Robert Kiyosaki, the renowned author of Rich Dad Poor Dad, has issued a stark warning regarding the potential for a global financial crash that could stem from Japan’s decision to end its decades-long carry trade strategy. This strategic shift, according to Kiyosaki, threatens to unleash chaos in real estate, stock markets, and employment rates across the globe. In a time where artificial intelligence (AI) is rapidly advancing, Kiyosaki foresees a future where millions could find themselves losing everything, yet stresses that those who prepare wisely have the potential to safeguard and even grow their wealth.
Japan Ends Carry Trade After 30 Years
Japan’s halting of its carry trade—a financial strategy where investors borrow in yen at low interest rates to invest in higher-yielding assets worldwide—signals a major pivot that Kiyosaki believes could trigger what he describes as the largest financial crash in history. As Japan alters its monetary policy, Kiyosaki warns that this could lead to the deflation of inflated global asset prices.
He expressed his concerns on social media, stating, “The Japanese carry trade blew up the assets of the world into the biggest bubble in history.” Kiyosaki highlighted that the unwinding of these trades may already be in motion, a phenomenon he dubbed could reduce global liquidity, adversely affect real estate values, and increase volatility in financial markets. This anticipated crash echoes warnings he made back in his 2013 book Rich Dad’s Prophecy.
Warnings of Rising Unemployment and AI Job Disruption
Kiyosaki has also raised alarms about the impact of technological advancements, particularly AI, on employment. He asserts, “AI will wipe out jobs, and when jobs crash, office and residential real estate will crash.” This sentiment reinforces Kiyosaki’s long-standing belief that the health of real estate markets is directly tied to employment rates. As layoffs become more prevalent, both residential and commercial property demands are likely to decline significantly, leading to widespread depreciation in real estate values.
This warning coincides with ongoing news of layoffs sweeping across various industries, even as stock markets in the U.S. appear to remain robust.
Investment Picks Amid Economic Worries
Kiyosaki has shared a 10-point investment strategy designed to help individuals navigate through economic turbulence and come out ahead. Among his top recommendations is investing in energy assets. He firmly believes that AI will bolster long-term energy demand, particularly in sectors like oil and natural gas, and has personally taken the plunge into these industries through private equity investments.
He encourages investors to explore energy stocks, ETFs, or mutual funds, asserting his intent to prosper regardless of the looming crisis, while acknowledging the grim reality that many may face unemployment.
Gold and silver rank high on his investment list, with Kiyosaki predicting silver prices could soar to $70 in the near future, and possibly $200 by 2026. He also forecasts a staggering price of $27,000 per ounce for gold by 2026, attributing part of that prediction to insights from investor Jim Rickards.
Kiyosaki Recommends Bitcoin and Ethereum
In his investment philosophy, Kiyosaki does not shy away from the cryptocurrency realm. He positions digital assets like Bitcoin and Ethereum as crucial for wealth preservation and potential growth during economic hardships. He confidently predicts Bitcoin might reach $250,000 by 2026, emphasizing Ethereum’s role as a backbone for stablecoins. Despite the inherent volatility in the crypto market, he advocates for these digital currencies as a hedge against the dangers posed by fiat currencies and central bank policies.
Encouraging Preparation Over Fear
While Kiyosaki’s outlook is fraught with caution, he underscores the importance of preparation rather than succumbing to panic. He promotes building a financial safety net and advises against excessive debt exposure. He acknowledges the heartbreaking reality that many will lose their homes and savings, yet offers hope that those who act judiciously today can seize future opportunities. He plans to unveil additional investment strategies in forthcoming discussions.
