Robert Kiyosaki Says Hot Inflation Will ‘Wipe Out 50% Of The US Population’ – What He Means And How To Protect Yourself

Robert Kiyosaki Says Hot Inflation Will ‘Wipe Out 50% Of The US Population’ – What He Means And How To Protect Yourself

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

US consumer prices rose 8.5% in March from a year ago, the fastest increase since December 1981. That could give the Fed more reason to continue raising interest rates — something that is already casting a huge shadow over the stock market.

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

“If inflation rises, we will wipe out 50% of the US population,” he told Stansberry Research earlier this month.

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

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Consumer cracked

Kiyosaki is not exactly happy with the current state of the US economy.

“America has stopped producing products, we are producing bubbles,” he says, adding that we now have bubbles in the real estate, stock and bond markets.

The author also criticizes President Joe Biden’s decision to shut down the Keystone XL oil pipeline, which he says is a major reason why energy prices are so high.

It also brings problems for those who want to enjoy their golden years. If 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 broken.”

Time to protect yourself

Given his grim outlook, it’s no big surprise that Kiyosaki is a fan of safe-haven assets like gold and silver. Precious metals cannot be printed out of thin air like fiat money, and they have been helping investors maintain their purchasing power for centuries.

The price of gold has risen about 8% so far. The Russian invasion of Ukraine has given investors another reason to look to the yellow metal.

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

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

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

Bubble Tactics

Bubbles tend to pop – eventually. If they do, many people see their wealth take a big dent. But big dips also create opportunities for those looking to buy the dip.

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

During the 2008 financial crisis, the author began “buying real estate at bargain prices.” Based on how much real estate has risen since then, it’s fair to say this was a sharp move.

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