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- Kiyosaki urges followers to buy Gold, silver and Bitcoin, again.
- He has been warning of an economic downturn for a long time.
Kiyosaki’s investment advice
Kiyosaki encouraged his twitter followers to invest in precious metals – Gold and Silver – and Bitcoin. Citing an article by Forbes, he reasoned that pension funds were investing in the same, and so should others. The Forbes article discussed a research study by CFA institute, 94% of state and local pension funds had invested in cryptocurrencies.
He mentioned that the Bank of England’s recent move to raise interest rates meant you should invest in “GSBC” (acronym for Gold, Silver, and Bitcoin). He argued: the fact that pension funds were about to collapse ‘exposed’ that central banks could not fight inflation.
Kiyosaki claimed that Pension funds had historically invested in Gold and Silver and were now investing in cryptocurrency. Notably, American investment baron Warren Bufett has called cryptocurrencies devoid of any value and unproductive.
Bearish market and looming recession
Multiple economic indicators – rising energy prices, record inflation levels in both developing and developed countries – indicate severe financial downturn. The popular thought regarding a recession is that when and not whether it will happen is the question to be asked.
According to Bloomberg, around 90 countries have upped interest rates, making borrowing more expensive, in a bid to control inflation. A senior IMF official stated last week that the growth forecast will be lowered from the present 2.9%.
Monetary tightening by the Federal Reserve of the US, is hurting economies around the world. According to the UN’s Conference on Trade and Development (UNCTAD), US interest rate hikes will reduce the future income estimates of developing countries by $360 billion.
Bitcoin price has not crossed the $20,000, since the beginning of this year and it looks like stock market volatility is here to stay. Added to all the above is the pandemic and its effects; adverse natural calamities caused by climate change; and a full-blown war, which is the largest ground based war since WW2.
‘Rich Dad Poor Dad’ author’s financial downturn warning
Kiyosaki has warned of an impending downturn in the past, based on projections by institutions like the International Monetary Fund (IMF).
The co-author of the best selling investment guide had warned of a financial downturn in May, via twitter. In that warning also, he urged his followers to stash precious metals, Bitcoin, food, and even ‘guns and bullets.’
He has criticized US fiscal and monetary policies as restrictive; and argued that Bitcoin would ‘win’ despite such policies. Kiyosaki declared that he would buy Bitcoin when its price crashes as crashes are the ‘best times to get rich.’
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
