I know, I know, you all say he's just a book salesman. And I agree - that's his profession. But his message is spot-on. Same with his views on the switch from pensions to 401k and the great crash to come. Same with his views that today is NOT a good time to be buying real estate. The guy is a huckster, but his message is the real deal.
Have at it. Play nice.
Today, the United States is perceived to be the richest country in the world. In reality, though, we're the biggest debtor nation in the world. And who are we indebted to? What many consider to be a Third World country: China.
While some people do become richer in this system, funny money actually punishes working people who save money. It devalues the value of your work and your savings, even though you may feel wealthier.
In overly simplistic terms, China and many countries in the world today lend us billions of dollars to buy their goods. They send us products like computers, televisions, cars, candies, and wines, and we send them funny money in return.
Since they can't spend those dollars at home, they simply lend them back to us so we'll buy more of their products. That would be like me going to my local grocery store and asking them for a loan so I could buy their tomatoes. A logical person would say, "That makes no sense." Yet it's exactly what happened after 1971, and to many highly educated people -- bankers and politicians, for instance -- it somehow does make sense.
For now, though, this funny money game continues. How long will it last? I don't know. I do know that throughout history, all paper money has eventually come back to its true value, which is zero. That's when the game truly ends, and a whole new cycle of pass the buck begins.
October 17, 2006
Kiyosaki: The Last Days of the Dollar. Have at it HP'ers
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41 comments:
So China is lending us US $ to buy real products. What exactly are we worried about? I would be worried if I was China.
You should be worried when the lending stops, interest rates skyrocket and the dollar devalues. That's when the fan blades will be covered in it.
Kiyosaki is part of the Trump Traveling Circus that roped in the likes of Casey Serin with the promise of real estate wealth. The "Trump Index" for the price of these seminars is down 80%, from $499 to $99.
Don't delay -- register now! "One weekend can make you a millionaire!"
"interest rates skyrocket and the dollar devalues"
So, real estate is the right place to be... no wonder they all double or triple the last 5 years... the bubble is not in real estate but in USD. Keith got it all wrong... this is the best time to buy a house now before the USD collapses...
Mr. Kiyosaki is a con man. I wouldn't
believe anything he says. What if he's
right? Well, he may be, but even a
stopped clock tells the right time
twice a day. My advice is to get
your financial advice elsewhere.
bullionvault - you buy the gold bars and they're stored for you in London - just down the road!
http://tinyurl.com/yzqqoy
this is the best time to buy a house now before the USD collapses...
Keith has discussed this angle in past threads, and as credit tightened and interest goes up, it is a rock and a hard palce decision.
Just have to find a really FB, imho
Anonymous said...
"interest rates skyrocket and the dollar devalues"
So, real estate is the right place to be... no wonder they all double or triple the last 5 years... the bubble is not in real estate but in USD. Keith got it all wrong... this is the best time to buy a house now before the USD collapses...
Housing Bulls DO NOT GET IT...
If the dollar tanks NECESSITIES inflate! Food, clothing, fuel etc. Purchasing Real Estate will never be a NECESSITY as long as there are rentals. So with stagnant incomes and inflated costs of goods (good ole stagflation) assest prices will deflate rapidly. Check CA property values in the early days of Regan's first term...
Companies have been self-financing sales for decades. Sears-Roebuck was one of the pioneers and helped start the debt driven nation we now are.
Every department store that has it's own credit card is self-financing for sales.
No real insight from Kiyosaki...again.
I believe we will see the dollar collapse, gold confiscated, safety deposit boxes sealed ect.
After all, The jews all but killed the Mark in pre third reich Germany after completely gutting out their industry (hmmmmm what has happened to our industry, hmmmm, who wrote the enabling legislation for all the outsourcing hmmmm,hmmmmm). Actually, world jewry declared war on Germany in 1933 and backrupted the entire nation, it took more weight in German marks to buy a loaf of bread than the loaf of bread weighed. But, Historically this is only one of about eighty instances of the jews doing the exact same thing to a white European nation. Why did'nt all those evil, bigoted anti-semites just hand over all of their nations belongings to the jews anyway? Don't they know that the jews are the self chosen?
SAW THE CHINESE MARTIAN PROBE LAUNCH LAST WEEK, THE BOYS LOOKED LIKE THE PERFECT EMPLOYEE, THAT THE FOUNDER OF IBM WAS LOOKING FOR, AND CREATING IN 1950, COGS IN THE WHEEL, NO INDIVUALITY {MISPELL}, THEM WHO CREATED THOSE TECHNO WONDERS, THAT GOT US WHERE WE ARE TODAY, OR AWAY FROM, ITS METHOD, CITY BOYS/FARMERS, WELL THEY BOUGHT ibm, SOMEWHAT!
READ KIWO, ENTERTAINING!!
Alls I know (as they say in Ohio) is that my dollar is worth shit in Europe. . .when the Euro was launched, one Euro would cost 85 cents, so I got a 15% discount on hotels, food, etc. Now, a Euro cost me about 1.25-1.30 dollars, so we have seen a 40% or better devaluation of the dollar on the world market since 2000. Keith knows that the British Pound is even more expensive. But, since most people just go to Walmart and buy Chinajunk, they really don't care. Actually, since I stashed some cash abroad, I don't care that much anymore either. . .the condo I want to buy in San Diego is getting cheaper by the hour - one of the units I looked at last Christmas has come donw 100K, and it is STILL to expensvie.
www.monex.com 1 oz Gold goes for about $20 over spot. The prices are posted at the site. I have used them many times and have had zero problems. Does anybody have any tips about becoming a Canadian citizen?
Marry a Canadian.
Tommy, I'm not sure I would want to go to Canada.... They convict people of thought crimes up there....Then again, you should be safe.
I don't know why Kiyosaki is so hung up on 1971. The current status quo was put into place in 1913 when the Fed was created. The Fed devalues the dollar so that it can stimulate economic growth. That's its job, it always has been its job, and always will be. 1971 was really not that momentous, it was just a necessary step that had to take place in order for the Fed to continue doing its job. In fairness, while the dollar has obviously suffered, the American economy has done fairly well since 1913. Was that becuase of the Fed or inspite of it, though? That's a little bit tougher of a question to answer.
Oh, and Kiyosaki is a self serving a-hole.
The issuing of fiat currency is just one more way for the government to grab power from people and control them. If it can control the currency, it can inflate when necessary to pay for splendid little wars and other garbage.
Ending legal tender laws would take care of inflation in a heartbeat. Why is it always assumed that the government should issue currency?
It's just sickening.
grandinquisitor,
The dollar was storing less value long before 1971. That's why the Dow was at approx 100 in 1940, then it was at approx 1000 in 1970, and then at approx 10,000 in 2000 (see a pattern?).
De-pegging from gold was just a necessary step to allow the Fed to keep printing and devaluing the dollar, it was not the start of that process by any means. Really not that momentous. The big change that took place was not to the dollar, but rather to gold, which could now be used as an alternative store of value.
Kiyosaki is just spouting off stuff that will help him keep selling books. He's still an a-hole.
1909 (?} T ROOSEVELT, TRUST BUSTER, OLE BULL MOOSE PARTY, 2008 {?} BALL BUSTER, (?)
Why should the level of economic growth be dependent on production of a mineral which is concentrated in Canada, South Africa and Russia, and is highly environmentally toxic as well?
On the gold standard there was lots of deflation between 1870 and 1895 or so and it was horribly devastating to many.
Hear WSJ is reporting today that interest rates to dip below 5% by Jan 07. What happened to the tanking of the USD if the FED lowers again? I thought nothing would stop the housing price decline.
That it is it too little too late?
WTF.
I have been using Camino coin in burlingame, ca (near the san fransico airport) for over 10 years.
never any problems. and burt blumert is an old school libertarian. he supports causes in that area.
for coins, bert is the man.
the hebraic house lender wrote: Tommy, I'm not sure I would want to go to Canada.... They convict people of thought crimes up there....Then again, you should be safe. ........................priceless, on of the best insults I have seen in a loooong time.
we are all going to hell. enjoy the ride. go gold.
Charlie,
In a post apocalyptic scenario, even Gold is useless. Ammunition on the other hand.... Purchase lots of handgun, shotgun and rifle ammo at random. Someone will need it (or think they do) and will barter good protein, veggies and heating oil for it. (2 cents).
the foreign central banks owns us. pretty soon they're going to own our illegals too. hahahaaaa!
Keith,
One of the problems that I have with Kiyosaki is that he keeps speaking without giving any DATES. Well, if I predict like him, and say that stock market will crash, or gold will boom, etc. Given enough time, I will always be right because most things go thru cycles of up and down. A prediction without any dates or timeframe is pretty much useless.
Immigrating to Canada is not that hard. Get out while you still can.
Actually the U.S. went off the gold standard first in 1933.
Actually the U.S. ceased to exist when it went bankrupt in 1933 but nobody seemed to notice.
For the guy who said that paper currency (fiat) never goes to zero, I guess he doesn't remember everybody had to hand in their gold notes (currency) in the 1970s ... my grandfather gave me several but unfortunately my parents confiscated them.
They were worthless after 1971.
> I invite everyone here ...
> to send me all their soon-to-be-worthless
> paper money.
>
> Any takers?
Sure, Peeda, I'll bite... but you have to send me gold or silver at the spot price.
:)
Anon 2:07:13,
Pick up a book sometime, reading can be quite informative.
Anon 2:19:32,
I was a mortgage broker for over five years, I know a thing or two about the market.
I dunno, but that is the effect that he has in my opinion. Intentional or not, I have to wonder. One of us has him pegged though.
paper or plastic?
paper or plastic?
Tabasco and Tommy,
Great analysis boys, Ya really got me figured out, over the internet no less.
Kiyosaki is the best you can do, Keith?
Just because you may agree with him on this issue doesn't mean he knows what he's talking about. I'd sooner take investment advice from a Bolivian jungle snake.
Although I've spent most of my life accumulating dollars, I agree that US currency is in trouble, and probably the overall economy. You all might consider a reasoned conversion from dollars into a mixed portfolio of foreign equities and bonds, real estate, "real stuff" like tools, non-fossil fool – er, excuse me, fuel based machinery, etc., and commodities like gold. This is what I am doing. As far as real estate goes, I just sold the one and only house I've ever owned, after living in it for 17 years, for an absurd profit to a greater fool. I am moving the profits from bubble-land into a small farm in an area of the country that has seen little of the bubble. I believe that certain real estate is worth getting - if it can generate real value, like food, shelter, minerals, power, etc. I have 40% of my portfolio in foreign, and another 25% in metals. The latter I got a few years ago so it has gone up tremendously. The rest is in US large-company stock or remains in handy cash. The companies are ones that produce real goods, like food and utility companies. I don't think a crash is imminent, just inevitable. So there’s time to get your stuff together. Don’t head for the hills – just buy them while you can, and use your head with the rest of your assets.
Oh, PS, I've read one of Kiyosaki's early books - Rich Dad Poor Dad. He has one message that counts, which he now repeats over and over, ad-nauseum. That message is like what I said in my last entry - if you buy real estate, get some that generates income/wealth. Not dumb-a-- bubble appreciation - real, tangible wealth. You can't go wrong tht way, but you may have to wait until late next year or later, when some more air is out of the bubble, to do it smart.
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