Nigerian. But I have read 4 of Robert's books and a little bit of economic history here and there. These got me on to this site, especially when I noticed what was going on in world economy. "This is bound to change some of what Robert has been writing and practising," I told myself. I was not disappointed when I saw "The Conspiracy of the Rich". You see, when this economic meltdown started, we were told here that it would not affect us. We relaxed and what do we have now?: Cash-squeeze, a bearish stock market, job losses, real estate downturn and general poverty! Not that we were any better off before these crises...However, I notice that our own naira has been losing out on the dollar since January by as much as 26%! Meaning that, as long as the US$ is the world's currency, we catch cold whenever it sneezes. To us here in Africa, if the world becomes awash with dollars, our own naira, shillings, or whatever will only "firm" dubiously! What do those of us just planning to move from E to B to I on the Cashflow Quadrant? We are apprehensive!
I think we should go back to Gold Standard, it has been proven to be a stable monetary system as it has real value. And gold can be accepted in all regions and all countries.
"IN SOCIALISM".
I agree with robert that bailout is bad, because it only helps the rich people by using taxpayers money, but at some point we need socialism in our life. Not all people would be rich, what I mean is that it's better to bailout poor people and teach them how to fish than bailout rich people. In any worse condition of rich people, they're still have assets and wealth than any poor people. "If we want to be rich than start giving"
"In Pharoh story"
As I remembered it was Joseph's story (or Yusuf in arabic).
Cash is trash. There has been no hint nor mention of the U.S. going back to a Gold and/or Silver Standard.
Additionally, the Rich Dad Team has been pointing out that government social programs will be in the $Trillions$ and look @ what's happened:
The amount of currency (not money...careful now ;-) they are discussing in the news has gone from $Billions$ to $Trillions$...and more and more instuitions are running to Uncle Sam for paper money. One after another, they all keep coming.
How do you know if you're in a hurricane? Well, usually you're getting wet and your umbrella is turning inside out! This is usually true except when you're in the eye of the storm, and this is where I think we are now. One of the greatest weapons we have to fight a depression is our knowledge. Knowledge of history and knowledge of investing.
I believe the current situation will not get worse because of our knowledge and actions that are being taken to prevent a depression. Remember, we wouldn't be in this situation if it wasn't for the greed and corruption that has finally surfaced in the past year. So, as long as another AIG, or Fannie Mae or Madoff scandal does not drop on our laps then we will be fine. The market did not crash. The market 'Successfully' and 'Remarkably' withstood the onslaught of attack after attack of greed and corruption.
We can stay in the eye of this storm until the storm dies down--we just have to keep moving with it and we have to not feed it what it needs to stay alive, which is greed and corruption.
Proofreading Notes:
Double “that that” in last sentence of the third full paragraph on page 1.
On page 1, you refer to “what these guys are smoking,” but are you referring to the toxic debt managers of Citigroup or other people that are saying “The worst is over?” This is somewhat confusing.
On page 3, why bother mentioning that you are “not pointing the finger at President Obama?” It looks and sounds like you’re pandering to the liberal democrats by trying not to step on their sensitive toes and by appeasing to their sensitivities. Socialism, as you stated, has been in this country for decades under the guise of liberalism—it has not been invented by Obama, it just continues to be enhanced by his new policies. And it’s also interesting that you later quoted President Reagan to define ‘depression’ and ‘recession.’
I think that Fiat Currency will be trash. Good for papering the walls.
The mentality that many people have is "entitlement" to the social programs that our governments have created.
I remember asking as a kid what happened in the "great depression". My parents were born just as it began. Their memories are that they had to live very carefully and together as a family. My Mom has good memories of her extended family working and living together. My Dad's Mom ran a Bed and Breakfast and his Dad was gone for long periods of time looking for work. They told me that the governments of the time created programs such as UnEmployment Insurance, and Social Wellfare so that people who fell on hard times would not be left homeless. That the reason the great depression occurred was because a few people where greedy and criminal. That the Government now had laws to prevent it from happening again. I believed this until I worked for unethical people and corporations. I believed this until I read your books. Then I became aware that the government and our education system is designed to keep people ignorant and passive with an entitlement mentality that the government and or corporations will take care of the people.
I know that I have been financially ignorant and made many poor decisions. I know the financial knowledge is currency of today's world. I know that you are passionate to teach the truth. I am passionate to learn.
I am now building a business based on education and making choices that leverage my skills.
Thank you for helping educate and wake people up to the truth.
The greatest wealth transfer in history is happening now. I truly hope that it is transferring to ethical, financially educated, and responsible capitalists.
World Monetary System is based on debt. Money are created from debt. When a loan is issued, more money are created. We need money to develop the economy, life standards, pay for innovations etc. Therefore people borrow money and thus infinetely create more new money. There are 2 films, which explain how this happens - "Money Masters" and "Money as debt". These films also strongly refer to Robert's book main idea - Conspiracy of The Rich. A number of really rich people cotrol world's money supply. Some will argue that Federal Reserve and other central banks control money supply, but Fed, just like the other central banks, is privately owned, which means that shareholders (super rich individuals, who act for their own benefits) can manipulate recessions and economic growth, regulate inflationary/deflationary processes and thus decide, whether cash is king or trash, simply by increasing or decreasing world's money supply.
In my opinion, we will see a German style inflationary depression. How can we not think this with a government that is printing as much currency as it is? (And, for that matter, as much as it WILL be printing in the future)
Ben Bernanke, the chairman of the Federal Reserve Bank, has written extensively, and publicly spoken that one of his worst fears is deflation! He is going to do anything possible to avoid that. Deflation will make our government’s gargantuan debt cost even more. As it stands, we are going to run a 1.5 trillion dollar deficit in 2009! Doesn’t this register with people? The previous record was 429 billion in 2008!
Where do you think this is going? Why aren't more people waking up to this obvious problem! Could a person run a household like this? Could a business run and be solvent like this? I think not.
(Ha-ha, the same people in government that are running these deficits are the same that are telling businesses how to run... it blows my mind!)
A few years ago I thougt about the time of unions.
Eu
North america
South america
AU
Aisia is more tricky - by oil and gas Russia, China, India, Iran and some small nations between them are in alliance...however I see that one as very weak...especially since chinas main water supply are depleted and their reseroirs are also quickly depleting.
So a new option emerges.
SAU (sout america) doesnt like US
AU probably dislikes most of the world (now cina and india are there as well as the west)
Far asia likes US because of its wealth, but if Us are wealthy no more?
Muslim community? and the restoration of the caliphats?!?!?
This lay up the time of the unions and their currencies, this could actually be a good thing if there are 5-6 large factions in the world and if one currency are getting out of hand - companies can switch curreny for payment, or to recieve payment.
We are never tought history.
We dont learn the history of money - a lot of our history are faked...for exemple Eurabia, Islam has been written as something nice and creative when it is not...then letting 54 Million muslims into Europa.
So - history are a tool for the rich to make us not see or avoid issues as real history, and money handling, and to donfuse us and to keep the lid on...in school I had no clue about things as simply as Robert wrote in Rich dad poor dad - my parents didnt knew either.
My parents only complains about bonuses and high salaries in the elite - they are partially right but they dont know why. They are indoctrinated by socialism - a socialism emptying their pockets whilst they believe captitalism is the bad guy - what capitalism? Chinese? USAs?
I dont think any currency but a new one will be king...what is left of other currencies? Japanese? Chinese? (both very undervalued) Swedish (8 biggest) US?
Sems they will hit the fan.
So I say a new currency or trash.
And with a new currency the rich can fool us even more taking a high price for the new money which make it a inflation depression.
Recently, Russia has become the first major country to call for a partial restoration of the Gold Standard along with China. If they do this, i think they would back a whole new currency with gold. Either way, when the world currency is formed, rest assured (please prove me wrong) the rich will get richer and poor will be poorer as the wealthy few once again control all the money.
Can someone elaborate on the effects of this move?
I am in two minds about this. On the one hand we are seeing massive devaluations in assets around the world which is obviously destroying wealth. If wealth is reducing so is the money supply as it is a measure of that wealth. Money is therfore able to purchase more assets because they are cheaper than what they were prior to the depression. Therefore cash would be king.
On the other hand it is the policy response by our various governments in trying to stabilise economies by freeing up money supply that could result in serious inflation. It all depends on how far they go. At the present time asset deflation has far exceeded increase in new money supply. I really have my doubts we are going to see a surplus of money supply in any of the major economies any time soon unless it is just handed out to all and sundry.
By the way I am from Australia so my understanding may be a liitle different.
Fiat Money to Electronic-Cash base--Biometric System
I agree that will end up with ONE WORLD CURRENCY, BUT A DIGITAL BASE i.e electronic cash. The United States is a socialist society has been since the 1920's abd these bailout are purely ridiculous.
Digital ID's and Retinal Scanning will be a reality in 10-15 years. Serious Medical testing, Biotechnology will be a reality
We must teach our children, our dearest fanilies members and our friends financial literacy, as well as investing like the rich.
Thank you for all you do Robert K. Your books and games have paved the way for a bright future for me and my family. And thank you for the online interactive book...
Glenn, I agree with you. We are heading toward the 1 world currency. No longer can a person depend on any government or employer. God is the only source and always has been. That is why we have free-will those who hear let them hear.
Those who read this and get offended and go on about their religous ideologies, sorry, I have offended you. I am thinking maybe you should read this and truly understand. Let go of your pride man, it is the one thing that could be holding you back.
All this does not matter, yes it is intersting to figure things out, but does it really matter, since YOU do not know if YOU will live to see tommorrow? That is why I say, repent, humble yourself or God will. Read Romans 10:9. Don't you know that there is a reason for everthing? The only reason why God allows (not tempts) things to happen like this is to draw you close to him. Don't trip man and focus too much on this stuff, put God first and he will give you the desires of your heart. Psalm 37:4 All these things happening are meaningless.
My Brethern read Ecclesiastes 5. Go to biblegateway.com. You too soon, will find out that you need to stand in awe of God first, becuase God is what truly counts. God does not want to hurt you, he wants and does love you, no matter what you have been through.
Robert,
The mega rich money families have for years, methodically planned the destruction of America's way of life. They snatched control of the US currency with the establishment of the Federal Reserve. As long as they maintain control of our currencey and certain elected politicians, they could care less who is President or which Polictical Party is in power. However, their biggest gains toward power over Americans have been made with the aid of Liberal Democrats. Crashing the stock market in 1929 stripped Americans of their wealth, enabling the families to gain control of major US corporations for ten cents on the dollar. Their control of this country's major media outlets enabled them to slowly brainwash nearly everyone in order to attain their goals. It is their desire to destroy our currency stripping away any opportunity for the middle class American to create any degree of wealth. The elimination of close family units breaks the back of organized religions. To socialize and control all service organizations are part of their plans. Massive inflation must become the result of their printing trillions of worthless US dollars. This is intended to result in the circulation of a one-world currencey to make it much easier for them to manage their control over every country where they are well established. America's future is very bleak unless our middle class become effective activists in order to wrest away their control before our freedoms are completely taken away. Your "Conspiracy of the Rich" will become a major wake up call to stir the worlds slumberers into some form of action. Thank you for your contribution.
i know you want to keep it simple; but you have over simplified.
the US recession was caused by a massive haemorage of money, M1, to cover margin calls, M4, after the stock crash. So much real money was erased from the sytem reconciling the M4 losses.
the German recession was caused by the Government, printing money , M1, to cover reparations payments required by the 1st World war treaty. The devaluation of the currency, inflation, ran amok; setting up the stage for the 2nd world war.
In the late 1970's Argentina flirted with a hyper-inflation driven recession; again as the Argentine government tried to repay loans to the IMF (US). I believe a a considered analysis of the Argentine situation to be more relevant to the situation.
The Treasury is generating a massive m4 supply situation, what happens depends on how the m4 flows are reconciled, or repaid. If the M4 money is used to replace M4 losses in subprime mortgages, then there needs be no dollar fall-out.
The real crisis here is the existing total M4, debt-instruments, which have to be paid at some point in time. If either China declines Treasury notes,a debt instrument, or Saud demands payment in a currency other than US$ for petroleum; then all hell .
The Government must then turn to the source of all wealth, the taxpayer, and extract additional taxes to pay off the debt. A situation which toppled the Argentine Government.
All depressions are not created equal and I think the coming one will be of great proportions. It will be so much so, that "cash will be trash." Our economy is like the world wide web, vast and invisible. The scale and the lack of transperancy contribute to all our economical issues we are having.
My grandmother, along with my great grandparents used to stash Gold Napoleon coins ever since I was a little boy, because they never believed in the money given to them by the government. She always thought that the government was out to screw her over and never trusted money.
I once visited her at the village with my brother and we found bags upon bags of Greek paper currency from the WWII. There must've been at least 10 million drachmas in there. When we brought the bags up, she started laughing saying they are all worthless. She said that she had to buy gold as fast as possible because that was the only thing that kept value, and in turn would use the gold coins to buy land around the village because nobody would ever accept the currency.
It's weird to me that all these memories are coming back, and I'm reading all about them in this book, Mr. Kiyosaki! :)
Basing on what we observed todays finacial crises. there is plenty of money swirling around the financial system today. not only mentioning the " bailout " word but also the stimulus plans of the U.S. government. President Obama's word during his first days in office is that; it takes money to solved this money problem. so, it is a clear indication that the U.S. government have to pump enough money in order to revive this ailing economy. and it is also a clear indication that there is a coming depression caused by inflation or a german type depression.
Since money is an artificial commodity and security, our impending threat seems to be more of the German type--an inflation-based depression. Clearly, though it is moderately controlled at this time, inflation is becoming more of a threat than a specter.
the answer is ;, cash will not be around anymore, what will take the place is chips inplant into human beins and evrything will be run by the pope- rome and the government, so yu wont able to buy anything without yu join i the new world order. the whole finicial wold is melting down , who is doing it , GOD ALMIGHTY, WITHOUT YU BELIEVE IT OR NOT OR HIM, IT DOES NOT MATTER , AND FOR THAT REASON THERE IS NOTHING ALL THE GREAT MINDS CAN DO ABOUT IT. IT IS A BOTTOM LESS PIT. THE DAYS OF THE US LIFE IS OVER. WHY?, BECAUSE OF MORAL DECAY WHICH LEADS TO EVRY THING THATS BAD.
Like many who have posted their opinions about this I also think that cash will become trash. I believe that if there was a depression that that it will turn out like the one in Germany. My parents are from a country called Guyana and the same thing happened there. My dad use to tell me stories about buying a bottle of soda. He said that the bottle cost more than the soda. It looks like the same thing is happening here in America. Today you can recycle you cans and bottle for 5 cents. I think this price of recylced bottles and cans can be used somewhat as an indicator as to how the ressision or depression will head.
From my own experience, hope not but if we have a depression it will be like the one in Germany. As student the more i save the more i loose, it seams like everything else is getting expensive day by day as my raise on is getting higher yearly. The gas is going higher but no my pay check.
Robert,
Where I work, we are greatly affected by the banking crisis. Recenlty a co-worker shared a radio show that talks specificlly how the some of the mortgages worked and what has lead us to this mess we are in. I thought this would be great to listen to and ties in nicely to the AIG Info as well as the article from Rolling Stone Mag. I will past the link here, but all who reads this, please note that you will have to pay to download it...the cost...is .95 cents.
I hope this is ok.?.?
http://www.thislife.org/Radio_Episode.aspx?sched=1242
Just read Louise's message, and I, too, would like specifics as to just how one aquires silver or gold, or copper, as she also mentions. I, too, have noticed that there is much advice that one "should," but no clear information on just how one goes about doing that.
Thanks so much for ALL your work, Robert.
I didn't explain it well in my last post:
Supply for money is low - people are hoarding cash and cutting back on expenditures, credit is tight, people can't get the financing/credit they used to
Demand for money is high - companies are creating more and more incentives for people to buy, 50% off sales, financing incentives, etc. - and sales are still low...
Supply meets demand - people want money a lot more than people are willing to supply it - that means the value of money is going up (i.e. deflation).
That drives up the value of money regardless of how much funny money the Fed pumps out. A lot of wealth was destroyed during the financial crisis last year, and the Fed has to dump a ton of money into the economy to prevent the defationary pressures we're seeing in the economy today.
This whole talk of hyper-inflation is overblown. We're almost near deflation now. For the last 4-5 months, consumer prices have been flat. That's because people aren't spending money. It's all about supply and demand. The demand for dollars is high right now, but the supply is low. People are hoarding cash, waiting for things to get better before spending or investing. The same thing happened during the Great Depression. People stopped buying things and hoarded cash waiting for things to get better. They also held onto what they had in case they lost their jobs (security).
I get a little suspicious when people start pushing gold. Rich people push stocks or commodities when they want to drive the price way up, then they cash out when the price skyrockets. Of course, the rich own higher quantities of the stock or commodity so when the rich sell out, it drives the underlying value of the stock or commodity way down. Rich people do this all the time to drive up the price of penny stocks. They'll talk up the company as the next big start-up, wait for the greedy and uneducated to buy the stock, then sell out their shares when the price spikes. Rich people are doing this with gold now, and I say watch out.
People talk about the tech bubble, the housing bubble, the financial bubble. The next big bubble to watch out for is the commodities bubble. Gold is going to crash, and crash big. I say watch out and stay in cash for now.
happy birthday mr robert, thank you for all you and the rich dad team have been doing. i hope everyone out there will eventually set themself free from the modern slavery.
Since we lost the gold standard, our money is worthless paper. Printing more money - and creating debt through credit - is only hastening the ultimate devaluing of our dollar. Only real source of financial security is now in gold, silver, oil, food and possibly still real estate. Food - or ability to grow food - will be king, along with oil and ability to use transportation. If we are headed into a one-world government and currency, gold and silver should still have good value.
I beleive that unless we limit the printing of money cash will be trash. We have nothing to give cash value since the 70's. I tell people this and they are oblivious to the truth that will hit them in the head and they will accuse anyone but themselves for their ingorance!
There will always be another depression.
Businesses are in cycles so are countries, they come and goes.
USA no exception. Collapse of USA is inevitable because of politics, internal corruption, external forces, etc, etc. It's how you plan for yourself before these events occur that's important.
Money is medium of exchange, a tool, if you will. It is a double
edged sword. Depend on how you use it, it can save lives or
destroy lives. Credit is same thing, except it is more leveraged. Before using these tools understand where your positions are so you might be successful in your agenda/motive.
With the influx of various stimulus packs pumping so much money into the system, i expect if a depression comes up it will be the type where cash will be trash.
Kia Ora Again.
being reading through latest comments on this chapter. someone mentions Harry S dent's book but this book though in general in agreement with Robert & others actually confuses itself. too many cycles & actually in one part appears to contradict itself.
Another thing I find with the book is Harry does predictions from an American point of view. he bases many of his overseas predictions on UN material, but I know from my own country alone that information is grossly out of line with what is actually happening.
Again it comes back to understanding how other cultures think when predicting something. OK it is not economic but I will give an example. before I do I will link the recent G20. France & Germany in particular were anti the US program probably because they think back to German experience as opposed to US depression.
A US solution does not suit what others are comfortable with.
the further example ties to Barrack Obama's wish to make the world Nuclear free. He can't force another country to do what he or US wants.
Here in NZ we are Nuclear free & have being since 1985. What most people don't realize was that it was not that well supported until the US said we would be punished if we did not do it. suddenly it was the most popular thing around. Rule one about Kiwis. never tell them what to do. they will do the opposite.
Back to Harry dent he is predicting that NZ will get older, but in fact prediction not given to UN is by 2025 is our population will be 40% Maori. Now Maori, we don't at present live as long as the remainder of the community. majority of Maori population is generally under 15 at any one time or has being for about the last 100 years.
NZ population is currently being made younger by return of those on their OE(overseas experience.- 94% of NZ has a passport -highest percentage in the world, Australia has 93%, the lowest rate is the US at 17%) early,as economic fallout continues. Harry has not taken into account our cultural differences.
In the meantime comments from George Soros about US banks being insolvent back Roberts prediction & comments so far in book.
with silver & gold having bought some myself I see what appears to be the banks etc using bail out money to keep prices down for as long as possible.
As I said before, I am an extreme novice on this subject, but after reading part of this chapter with a mild awareness of the times, I think that cash will be trash. Because as you said before, president Obama is trying to fight deflation with inflation; however, if inflation continues to increase at the rate that it is, it may become classified as hyperinflation and eventually result in a depression. Time to by some gold eh?
The country is awash in excess money - once the flush-out of 'toxic assets' is well underway, there will be a rush for financing of cars and real estate and there will be little the Fed can do about it via interest rate hikes - or the economy would really crash fast. So they'll try to keep the burner at 4% inflation rate or so and hope that the economy will catch up to the sea of cash around. Once the public senses that cash is losing its value quickly more will be spent...I fully expect that within 20 years or less the two major "currencies" will be ammo until civil unrest is under control and pre-64 90% silver coins.
In my humble opinion it is interesting to note that it took 120 years for the price of gold to double(per ounce). In 1971 an ounce of gold could be purchased at about $40. 38 years later it is just under $1000. Prices of goods and services have been going up at an alarming rate in recent past. If you go back 10 years, most items were purchased for about half the price of what they can be purchased for today. We are not only headed for a German Style Depression but in my opinion it is already here. Also the Federal Reserve is a much bigger problem than many realize. Its not just our economy that is in trouble, capitalism itself is. The Fed is an independent function of our economy and is not held to any of the principles of our constitution. In other words, they can do whatever they feel like, regardless of how it affects the people. Thomas Jefferson had some vision. We created a near perfect republic, but will they keep it? If the people come to realize the president is just a pawn, they may search for the king...and we can take back our freedoms. One more thought. There are 65 million homeowners in the United States. Most pay a minimum of $23.00 per day under a traditional amortization schedule. That is approximately 1.495 trillion dollars per day going to banks, all under one roof stemming back to the fed. That is over 40 trillion per month collected in interest! Yet somehow these guys need bailout money? My question is what are they doing with it? They haven't reduced interest rates for loyal customers. They don't offer savings accounts that match inflation.
I agree with RRowatowski. Right now cash is still king, because the rest of the world's currencies are still pegged to the US dollar. As the Fed continues to print money, the dollar will become less and less attractive as a reserve currency. Then the other countries will seek to unpeg their currencies from the dollar and peg them to something more stable like gold (perhaps). That's when we will experience hyperinflation.
Initially cash will be king as we experience deflationary pressure. Although the stock market has been rallying for the last month, the long-term downward trend hasn't been broken. Housing prices are still declining in much of the US. Cash is still king for now...
...but that won't last long. I think we'll see prices begin to inflate by the end of this year or early next year. I'm already starting to transition some of my cash into assets.
I think you have to prepare for both.
In the near term, continued unemployment can lead us to a deflationary depression by the end of 2009/early 2010. Cash will be king.
However, as soon as the economy begins to rebound and unemployment stabilizes, severe inflation can occur if the Fed can't unwind its balance sheet and carefully raise up interest rates. This would follow the scenario above. Then we may have a 1970s style stagflation scenario.
Its clear that the money printing will lead to inflation, however, before we reach the stage of a Weimar Republic style depression in the USA I believe one of two things could happen:
1) The implosion of the US dollar is delayed by other currencies devaluing at a similar or even faster rate. When we reach the tipping point where joe six-pack is aware that we are entering into a global hyperinflationary depression the US, backed by other countries, will confiscate or control gold/silver and a new currency will be created. Fundamentally, bankers backed by governments will fight the loss of control over the money supply that would occur if we moved back to a gold standard.
2) Central bank gold sales, similar to IMF plans to sell 403 tonnes of gold, will be used to prop up fiat currencies. We may have one more brief wave of 'recovery' before the tidal wave hits the world economy. This will be when we truly enter into a deep inflationary depression.
Either way it is just a matter of time although I believe we have some time to get prepared for the coming storm. Layered on top of this is the burden of the retiring baby boomers which has not yet hit. This will need to be funded through money printing (wealth confiscation). As bad as a depression may seem it is necessary to get the world back on a path of sustainable growth. Unfortunately there will be many casualties before this is over.
Lots is being said about buying gold, but how? Do I buy little gold coins or larger ones? Which one will be useful to exchange when needed? Is it better to buy gold and silver on the stock market? Is using the ETF for gold is the way to go? Buy gold stock and hold. Buy silver stocks and hold. What about copper, is copper is a good idea? Or having the material gold to hide in a safe at the bank? or under one's bed? Is there an other way to acquire gold that make sense with the financial situation that we are in?
Thank you.
Louise
With Obama creating more debt in a few months than all former presidents combined means that the only way to pay for it will be to crank up the printing presses. People are preparing for the deflation style debt as you suggest which also guarantees the printing of fiat money to pay for our government's rewarding of incompetence. At any rate we are much less prepared for this depression than those people of the last one. Unlike what is likely to happen today, many never missed a meal in '29 because of the strong agricultural economy; they had no money but they could survive.
Since the entire world is on fiat money, hyperinflation will occur as this fiat money gets pumped into our system. This will cause the price of consumer goods (food, oil, housing, anything we use on a daily basis, etc.) to rise either gradually or sharply over time, in the near future. Thus, you will need more cash to buy the same products.
Therefore, people who are saving their money, are actually loosing their money...it's becoming less and less valuable over time. This is especially bad if their pay raise at work does not increase...or at least not increase as much as the inflation will.
People who are actively pursuing cash producing investments will be king since they will have the excess cash to pay for these inflated consumer goods and products. Depending on the number or quality of investments they have, they will have even more excess cash to play around with.
Bye-bye middle class and savers. They will be poor...as there will be only two classes in the future....rich and poor.
I will like to tow the line of prophecy for this end time as is well depicted in the story of Joseph in the Holy Bible (Genesis 47). Here, it was seen that there was famine in the land (somewhat like inflation) and the people were happy-go-lucky fellas who were satisfied with temporary nourichment. But, a time came that money failed, which they also attested to, and then they sold all: goods, stock, land,and finally themselves (depression?).
This is repeating itself, big time and people are loosing their money beyond their widest imagination. What can they fall back on now?
All i see is a return back to tangibility (land) for sustainability in this hour.
Thanks Robert for all the good work you are doing
Why?
Since 1971,after President Nixon took the US off the gold standard,the whole world is on fiat currency,and currency that is backed by debt.It's just as good as monopoly money.And mind you the world is not a board game.
the important point for me is The Fed chairman,Mr Ben will avoid deflation at all cause and will print as much money as it takes to avoid deflation.So there it is,it's going to be inflationary depression,German style...
Cash is trash. Commodities are good, and the original Lincoln greenback system would be a blessing. Open trade would be nice too. You know: I'll give you water from my well to grow your tomatoes, if you'll give me some of the tomatoes when they ripen. Who needs money?
I invited you to study the history of the Argentina Crisis in 2001.
And you will find very much points in common.
My take on the ongoing depression is ‘economorphism’. What was a deflation, has changed to inflation – obviously! If America is still suffering from the staggering blows FDR and his cronies have dealt use with the “Raw Deal”, then the ‘great’ depression of 1930’s was in a deflation of the USD, as stated; however, based on the astute observations as contended in the book thus far, we are historically beginning the upwards climb (the cusp) in the exponential growth dollar-to-gold inflation (see the Reichsmark-to-dollar value in 1922-1924.) This exponential growth is asymptotic to a vertical line, which un-like positive CF deals put together with zero money down have an infinite ROI, the rise over run factor is infinity divided by zero; basically undefined or what may be more colloquially known as an economic meltdown, a collapse if you will.
Being a loyal advocate of truth in history, I am a little concerned that short facts are given to help continue the discussion in the last two paragraphs of the last summary section 7 of Fixes or Farces, Chapter 4. Since the title to the book contains the connotation of ‘conspiracy’, why dance around the subject at hand in the part of the book? Why not call the programs a furthering control of the lambs by the wolves? I’m afraid the majority may miss the connection between what the government hands the people as help, is furthering the control of the people to rely and depend on the government for help – as is true with the work programs.
As far as the greatest fear of government officials is political unrest may be true for each constituent in our government (because they are looking for their next election), not all revolutions are caused by not being fed – which I may be falsely attributing to this section of the book.
I applaud you, Mr. Kiyosaki, for bringing one of the most important issues to the masses – “Financial Education” and the reasons we, the general American population as well as the entire world, aren’t getting it because of the conspiracy of the rich, id est – the super rich.
Thank-you,
Michael C. Schoech
I am from a "different" economic clime from yours, being a Nigerian. But I have read 4 of Robert's books and a little bit of economic history here and there. These got me on to this site, especially when I noticed what was going on in world economy. "This is bound to change some of what Robert has been writing and practising," I told myself. I was not disappointed when I saw "The Conspiracy of the Rich". You see, when this economic meltdown started, we were told here that it would not affect us. We relaxed and what do we have now?: Cash-squeeze, a bearish stock market, job losses, real estate downturn and general poverty! Not that we were any better off before these crises...However, I notice that our own naira has been losing out on the dollar since January by as much as 26%! Meaning that, as long as the US$ is the world's currency, we catch cold whenever it sneezes. To us here in Africa, if the world becomes awash with dollars, our own naira, shillings, or whatever will only "firm" dubiously! What do those of us just planning to move from E to B to I on the Cashflow Quadrant? We are apprehensive!
I think we should go back to Gold Standard, it has been proven to be a stable monetary system as it has real value. And gold can be accepted in all regions and all countries.
"IN SOCIALISM".
I agree with robert that bailout is bad, because it only helps the rich people by using taxpayers money, but at some point we need socialism in our life. Not all people would be rich, what I mean is that it's better to bailout poor people and teach them how to fish than bailout rich people. In any worse condition of rich people, they're still have assets and wealth than any poor people. "If we want to be rich than start giving"
"In Pharoh story"
As I remembered it was Joseph's story (or Yusuf in arabic).
-----------------Hi Robert-----------------
Gr8! Book. Nicely Explained but one question.
Why don't you send a copy of this book to PRESIDENT Obama and all other Government Officials so that they stop playing with life of people?
Inflation is happening.
Cash is trash. There has been no hint nor mention of the U.S. going back to a Gold and/or Silver Standard.
Additionally, the Rich Dad Team has been pointing out that government social programs will be in the $Trillions$ and look @ what's happened:
The amount of currency (not money...careful now ;-) they are discussing in the news has gone from $Billions$ to $Trillions$...and more and more instuitions are running to Uncle Sam for paper money. One after another, they all keep coming.
How do you know if you're in a hurricane? Well, usually you're getting wet and your umbrella is turning inside out! This is usually true except when you're in the eye of the storm, and this is where I think we are now. One of the greatest weapons we have to fight a depression is our knowledge. Knowledge of history and knowledge of investing.
I believe the current situation will not get worse because of our knowledge and actions that are being taken to prevent a depression. Remember, we wouldn't be in this situation if it wasn't for the greed and corruption that has finally surfaced in the past year. So, as long as another AIG, or Fannie Mae or Madoff scandal does not drop on our laps then we will be fine. The market did not crash. The market 'Successfully' and 'Remarkably' withstood the onslaught of attack after attack of greed and corruption.
We can stay in the eye of this storm until the storm dies down--we just have to keep moving with it and we have to not feed it what it needs to stay alive, which is greed and corruption.
Proofreading Notes:
Double “that that” in last sentence of the third full paragraph on page 1.
On page 1, you refer to “what these guys are smoking,” but are you referring to the toxic debt managers of Citigroup or other people that are saying “The worst is over?” This is somewhat confusing.
On page 3, why bother mentioning that you are “not pointing the finger at President Obama?” It looks and sounds like you’re pandering to the liberal democrats by trying not to step on their sensitive toes and by appeasing to their sensitivities. Socialism, as you stated, has been in this country for decades under the guise of liberalism—it has not been invented by Obama, it just continues to be enhanced by his new policies. And it’s also interesting that you later quoted President Reagan to define ‘depression’ and ‘recession.’
I think that Fiat Currency will be trash. Good for papering the walls.
The mentality that many people have is "entitlement" to the social programs that our governments have created.
I remember asking as a kid what happened in the "great depression". My parents were born just as it began. Their memories are that they had to live very carefully and together as a family. My Mom has good memories of her extended family working and living together. My Dad's Mom ran a Bed and Breakfast and his Dad was gone for long periods of time looking for work. They told me that the governments of the time created programs such as UnEmployment Insurance, and Social Wellfare so that people who fell on hard times would not be left homeless. That the reason the great depression occurred was because a few people where greedy and criminal. That the Government now had laws to prevent it from happening again. I believed this until I worked for unethical people and corporations. I believed this until I read your books. Then I became aware that the government and our education system is designed to keep people ignorant and passive with an entitlement mentality that the government and or corporations will take care of the people.
I know that I have been financially ignorant and made many poor decisions. I know the financial knowledge is currency of today's world. I know that you are passionate to teach the truth. I am passionate to learn.
I am now building a business based on education and making choices that leverage my skills.
Thank you for helping educate and wake people up to the truth.
The greatest wealth transfer in history is happening now. I truly hope that it is transferring to ethical, financially educated, and responsible capitalists.
World Monetary System is based on debt. Money are created from debt. When a loan is issued, more money are created. We need money to develop the economy, life standards, pay for innovations etc. Therefore people borrow money and thus infinetely create more new money. There are 2 films, which explain how this happens - "Money Masters" and "Money as debt". These films also strongly refer to Robert's book main idea - Conspiracy of The Rich. A number of really rich people cotrol world's money supply. Some will argue that Federal Reserve and other central banks control money supply, but Fed, just like the other central banks, is privately owned, which means that shareholders (super rich individuals, who act for their own benefits) can manipulate recessions and economic growth, regulate inflationary/deflationary processes and thus decide, whether cash is king or trash, simply by increasing or decreasing world's money supply.
In my opinion, we will see a German style inflationary depression. How can we not think this with a government that is printing as much currency as it is? (And, for that matter, as much as it WILL be printing in the future)
Ben Bernanke, the chairman of the Federal Reserve Bank, has written extensively, and publicly spoken that one of his worst fears is deflation! He is going to do anything possible to avoid that. Deflation will make our government’s gargantuan debt cost even more. As it stands, we are going to run a 1.5 trillion dollar deficit in 2009! Doesn’t this register with people? The previous record was 429 billion in 2008!
Where do you think this is going? Why aren't more people waking up to this obvious problem! Could a person run a household like this? Could a business run and be solvent like this? I think not.
(Ha-ha, the same people in government that are running these deficits are the same that are telling businesses how to run... it blows my mind!)
A few years ago I thougt about the time of unions.
Eu
North america
South america
AU
Aisia is more tricky - by oil and gas Russia, China, India, Iran and some small nations between them are in alliance...however I see that one as very weak...especially since chinas main water supply are depleted and their reseroirs are also quickly depleting.
So a new option emerges.
SAU (sout america) doesnt like US
AU probably dislikes most of the world (now cina and india are there as well as the west)
Far asia likes US because of its wealth, but if Us are wealthy no more?
Muslim community? and the restoration of the caliphats?!?!?
This lay up the time of the unions and their currencies, this could actually be a good thing if there are 5-6 large factions in the world and if one currency are getting out of hand - companies can switch curreny for payment, or to recieve payment.
We are never tought history.
We dont learn the history of money - a lot of our history are faked...for exemple Eurabia, Islam has been written as something nice and creative when it is not...then letting 54 Million muslims into Europa.
So - history are a tool for the rich to make us not see or avoid issues as real history, and money handling, and to donfuse us and to keep the lid on...in school I had no clue about things as simply as Robert wrote in Rich dad poor dad - my parents didnt knew either.
My parents only complains about bonuses and high salaries in the elite - they are partially right but they dont know why. They are indoctrinated by socialism - a socialism emptying their pockets whilst they believe captitalism is the bad guy - what capitalism? Chinese? USAs?
I dont think any currency but a new one will be king...what is left of other currencies? Japanese? Chinese? (both very undervalued) Swedish (8 biggest) US?
Sems they will hit the fan.
So I say a new currency or trash.
And with a new currency the rich can fool us even more taking a high price for the new money which make it a inflation depression.
Recently, Russia has become the first major country to call for a partial restoration of the Gold Standard along with China. If they do this, i think they would back a whole new currency with gold. Either way, when the world currency is formed, rest assured (please prove me wrong) the rich will get richer and poor will be poorer as the wealthy few once again control all the money.
Can someone elaborate on the effects of this move?
I am in two minds about this. On the one hand we are seeing massive devaluations in assets around the world which is obviously destroying wealth. If wealth is reducing so is the money supply as it is a measure of that wealth. Money is therfore able to purchase more assets because they are cheaper than what they were prior to the depression. Therefore cash would be king.
On the other hand it is the policy response by our various governments in trying to stabilise economies by freeing up money supply that could result in serious inflation. It all depends on how far they go. At the present time asset deflation has far exceeded increase in new money supply. I really have my doubts we are going to see a surplus of money supply in any of the major economies any time soon unless it is just handed out to all and sundry.
By the way I am from Australia so my understanding may be a liitle different.
I agree that will end up with ONE WORLD CURRENCY, BUT A DIGITAL BASE i.e electronic cash. The United States is a socialist society has been since the 1920's abd these bailout are purely ridiculous.
Digital ID's and Retinal Scanning will be a reality in 10-15 years. Serious Medical testing, Biotechnology will be a reality
We must teach our children, our dearest fanilies members and our friends financial literacy, as well as investing like the rich.
Thank you for all you do Robert K. Your books and games have paved the way for a bright future for me and my family. And thank you for the online interactive book...
With every new dollar that is printed today every existing dollar is worth less than it was yesterday.
Here in the Philippines people are preparing for the US type
depression..but not me...though i'm just 15 yrs old i'm already
aware of what will happen on our tomorrows....CASH Is trash....
Glenn, I agree with you. We are heading toward the 1 world currency. No longer can a person depend on any government or employer. God is the only source and always has been. That is why we have free-will those who hear let them hear.
Those who read this and get offended and go on about their religous ideologies, sorry, I have offended you. I am thinking maybe you should read this and truly understand. Let go of your pride man, it is the one thing that could be holding you back.
All this does not matter, yes it is intersting to figure things out, but does it really matter, since YOU do not know if YOU will live to see tommorrow? That is why I say, repent, humble yourself or God will. Read Romans 10:9. Don't you know that there is a reason for everthing? The only reason why God allows (not tempts) things to happen like this is to draw you close to him. Don't trip man and focus too much on this stuff, put God first and he will give you the desires of your heart. Psalm 37:4 All these things happening are meaningless.
My Brethern read Ecclesiastes 5. Go to biblegateway.com. You too soon, will find out that you need to stand in awe of God first, becuase God is what truly counts. God does not want to hurt you, he wants and does love you, no matter what you have been through.
May God Bless you Wholly and Richly!
Robert,
The mega rich money families have for years, methodically planned the destruction of America's way of life. They snatched control of the US currency with the establishment of the Federal Reserve. As long as they maintain control of our currencey and certain elected politicians, they could care less who is President or which Polictical Party is in power. However, their biggest gains toward power over Americans have been made with the aid of Liberal Democrats. Crashing the stock market in 1929 stripped Americans of their wealth, enabling the families to gain control of major US corporations for ten cents on the dollar. Their control of this country's major media outlets enabled them to slowly brainwash nearly everyone in order to attain their goals. It is their desire to destroy our currency stripping away any opportunity for the middle class American to create any degree of wealth. The elimination of close family units breaks the back of organized religions. To socialize and control all service organizations are part of their plans. Massive inflation must become the result of their printing trillions of worthless US dollars. This is intended to result in the circulation of a one-world currencey to make it much easier for them to manage their control over every country where they are well established. America's future is very bleak unless our middle class become effective activists in order to wrest away their control before our freedoms are completely taken away. Your "Conspiracy of the Rich" will become a major wake up call to stir the worlds slumberers into some form of action. Thank you for your contribution.
Robert;
i know you want to keep it simple; but you have over simplified.
the US recession was caused by a massive haemorage of money, M1, to cover margin calls, M4, after the stock crash. So much real money was erased from the sytem reconciling the M4 losses.
the German recession was caused by the Government, printing money , M1, to cover reparations payments required by the 1st World war treaty. The devaluation of the currency, inflation, ran amok; setting up the stage for the 2nd world war.
In the late 1970's Argentina flirted with a hyper-inflation driven recession; again as the Argentine government tried to repay loans to the IMF (US). I believe a a considered analysis of the Argentine situation to be more relevant to the situation.
The Treasury is generating a massive m4 supply situation, what happens depends on how the m4 flows are reconciled, or repaid. If the M4 money is used to replace M4 losses in subprime mortgages, then there needs be no dollar fall-out.
The real crisis here is the existing total M4, debt-instruments, which have to be paid at some point in time. If either China declines Treasury notes,a debt instrument, or Saud demands payment in a currency other than US$ for petroleum; then all hell .
The Government must then turn to the source of all wealth, the taxpayer, and extract additional taxes to pay off the debt. A situation which toppled the Argentine Government.
All depressions are not created equal and I think the coming one will be of great proportions. It will be so much so, that "cash will be trash." Our economy is like the world wide web, vast and invisible. The scale and the lack of transperancy contribute to all our economical issues we are having.
My grandmother, along with my great grandparents used to stash Gold Napoleon coins ever since I was a little boy, because they never believed in the money given to them by the government. She always thought that the government was out to screw her over and never trusted money.
I once visited her at the village with my brother and we found bags upon bags of Greek paper currency from the WWII. There must've been at least 10 million drachmas in there. When we brought the bags up, she started laughing saying they are all worthless. She said that she had to buy gold as fast as possible because that was the only thing that kept value, and in turn would use the gold coins to buy land around the village because nobody would ever accept the currency.
It's weird to me that all these memories are coming back, and I'm reading all about them in this book, Mr. Kiyosaki! :)
Basing on what we observed todays finacial crises. there is plenty of money swirling around the financial system today. not only mentioning the " bailout " word but also the stimulus plans of the U.S. government. President Obama's word during his first days in office is that; it takes money to solved this money problem. so, it is a clear indication that the U.S. government have to pump enough money in order to revive this ailing economy. and it is also a clear indication that there is a coming depression caused by inflation or a german type depression.
Since money is an artificial commodity and security, our impending threat seems to be more of the German type--an inflation-based depression. Clearly, though it is moderately controlled at this time, inflation is becoming more of a threat than a specter.