The Most Important Financial Lessons You Need Right Now - Robert Kiyosaki

Summary

Robert 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

00:00

🎤 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.

05:01

🏡 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.

10:02

👨‍🏫 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.

15:04

🌟 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.

20:06

🚨 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.

25:08

🔮 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.

30:09

🤔 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.

35:09

😡 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.

40:09

🔎 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.

45:10

💰 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.

Keywords

💡economy

The economy is a central theme throughout the video. The hosts discuss concerns about the global economy hitting major headwinds, a possible recession, high inflation, and other economic troubles. For example, they state "the IMF Davos, Switzerland said the world economy is going to hit the biggest Financial headwind since World War II." The video explores actions listeners can take to protect themselves financially given the uncertain economic outlook.

💡inflation

Inflation refers to the overall increase in prices across an economy. It is mentioned as a worsening problem, with the hosts stating we're seeing "the biggest Global crisis since World War II." Inflation disproportionately hurts the poor and middle class since more of their income goes towards affected goods like food and gas. The video argues wrongly that taxing the rich will solve inflation, when the real solution is increasing production and supply of goods.

💡Federal Reserve (The Fed)

The Federal Reserve, or The Fed, is the central banking system of the US that manages monetary policy. The hosts blame bad Fed policies like low interest rates for inflating asset bubbles, wiping out savings, and pushing investors to make riskier choices. This leads to problems like the crypto crash where inexperienced investors lose everything. The video portrays The Fed as manipulating markets in ways that ultimately hurt average people.

💡cash flow

Cash flow refers to the net amount of cash being generated by investments or assets after accounting for expenses, taxes, and debt payments. It's presented as a key financial concept - George aimed to buy assets generating enough passive cash flow to cover his living expenses so he didn't need to touch his capital. This is held up as an ideal scenario, allowing one to be financially free.

💡financial education

Financial education is promoted throughout as the solution for average people to protect themselves and thrive financially. People suffer due to poor financial education from ineffective mainstream sources like academics or the employee 401k path. Rich Dad's teachings are put forth as countering this propaganda so people can see the financial system clearly.

💡assets

Assets are resources, property or investments that retain or grow in value over time. Protecting one's assets against coming economic instability is a core focus, with hard assets like gold and silver being favored over paper assets like stocks. Assets that generate cash flow are ideal, allowing one to cover living costs without liquidating.

💡Marxism

Marxism refers to the economic and political theories of Karl Marx promoting collective ownership of production and abolition of private property. The hosts strongly criticize Marxism, linking support of higher taxation, more regulation, central banking, and other expansions of government control as advancing a Marxist agenda which threatens personal freedom.

💡centralized planning

Centralized planning refers to an economic model where decisions are made by a centralized authority. The video argues global centralized planning by institutions like the IMF or WHO is expanding, seeking to restrict freedom and control the economy in the name of environmentalism, public health or managing crises. But centralized oversight fails as leaders lack proper incentives and knowledge.

💡free markets

Free markets are where prices and production are determined by supply and demand rather than government control. The hosts advocate free market capitalism as the best system for raising living standards, arguing its competition brings prices down while centralized planning makes goods needlessly expensive or scarce.

💡gold

Gold is highlighted as an inflation-resistant asset that retains purchasing power over millennia. Unlike dollar or crypto, it cannot be manipulated by central bank policies. Gold provides safety amid economic storms when paper investments like stocks crash. The hosts discuss their gold investments not in mining stocks but physical gold mines.

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

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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

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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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