The Most Important Financial Lessons You Need Right Now - Robert Kiyosaki
Summary
TLDRRobert Kiyosaki hosts a thought-provoking conversation with entrepreneur George Gammon about the current economic landscape. They discuss pressing issues like high inflation, the wealth gap, central bank policies, digital currencies, and more. Gammon provides reasoned arguments on why free market capitalism, not government central planning, is the best system for raising living standards. Kiyosaki and Gammon urge people to educate themselves financially and warn against following mainstream narratives blindly. Overall, an insightful dialogue on money, markets, and macroeconomics.
Takeaways
- 😟 Global consumer price inflation is the biggest crisis since WWII
- 👎 Taxing the rich won't solve inflation; we need to produce more goods & services
- 😢 Friends are committing suicide after losing everything in the crypto crash
- 👵 When your 75 year old mother-in-law asks about crypto, it's time to drop back & punt
- 💡 This crisis presents huge opportunities in commodities like uranium & coal
- 😡 Marxism & central planning always hurt the poor & middle class the most
- 📉 Asset bubbles are created by the Fed keeping rates artificially low
- 🙈 People don't learn from history and keep repeating the same investment mistakes
- 💰 Real assets like gold & silver maintain purchasing power over thousands of years
- 🤔 Central bank digital currencies give total control to track all spending
Q & A
What major economic warning did the IMF recently issue about the global economy?
-The IMF warned that the world economy is going to hit the biggest financial headwinds since World War II.
What does Robert think is a key reason why some people become rich while others stay poor?
-Robert believes a key reason is because poor people often have poor financial education and poor role models, like parents or teachers who don't understand money.
What does Robert recommend as an alternative investment to stocks, bonds and mutual funds?
-Robert recommends investing in assets like rental real estate, oil wells, and commodities.
What is the main risk Robert sees with cryptocurrencies right now?
-Robert is concerned about the volatility and mania in crypto, indicating we could be nearing a bubble bursting.
What does George think is likely to happen to most cryptocurrencies long-term?
-George thinks most cryptos will eventually fail, similar to the dot-com bubble, but winners like Bitcoin and Ethereum may establish lasting value.
What type of investments does George think will perform well in the coming years?
-George believes old-school commodities like coal, uranium, and precious metals are poised for a supercycle as central bank policies unravel.
What does Robert say often happens in bull markets?
-Robert says bull markets often make stupid investors look smart temporarily before they get wiped out.
What does George see as the problem with using inflation to justify taxing the rich more?
-George explains that taxing producers actually reduces goods and services, worsening inflation, rather than solving it.
What book is Robert referring to when he talks about the elite seeing average people as inferior?
-Robert is referring to Plato's Republic in which philosopher kings rule over the ignorant masses.
What does George think about the potential for escalating global military conflict?
-George sees disturbing parallels between the geopolitics leading up to WWI and the situation unfolding today that could spiral out of control.
Outlines
🎤 Introducing today's guest George Gammon and previewing the economic turmoil predicted by the IMF
Robert introduces today's guest George Gammon, a neighbor and smart young man. They preview discussing the prediction by the IMF of the world economy hitting major headwinds, the largest since WW2. They plan to talk about what that means and what people can do in response.
🏡 How Kim got started investing in real estate with high interest rates
Robert tells the story of how Kim got started investing in real estate in the early 1990s during a bad economy with 9-10% interest rates. She was able to buy a small 2 bedroom house, putting almost nothing down and getting $25-50 a month in cash flow. This changed her mindset that she could make money with little money.
👨🏫 How George educated himself about the financial system after retiring
George shares his background of retiring in Las Vegas in 2012 with some money, but needing 5-6% returns to maintain his lifestyle. He got into real estate to find cheap cash-flowing deals. This led him to educate himself deeply on the financial system, economics, and investing by reading many well-known authors.
🌟 Why financial literacy is missing from schools and 401ks
They discuss why financial literacy is not taught in schools or promoted, besides just getting a 401k invested in the stock market. Robert argues this is a limited perspective, not showing full historical data. He also explains how Kim had to contend with her father's criticism of investing outside the stock market.
🚨 Concerns over people losing everything in the crypto crash
They discuss stablecoins crashing and people losing millions in crypto, with reports of some young investors committing suicide after losing everything. Robert argues crypto still seems unreliable if people with no background like his mother-in-law want to invest.
🔮 Predicting the crypto bubble bursting like the dot-com bubble
George compares the crypto bubble and crash to the dot-com bubble bursting in the 1990s. He thinks crypto likely has a future but most coins will fail, perhaps besides Bitcoin and Ethereum. He applies wisdom from famous investors about panic and hysteria in markets.
🤔 Questioning universal basic income as a solution
They critique proposed government solutions like universal basic income as trying to solve economic problems like inflation by creating more money and producing fewer goods, which is the opposite of what would really work.
😡 Rant against Marxism and praise for free market capitalism
Robert goes on a tirade against Marxism and government intervention in the economy, arguing it always ends up harming small business and the middle class. He passionately advocates for the power of free markets to bring down prices and raise living standards.
🔎 Calling for learning history to predict the future
They discuss how history repeats itself, like the patterns leading up to major wars. George emphasizes the decades of monumental change happening now, much like previous periods of upheaval. They advise learning from history.
💰 Appreciating the stability of gold versus economic chaos
Robert shows gold and silver coins, praising how they hold value against chaos. He invites George to their gold mine investment. He argues schools teach the opposite of how to build real wealth, but says exciting opportunities exist now for those who don't follow traditional thinking.
Mindmap
Keywords
💡economy
💡inflation
💡Federal Reserve (The Fed)
💡cash flow
💡financial education
💡assets
💡Marxism
💡centralized planning
💡free markets
💡gold
Highlights
The IMF said the world economy is going to hit the biggest financial headwind since World War II.
Higher oil prices cause higher fuel prices and higher food prices which is going to wipe out the poor and middle class.
If you're hanging out with idiots, you're probably an idiot.
If you want to be a Marx go to school, especially college.
The problem with bull markets it makes stupid people look smart.
The way you solve consumer price inflation is produce more stuff.
Free market capitalism brings prices down because you can't compete otherwise.
Central bank digital currency is absolutely 100% central planning and Marxism.
Orwell's 1984 is happening right in front of our own eyes.
The bull goes up the stairs and the bear comes out the window.
Now more than ever financial education is important.
History proves people don't learn from history.
You've got to buy panic and sell hysteria.
We're going into a long-term super cycle for commodities like coal and uranium.
This is the most exciting time, but not if you hang out with idiots.
Transcripts
this is the Rich Dad radio show the good
news and bad news about money here's
Robert kosaki hello hello hello Robert
kosaki the rich radio show the good news
and bad news about money now we're
having a very very special friend he
used to be a neighbor right next door
over
there it's one of the smartest young men
I know is George gamon and we're going
to have a very exciting show today
because I've been on this the IMF Davos
Switzerland said the world economy is
going to hit the biggest Financial
headwind since World War yeah yeah what
does that mean you know what I mean
that's what we want to talk about but
more importantly what can you do so
George welcome back you had a fantastic
fantastic
fantastic I mean event in in in Dallas
the collective yeah and we talked about
it is you know when you think about what
are your assets
today if you're hanging out with idiots
you're probably an
idiot and and so when when you put on
you and Kenny put on the collective I'm
just blown away at the quality of people
that showed up they're already wealthy
and they're proactive moving
forward and you know then I'm in Walmart
looking at another breed of character
running around there they're Clueless
yeah and what I found overall cuz you
know my whole Fascination is why are
some people rich and why are some people
poor but in 2022 the gap between rich
and poor is now accelerating it's
getting wider than the Grand Canyon but
a lot of the times the people they
getting poor is simply because they had
poor teachers yeah yeah you know their
parents are poor or they come from a
poor background or like in my case
they're all School teachers who think
you got a PhD that's all you need yeah
and and unfortunately too they if they
don't see the world the way it really is
they assume that the they assume the
solution or the solutions that are
presented to them by the central
planners and the politicians correct
they just take that at face value is
that though oh well the solution for
Bridging the inequality Gap if you will
is just to tax the rich we'll just take
everything from the rich and we'll just
let the politicians take what they want
and then just give the table scraps to
the poor and somehow that will reduce
the the wealth Gap but as Margaret
Thatcher said uh that'll just make
everyone equally poor
you know what we want to do is we want
to make the poor in middle class we want
to make them richer correct and for
whatever reason well it's because those
people don't have that Financial
education that you've been talking about
for the last 30 or 40 years you don't
get it in school yeah they assume that
the way that you you know again bridge
that Gap is is by taking from one group
as so somehow there's like this fixed
pie and we have to realize that in free
market capitalism you know that pie
contines to grow and grow and grow and
that brings up the quality of of life
for the the people at the bottom and
that's where're going to the infinite um
conference with Kenny yeah yeah because
it's infinite yeah money is infinite I
think other thing is about the media is
so biased today I can't stand it yeah
like 60 Minutes this sun past Sunday
just as IMF is making their announcement
this billionaire young entrepreneur he's
giving every kid a free college
education with their parents I said Well
it's they're going to college but what
do they learn about money yeah nothing
or what do they learn learn about
Marxism yeah everything exactly that's
my point that's my book that's that's my
book The capitalist Manifesto you know
if you want to be a Marx go to school
yeah especially College yeah oh it's
horrible so George how did you get so
smart at such a young age telling us
about your
background well I mean I retired in
2012 and I didn't didn't know anything
about the FED I didn't even know what
the Federal Reserve was where where'd
you grow up Portland Oregon Portland
yeah and uh I but back in 2012 at the
time I was in Las Vegas and uh I was
fortunate enough to retire with a little
bit of money but I needed to make a five
or 6% return to make sure that I didn't
have to go back to work right and uh so
you're an entrepreneur yeah I was an
entrepreneur for many many years right
and I I knew how to make money but as
far as investing that's a completely
different skill set and did you go to
real estate what happened yeah I went
into real estate because I was trying to
find something that was cheap and cash
flow that's right debt and back in 2012
that was all of the above yeah and that
was a good time to buy so I went into
real estate but I really wanted to learn
kind of how things work yeah and that
took me down the path of Milton fredman
and Thomas soul and people like yourself
and Jim Rogers and Doug Casey and Rick
Rule and Jim Rickards and Peter Schiff
and all these people and uh that's where
I really got the bug that's when you
geteducated yeah that's right that's
right and the funny thing is you know um
Kim met my rich dad you know she's going
what is real estate what is real estate
so we moved to Portland yeah and she cut
her teeth on a little place called cell
um East Morland yeah there a golf course
there great Golf Course East Morland
Country Club my East Morland golf course
and so we she started buying her first
little house there the mark interest
rates were like 9
nine or 10% okay and she bought a little
two-bedroom one bath house she put
almost nothing down and she got 25 bucks
a month or 50 bucks a month it changed
her life yeah she says I can make money
with nothing yeah right and now you know
it comes a freaking
monster in a good way but it Chang but
it changes your mind you go I don't have
to spend the rest of my life working mhm
and interesting her father was a Mr
stocks and bonds
guy he goes what are you doing you're
investing in real estate and she had to
fight her dad and thank God she had met
my rich dad and my poor dad and so she
had three dads to contend with yeah and
she she she today I mean like you know
we we bought the biggest we invited you
to come Kenny and I are in the biggest
gold mine in the world yeah we paid
nothing for
yeah we get in for nothing but that's
the infinite return which Kenny's having
couple of weeks from now yeah what was
fascinating going back to that last
event that we did in Dallas that you
referenced is we did uh a property tour
and we saw a lot of Kenny's properties
there in the Dallas Fort Worth area some
of his apartment complexes and after he
took the group around 100% debt well he
went he actually had a whiteboard did he
tell you that no no no yeah so he had a
whiteboard we did a tour and he took
that whiteboard and you put it in the
office
and an ammonization yep y but that's
what we teach but our schools to to go
to school get a job and get a 401k I'm
going oh gag me I mean I would never do
that yeah but if you had bad teachers or
poor teachers or your that's your
parents said that's what you do yeah but
even that in of itself is a horrible
argument it's you just invest in the
stock market you're 401K because what
happens is these financial planner I'm
sure you know this you know yeah
exactly sto my Pion by 401K see this is
very important because what the the game
these financial planners play is they
only show you charts going back to 1981
and this is when Paul vulker raised
rates so since then we've been in a down
cycle in interest rates and and you sure
you can say the stock market always goes
up right if interest rates are always
going down but what happens when
interest rates start going back up and
usually the cycle is about 3040 years so
if you look at charts of the stock
market going back to
1927 to 1980 or 81 adjusted for
inflation it was pretty much flat but
see they don't tell you that right they
just they just cherry-pick the data of
course they want to give to you in order
for them to collect their fees but
something even worse happening is the
last crash was let's say 2008 when the
repo Market reversed and all this stuff
and most of these financial planners and
real estate brokers all they know is a
rising market yeah that's right all you
know since 2008 we've been nothing and
Happy Days Are Here again because they
kept dropping interest rates real estate
went up uh stock market went up Bond
markets went up yeah and we were just
talking to Ral pal and he said the
problem with that is that the the bull
goes up the stairs yeah the bear comes
up the window or I've heard the wind the
elevator but yeah window that's a little
bit more dramatic is it but well pal
says when it comes is four
months that's how fast this bear was
going to go out the window so so anyway
so you you got so you invested in
property where was your property in
Kansas City perfect play yeah you know
and my objective might help some people
kind of uh think about real estate or
Assets in a different way the the first
goal that I had when I retired is just
to look at my monthly expenses and say
how can I get my money to cover those
expenses yeah yeah you see and so how
can I get my cash flow to
things so then I know that I'm never dra
my savings down and I think it sounds
easy it sounds common sensical but very
few people just kind of connect those
dots and realize that if they can create
enough cash flow with their portfol
their portfolio to cover their monthly
expenses that is when you're financially
free yeah that's a cash flow game out of
the rat race all this stuff you know you
got 10,000 a month coming in you got
7,000 expenses 3,000 net you're free
yeah and this tax takes for it mhm I and
they but in school they get a 41k I'm
going are you kidding me right but this
is the this is the challenge for Dad
company like I listen to Dio and all the
very smart guys but they're all stock
guys they always say get a diversified
portfolio stocks bonds mutual funds I
don't have any I mean I have companies I
took public myself right I own the
stocks and you like silver companies
that are public and all this my stock
side
control and then we make most of our
money from Kenny not most of it but you
know we get income from 13,000 or 14,000
rental units with no no equity in them
it's pure debt and we pay no taxes and
then you know we invest in oil wells
right and uh we don't invest in oil
companies oil wells and so when Biden
took the u e the Keystone XL pipeline
they cut that project oil went from $30
a barrel to $130 a barrel 400% raise in
one day I actually liked Biden for about
20 minutes yeah but unfortunately as you
know George the problem is higher oil
prices cause higher fuel prices and
higher food prices which is going to
wipe out the poor in middle class yeah
because they're the people that get
disproportionately affected because a
higher percentage of their income goes
to those things that are going up in
price and they want to tax the rich but
there's too few Rich yeah what they
don't yeah we don't pay taxes anyway
yeah the problem with that argument I've
been hearing that a lot lately I've been
hearing that in Davos all yeah we talked
about that prior to recording is the the
cure for inflation is not more money
that that that's usually the the the
cause of inflation or Consumer Price
inflation the the cure for Consumer
Price inflation is more stuff yes
produce more you got to produce more
stuff yeah produce more oil guess what
yeah so if you're just taxing the people
who are producing that that defeats the
purpose that's going to create most
likely higher Consumer Price that's what
Sarah's complaining about is that the
the uh baby formula it's it's they got
so many regulations they can't produce
it here yeah everybody's blaming this
baby formula regulation on supply chain
but that's not actually what's happening
it's overregulation yeah right so we
just imported how many millions of cases
of baby food the United States the
greatest nation in the world had to
import baby food something's wrong yeah
well look at our trade deficit I mean
we're importing everything we're we're
consuming so much more than we produce
but we've been doing that for DEC we can
print money to pay for it right but but
we can't print food we can't print
energy and at a certain point if those
countries that we're getting that from
say you know what it's it's it's you're
we're not going there anymore we're not
playing your game you know but isn't
that what's happening yeah so great
example is let's look at China starting
to do deals with Saudi Arabia and I
think most Russia in Yuan okay so what
most people just see that they say oh
it's kind of the deterioration of the
dollar but no there there's far more to
it than that so before that happened the
China would need dollars to buy the food
or the Commodities The energy they
needed oil that's right so they needed
to earn those dollars so that's why we
they would export all these items that
we buy at Walmart because they want our
dollars so they can go buy the oil so
they're they're in a very difficult
position there but if they start doing
these deals in Yuan for oil now all of a
sudden they can print the currency to
buy the oil they don't have to earn it
you see smart for them but yeah but what
that means is now they the the United
States doesn't have as much leverage
over China as it once did so the United
or so China can start gradually it
doesn't happen overnight but they can
start to tell the United States to pound
sand and if we can't get our stuff from
China where are we going to get it we're
not producing it here internally in our
domestic economy so then you where do we
get it we get it somewhere else at a
much much higher price if we can get it
at all well I just I you know I'm a
macro guy too but there was a guy named
mormar
Gaddafi and he told the US pound send
also we're going to shift we're going to
sell our oil in Dinars yeah not dollars
and he
disappeared yeah yeah
I guess you don't mess with the
US yeah but I don't know that you can
compare Libya to I China it's a it's a
different ball game you don't mess with
the money yeah you know and that's
that's when we come back we're going to
be talking more about this because you
were talking about the crypto and the
Central Bank digital currency Central
Bank and the IMF sdrs and all this stuff
they're playing games with money big
time right now well they're trying to it
you know it reminds me of the quote uh
that we were discussing actually the
other day from Kissinger remember what
was that who was the main influence on
CLA Schwab who runs the world economic
for I didn't know that yeah we could
tell that story when we get back from
break if you want me to but the B but
his quote was if you control the food
you control the money excuse me if you
control the food you control the people
if you control the energy you control
countries and if you control money you
control the world that's right and that
was what uh Rothchild said I care not
make who makes the rues right as long as
I control the money yeah and I think
that's part of their objective and we
hear them out just explicitly talking
about it at Davos this week that's real
gold and that's real silver this is
$22,000 that's concentrated money yeah
and this here is about $35 yeah but more
importantly this has maintained its
purchase power over the last 5,000 years
so you can buy just as much stuff today
with this little go gold coin as you
could have 5,000 years ago and that's
why I invited you to come to our gold
mine that we bought for nothing down in
Utah yeah yeah but it's because we're
taught to think differently M and that's
what we teach yeah so we come back we
going more with George my friend George
gam here I don't how these young guys
get so smart old guys are getting taught
by young guys go the right
[Music]
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free.com welcome back Robert k richad
radio show the good news and bad news
about money Our Guest today is very dear
friend he used to be a neighbor right
behind this wall here yeah George gam
but he found religion and moved back to
Colombia the point here is this is that
you are who you hang out with absolutely
and we talked about the Gap gets wider
and wider depending on who you hang out
with do you know and uh if you're
hanging out with Village idiots guess
what you're falling behind big time yeah
and you know I'm a perfect example of
that because like we were saying earlier
I retired in 2012 but I didn't start my
podcast or my YouTube channel until 2019
19 the podcast not till
2020 and in the interim you know when
you're retiring everyone thinks that
life on the beach just sipping pin
clades is going to be great but that
gets old after about two weeks and you
can feel yourself yeah deteriorate
mentally and and I was saying to you
from Portland and Kim butterer rental
property in Portland by East Morland and
um she found Religion she could buy
something for nothing yeah in the worst
economy ever yeah interest rates were 9%
and people are crying the blues at 5%
yeah and once you understand that's it's
all in your head and you can adjust the
dials in your brain yeah you'll see a
different world and and it's all about
that knowledge yeah and so we have r
palel on just now there's more
opportunity
today but people are committing suicide
so what were you saying Sarah what's
happening with during break during break
we were talking about the future of
digital assets and I was asking George
about LUN this big crash of stable coins
millions of dollars were lost now did I
get into an argument on that
one it was
civil no no this is George George George
is a Riad radio show you know I'm known
for my tact and discipline and all this
stuff my silver tongue and this every
time I hear it from the you know the
experts fng's fnu guys this will never
go down I mean how many times have you
heard that one in you I I'm I'm older I
hear it all the time so he's yelling
about this will never go down and I go
why it's got algorithms I went oh God so
I started screaming at him I said don't
give me that crap you know and all this
stuff and two days later boom goes to
zero almost right yeah and so it sent a
shock wave I guess is what I was trying
to say earlier and you know so does that
you know are we seeing this trembling of
you know maybe this isn't the future and
you had a great comment about the do
Comm area yeah well I think that it'll
be and the real estate area too same
thing happened yeah I mean I think it'll
be similar in the sense that uh you know
back in the late 9s everything wascom
and they were getting these billion doll
valuations and it is true that the
internet was the future yeah it is true
that the internet was the future but not
all those companies you know 99% of them
go bust and I think it'll most likely be
the same with crypto there will come you
know maybe Bitcoin ethereum will come
out winners in the long run and will be
here I don't know what purpose they'll
serve uh you know I don't know if
they'll be transactional in the case of
Bitcoin or be more of a digital Reserve
asset St value I'm not quite sure you
know what what place it'll play but uh I
think it'll most likely play out the
same way the bubble burst in the 19 uh
90s but I but I didn't know this they're
committing suicide oh yeah there's a
whole like Reddit is going crazy over
this crash in fact um Reddit it's
another like social Okay so they're
they're talking you know friends of
theirs committed suicide they lost
millions millions in this this stable
coin you know what was fascinating is I
did the the fresh and fit podcast you
know those two young guys out in Miami I
think you know them and I was talking I
was talking to him off offline about
cryptocurrency and they said that their
friends you know in this 20-year-old age
group are so into crypto that they
that's all they have and to to the point
where excuse me a lot of times the fresh
fit guys will have to lend them money
for lunch not because they don't have
money but all their money is in crypto
100% of it and billionaires but no cash
yeah or or millionaires or thousandaires
maybe in this case but you it's not in
Bitcoin and ethereum it's in all these
lesser known altcoins that they think
are going to or have the potential to go
up a THX and they're trying to be the
next uh you know Superstar on Instagram
billionaire or whatever that gets rich
in crypto and then they're they just get
completely wiped out and it gives them
that very very difficult lesson that uh
you know young investors have had to
learn throughout the ages that uh it's
not different this time uh you know to
your earlier Point we've been through
this before I've heard that no it'll
never go down I'm going the moment I
hear that I know it's going down yeah
and there's always uh you Jim Rogers I
think articulated it beautifully in the
market Wizards books where he says You'
just got to buy panic and sell hysteria
and sometimes you know you can tell when
there's hysteria and when Bitcoin was at
65,000 is and I'm long-term bullish on
bitcoin me too but you got to pick and
choose when you buy based on that panic
and hysteria and there was just I was
seeing it on Twitter non-stop I was
seeing it in social media I was seeing
it in all these like chat rooms like
Clubhouse where the hysteria was just
mindboggling and uh that's something
that I think people can sense uh but
they need to make sure they're not
getting caught up in that emotional
frenzy they're going to make bad
decisions have a great story so you know
how you say when um you get out of real
estate when like the everybody comes a
realtor what's the you know like the
cashier gives you you know call me okay
here's how I know I I can't trust crypto
yet is my mother-in-law who's 75 sent my
husband a text saying I think I want to
get into crypto yeah right
okay it's time to drop back and punt
yeah or or at least it's that tells you
now's not the right time to buy yeah
now's not the right time to buy and then
what we were saying yesterday is that
the problem with bull markets it makes
stupid people look smart yeah and the
saying is the bull goes up the stairs
bear goes out the window and when it
comes down it comes down fast my
question is though I didn't know people
are committing
suicide wow I mean these are
20-year-olds that probably didn't have
anything really to start in got lucky
thought shoot go to the Moon or whatever
the phrase is and then they lost it all
well the thing to the point they don't
have any cash this is deja vu all over
again because in 1929 the saying was
watch out for falling Bankers cuz they
were coming out of the window killing
people in the street below yeah but at
the end of the day who do you blame the
FED it's the FED because this is all
just PE pushing people out the risk
curve well it's pushing people out the
risk curve because you keep interest
rates artificially low do you listen to
the
fed well there you go I good
point so the the whole thing here is you
know get smarter that's what we're
talking about least hang around smart
people yeah yeah I mean oh my God you
know it's going to be the as Ral P was
saying man we're going to make so much
money because we have carbon credits and
we have biotech coming online and all
this there's more opportunity today but
not if you're hang out with idiots yeah
and I would actually
look at it from a different perspective
than Raul I I do think there's
incredible opportunities but I think it
would come in it could come there but I
think it will also come in pretty much
the opposite Arena and that's just old
school Commodities I think we're going
into a long-term super cycle Absolut I
think you're going to see prices of of
things like coal uranium and I think the
the the overarching theme and pretty
much everything that you've said for the
last 30 or 40 years is if you're going
into an investment and everyone else is
doing it and that's what they're
teaching you in school you're probably
not going to make money you're probably
going to lose money but if you're going
into an investment and every single
person is telling you Robert you're
crazy what are you talking you're
absolutely out of your mind don't do
that those are the Investments where
you've made the most money and it's been
the exact same thing in my life in Jim
Rogers life and probably in Ral Paul's
life yeah and what but you know like we
have no stocks bonds or mutual funds
because my rich dad taught me
differently so today you know like I was
saying and I said this all the time we
own oil wells we don't own oil companies
we don't own stocks so again when Biden
cut the XL Pipeline off oil went from 30
to
130 holy mael we got we're making so
much money today the dangerous thing is
people are being wiped out inflation's
killing them food and fuel that's right
that's what scares me yeah you know yeah
and that's the moral of the story and
that's the way these things always play
out is when the central planners try to
uh or who knows if they're trying to do
good they might be trying to do bad you
know going back to maiai we had that
conversation the other day the prince
yeah the prince that's right they think
differently than we do yeah but any
intervention they have in a free market
economy it's always going to make things
worse for the poor and middle class
whether it's through the Insidious uh
you know invisible tax of inflation or
whether it's just you know propping up
uh asset that are creating uh you know
these bubbles where people get
completely wiped out and misallocation
of resources and malinvestment I mean
we've got to understand that Central
planning or Marxism as you always say
this is a very very slippery slope this
is the road to ruin or as Jim Rogers
says you know this is the quick path to
the poor house uh we need to understand
that free market capitalism is not
perfect but it's the best system we have
to raise this uh standard of living for
the poor in middle class and the and the
crazy thing is they're trying to use
inflation as a reason to tax the rich
and it's just completely perverse
because the way you solve Consumer Price
inflation prod more is but like we're
were saying by producing more stuff and
uh you know if you're taxing all the
people that are producing are we going
to have less stuff in the future or we
going to have more stuff no as you said
the money just moves yeah right we move
to where we're treated the best yeah
well and as wheel rate sorry to
interject but Tom wheel rate always says
you can't tax the rich because the rich
have right they they earn their money
and assets so you're only taxing the
poorn middle class so it's a a solution
that will never work and inflation is
the worst tax of all yeah and it just
causes more people and what R pel is
saying is we're going to shift to U Ubi
Universal basic to and Mt which is
Marxism yeah someday you'll own nothing
and you'll be happy the government will
give you your money yeah and I just want
your audience to think about this for a
moment cuz I I really want to beat this
dead horse cuz I think it's important uh
you know we are experiencing Global
Consumer Price inflation right now not
just in the this is a huge huge problem
a problem that we haven't seen biggest
Global crisis since World War II yeah
absolutely that was yesterday that's
right go keep going excuse me and
they're and their solution is to do what
Ubi let's give people more money and
let's restrict the the supply of goods
and services even further by making it
harder for the producers to actually
produce so what they're doing by they're
trying to sell this to the general
public the way we solve Consumer Price
inflation is by creating more money and
producing less stuff it's it's the
complete opposite yeah we need less
money and we need more stuff so I'm ask
this question when you when you give
people money does it increase the debt
well it it it it depends on how that
money is generated I understand but
somebody somebody's going to pay the
piper in there yeah usually it's going
to be produced through the issuance of
new debts so if it's the government
issuing new debt for that deficit
spending or if it's a bank issuing new
Consumer Debt then you've got a a a debt
uh you got a loan to match up with that
new money that was created yeah so is
there any money in a credit card is
there any M yeah a credit card increases
the money supply no but is there any
money in it oh no it's debt yeah and
that's how money is created yeah you
have to borrow it into existence yeah
that's right that was 71 you have to
borrow the money and money is created
that was a fraction Reserve System
fraction Reserve System says you put
your savings in a bank let's say $100
the bank can lend out thousand 10 to one
leverage in there yeah now they don't
even need that no and that's they don't
really need Reserves at all to lend they
can just create money out of nowhere and
that goes back to the central bank
digital currency and them trying to ban
cash and I think that's why so many
young people are in crypto they know
something's wrong they just don't have
the big macro picture of it MH and they
get caught up in all these swings so you
were talking about cbdc Central Bank
digital currency what does that mean to
you George Well a central bank digital
currency simply means that we all all
the average Joe and Janss in society
including the businesses and
corporations now have an account with
with the Central Bank in our case it
would be the Federal Reserve but isn't
that Marxism Central Banking it's it's
it's absolutely 100% Central planning uh
because what happens now is the banking
system is in charge of creating most of
the new money now it's a little bit
different with these deficits and
quantitative easing and whatnot but
usually it's the banking system so if
they keep that loan on their bound if
the bank continues to own the loan they
want to lend to someone who's going to
pay them back right really so hopefully
they're going to lend it for productive
purposes meaning the majority of money
that's being created is going to create
more goods and services right and that's
why you don't have the inflation even
though the money supply increases now
what happens called capitalism yeah yeah
and that's why the free market works
right so and that's by the way why the
free market creates deflation right not
not inflation prices going down
capitalism actually brings prices down
yeah because you can't compete otherwise
yeah which brings the standard of living
for the poor in middle class up up yes
but they're teaching Marxism in school
that was my book you know capitalist
Manifesto that whole thing is so
backwards run by school teachers oh my
God yeah exactly so if we move into the
system with a central bank digital
currency then all the bank accounts go
to the fed and then the FED determines
who who gets the loan and why and the
the big key there is the Fed doesn't
have a profit and loss they can lose
money so we're a bank bank has to lend
productively the FED can lend in a way
that isn't productive they can lend to
whomever they want they don't have to
worry about being paid back so that's
centrally controlled money supply debt
creation and that to your point is
Marxism but it's also a massive control
it's Orwell big brother is watching yeah
they can tell exactly where you're
spending your money what are you
spending on and where is it yeah so
going back to the IMF and this gal
that's in charge that was speaking at
Davos she was saying how we need a
central bank digital currency and the
the the the global governments need to
come together and of course the IMF
would manage this in the world economic
form but they need to come together to
create a solution for crossborder
payments this is how she's selling it is
that all these poor people have to pay
Western Union you know 20% fee or
whatever and she's right but she doesn't
care about that she just cares about the
solution which is the global governance
coming together with this payment system
for cross border that's seamless and
free but of course we're using a central
bank digital currency and then the
reserve asset becomes the SDR which is
the currency of the
IMF they have control over the money
supply and it's it's not as uh it's not
the system we have now with the United
States having the global Reserve asset
or the global Reserve currency and the
banking system creating that uh currency
globally right the biggest thing to with
with Central bank that I'm not you know
not Financial I mean not crypto smart or
anything this but it's Orwell's big
brother is watching they can track you
and the reason I like this stuff here
it's real gold this has been here since
the earth was formed this is silver been
here the Earth is formed I can run with
this and spend it anywhere in the world
they can't track me yeah and so when
Bitcoin came out remember that there was
saying oh they're going to use it for
the drug trade and all that well you
think dollars aren't exactly give a
break I mean how can people be that
stupid and drink the Kool-Aid from the
fed well not not everybody is I was I
was in the airport yesterday and I was
going through the line at the security
line and I actually saw someone wearing
a shirt that said make
1984 fiction
again what does 84 mean to you because
that's a really interesting book you
know well it's it's pretty much what
we're seeing play out right in front of
our own eyes I mean it was supposed to
be fiction but uh in my opinion this is
the objective of these Davos types you
know the global Elite and I don't think
it's a conspiracy theory I think they're
coming right out and saying that hey we
want the world to consume less energy we
want to reduce the population the the
birth rate they'll say and we want to
you know gain we want power and control
because it's in your best interest look
at what the who came out with with the
this this uh Health treaty did you see
that the World Health Organization yeah
they came out with this uh opinion I
don't know if it this uh proposal for a
treaty where basically they control in
the future every country's uh position
on lockdowns on maske wearing on all of
these things that we've seen play out in
20120 and 2021 the The Who Wants to be
in charge of all of that so all these
countries sign treaties that say yes
we're giving our health sovereignty over
to you Global Elite but that's the World
Health organ the World Bank everything
is world yeah there's no Sovereign yeah
yeah you know no no National world
that's right well there's they they so
you've got these two opposing forces
going on right now most of us in the
real economy and I think the people
listening to this show they want
decentralization they they want control
of their own destiny where they want
privacy also prived few privacy Freedom
you know a few words like that that's
and they want it for their children
where these Davos types they want the
opposite they want Complete
centralization because they think that
all of us are inferior stupid dumb Rubes
and you know we're only going to make
things worse so we need to give them all
of our freedoms all of our liberties
they need to have complete control to be
able to micromanage our life and that's
the only way that you know their minds
that going to survive that's that's what
Rich Dad Poor is my poor dad was
brilliant brilliant academic was flat
broke you know but he thought all he
needed was his PhD and in Stanford and
Northwestern University Chicago and he
just thrived on that and my rich dad who
never went to school goes your father's
an idiot but they think they're Superior
yeah that's right they think they're
Above the Law some of them the other
thing too the thing about you know like
reason we like macro is history does
repeat you know as Jim Rogers say one
thing he history teaches you that people
don't learn from history yeah and so
what I read Anne ran atler Shrugged you
know said where did where did John G go
hiding I went do I have to hide I mean I
was you know she's a she was she hasc
from Russia yeah right so when I read
that book where is you know where is
John G hiding I went looking for a place
to hide and so that's why Kim today is
on I want said in South Carolina on a
private island hiding with people who
subscribe to an rant yeah where are you
hiding today yeah yeah I mean it it you
look at books like 1984 and Atlas
Shrugged and you see my gosh how on
Earth could they have seen this coming
you know these were supposed to be
fictional books but they predicted the
future and what we're living through now
I think it's just because to your
earlier Point history repeats or if it
doesn't repeat exactly
I mean I was doing a lot of research
just over the last couple days on World
War I and how World War I started and it
is eerily similar to
what well that was World War II and as
far as their hyperinflation but World
War I was really the the was reparation
World War I that set up I mean that
that's what the was a chain chain R go
keep going but the the Duke get shot
right in uh wherever he was in Slovenia
or something like that uh I can't recall
where he was but basically then you have
the two groups you know Austria and then
the the yeah Austria and Hungary and
then the other group uh you have all of
these larger countries that back one of
the smaller countries that that hate
each other and you know then the world
gets kind of separated into two groups
and then they go to war and you see the
same thing happening today with Russia
you've got large countries that are
siding with them and then you've got
other countries that are siding with the
West so you have two economies
especially Ukraine that that are are
relatively small now they're wildly
important because they provide a lot of
the food and energy for the world that's
for sure I'm not saying they're not
important Ukraine is the Bread Basket to
so many countries throughout the world
yeah right you got natural gas you got
you got potach you got fertilizer you've
got Lumber you got a lot lot of stuff
there in Russia and Ukraine but my point
is you got from from a standpoint of GDP
you've got two countries that are
relatively small compared to the Japan
and the China and the United States but
yet they're in this conflict you know
everyone all these huge countries that
do have uh you know a lot of uh economic
power and huge militaries are picking
sides and it you can see it escalate and
it it's just feels the same obviously I
hope it's not and uh there are no
certainties there only probabilities but
uh the point there is if you look at
history like World War I World War II uh
you know all of these wars uh they they
usually start the same way what an
exciting time huh yeah it is I think it
goes back to that Lenin quote that you
and I have discussed extensively that
where he said there's decades that go by
where nothing happens and then there's
weeks that go by when decades happen
yeah and I think and I I said this is
Vladimir lenon let me clarify there yeah
yeah the beats are pretty profound not
that profound yeah and I think that we
were in 2020 in 2021 I said this on my
channel many times I I used that phrase
to describe what we are going with from
a standpoint of our personal freedoms
and Liberties yep in
2022 I think you've got to look at uh
the economy and you've got to look at
censor
through that lens you've got to go macro
yeah you but you've got to look at it
through that lens of understanding that
we're going through weeks or decades are
going to happen but this has happened
before that's the worst thing as like
like Roger says history proves people
don't learn from history yeah you know
I'm going holy mackel yeah and you know
there's no excuse you were talking about
how people need to educate themselves
and to really re-evaluate their own
personal Network and start hanging out
with people where they're the Dum one in
the room so anyway thank you George than
we keep him the great work my friends
thanks for inviting me always a pleasure
again nice to learn from younger guys
we'll be right
[Music]
back welcome back Rich Dad Radio Show
really old friend or young young old
friend or whatever it is George G lives
left next door here can listen to the
rich radio show anytime anywhere on
iTunes Android on YouTube please leave
us a comment and all of our programs are
archived at Rich Dad right io.com we
archive them for one reason we don't
make any
recommendations you know it's up to you
to decide what you want to do and um the
most important thing is if you have a
friend family member or somebody who
needs to hear the show go to richdad
radio.com and listen to this program
together and then discuss it you know we
talked about High-Tech high touch you
know get to know the people you're
talking to so with that said Sarah final
words for you what you think final words
I thought it was a great conversation
thank you again for your time um it's
always awesome to have you around the
biggest thing that I we kind of miss
them upstair I doo I look at the dark
office I'm like
oh um the interest most thing
interesting thing I'm taking away is the
buy Panic cell
hysteria I mean I feel like we're in a
biggest opportunity of Our Lifetime
right now and that applies to all asset
classes yeah absolutely so I think now
more than ever Financial education is is
important and listening to shows like
this and there's no excuse not to
survive or Thrive during these economic
turmoil times the most exciting time but
if you hang on to Old ideas right and um
Bert dolman said that you know there the
people who are going to get killed are
the buold prey yeah crowd um yeah yeah I
mean he's a big he's he wants to teach
Robert how to sell you know what is it
short short the market or
something that went over well
he wants to you short of Market I want
to learn how to buy a
bar cuz I think drink is going to go up
yeah yeah right anyway so thank you for
your time it was a great show fantastic
final words it's always nice to have
George around it's I said we miss you
here next door you know it's really yeah
it was nice it was really really nice
well it's great to be back and I really
appreciate you guys inviting me on it's
always a pleasure it's always a
fascinating conversation that I I truly
value and every time uh you know we get
to speak it's it's just something that
I'll remember for a long long time so we
always learned something from each other
yeah we do don't we yeah it's changing
so fast okay let's do this yeah so
anyway a lot of magic going on but I
think always remember this the bowl goes
up the stairs and the bear comes out the
window yeah and I think the bear is
about to jump thanks George thank you
and thank you for listening to the Rich
Dad radio
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show
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