Robert Kiyosaki says that hot inflation will 'wipe out 50% of the US population' — what he means and how to protect yourself

Money Wise ^ | 5/7/22 | Jing Pan

[EBH]

With price levels continuing to spike, the Fed is no longer using the word ‘transitory’ to describe inflation.

U.S. consumer prices jumped 8.5% in March from a year ago, marking the fastest increase since December 1981. That could give the Fed more reason to continue raising interest rates — something that’s already casting a giant shadow over the stock market.

It’s a vicious cycle criticized by many investing veterans. And Rich Dad, Poor Dad author Robert Kiyosaki is one of the latest experts to sound the alarm.

“When inflation goes up, we’re going to wipe out 50% of the U.S. population,” he told Stansberry Research earlier this month.

Consumer crunched Kiyosaki isn’t exactly pleased with the current state of the U.S. economy.

“America has stopped producing products, we produce bubbles,” he says, adding that we now have bubbles in the real estate market, the stock market and the bond market.

The author also criticizes President Joe Biden’s decision to halt the Keystone XL oil pipeline, which he believes is a major reason energy prices are so high.

It also spells trouble for those who want to enjoy their golden years. When the bubbles burst, Kiyosaki says, the stock market will crash. So those relying on their 401(k) plans “are toast.”

“We don’t have a retirement, our pensions are bust.”

[BenLurkin]

Ah, he’s just trying to cheer us up.

[Bernard]

America has stopped producing products, we produce bubbles

I dated a girl named Bubbles. Wonder what happened to her after all these years.....

[SheepWhisperer]

Looking to buy rural land here.
In the event of a coming bubble burst, will land prices plummet?

[lucky american]

He’s right. The only way the government can pay it’s debt is to inflate it away. Print more money. There’s no way we can pay 30 trillion dollars back AND this doesn’t include unfunded liabilities. We don’t make our own drugs. They’re made in China. What will the Americans do without their drugs?

[airborne]

I’ve got an acre with a well, trout stream and backup generator.

I have a stand up full freezer that I’ve been adding to every time I go to the store.

My next investment will probably be pasta, rice, beans and various sauces that can be stored at room temperature.

And a solid investment in the ammo to protect it all.

[Flick Lives]

He’s right. The only way the government can pay it’s debt is to inflate it away. Print more money.

—

It’s like an opioid addict switching from cocaine to fentanyl to fix their addition.

[Leaning Right]

The author makes some good points. “America has stopped producing products, we produce bubbles” ... that’s particularly on-target.

But that headline sure is weird. “Wipe out 50% of the US population” implies that half our population is going to be exterminated. But I guess he really means our retirement plans are going to take a big hit. So I gotta wonder about the author. Is he legit, or is he just peddling fear porn?

[Erik Latranyi]

I dated a girl named Bubbles. Wonder what happened to her after all these years.....

Didn't she have Hunter Biden's baby?

[Brian Griffin]

Stocks will generally correct to realistic levels.

Banks are refusing to pay realistic interest rates.

Buying stocks at realistic prices is typically what I have tried to do in the historically. Unfortunately, my nest egg is now too small to risk in the stock market.

[Flavious_Maximus]

Does she have friends named Blossom and Buttercup?

[Flavious_Maximus]

Notice how they never fear wiping out 50% of those on welfare.

For some reason, the federal government always has money for welfare.

[Brian Griffin]

The Fed can cut rates, or allow rates to rise to market levels.

In a 10% inflation rate environment and a marginal retiree tax rate of say 27%, the interest rate the retiree needs to get to maintain buying power is about 14%.

[Brian Griffin]

I own a house in Florida and have homestead property tax caps.

I hate Florida heat but I will be able to survive.

[Entrepreneur]

So I gotta wonder about the author. Is he legit, or is he just peddling fear porn?

In case you don't see late night TV spots, run a search on "robert kiyosaki silver ad" or for "lear capital robert kiyosaki" and judge for yourself.

[rbg81]

He’s right. The only way the government can pay it’s debt is to inflate it away. Print more money. There’s no way we can pay 30 trillion dollars back AND this doesn’t include unfunded liabilities.

---

First of all, the Government never needs to PAY BACK everything it owes. It probably never will. The only time in my life when we had a surplus, politicians used it as an excuse to increase spending — not pay down the debt.

However, the Government DOES need to pay the interest on that debt. If it fails to do so, it defaults. And if it looks like its getting wobbly, interest rates will go way up almost ensuring a default.

So the big thing is that interest rates have to low enough for the Government to afford its debt. That was easy to do when interest rates were near zero. However, if you see rates on the 10Y UST near even 4%, the US Government has a big problem.

If the Government every has to cut benefits for the Free Sh!t Army, you will see riots that make 2020 look tame. The cities will burn for real.

[Brian Griffin]

Stocks are a way of buying into the future profit streams of corporations.

Those profit streams will often remain significant.

[bert]

preposterous drivel

[DesertRhino]

Wipe out as in financially wipe out.

[BiglyCommentary]

With the types of investment vehicles that are available today, Joe retail investors can go short stocks, bonds, and even real estate. No need to sit in cash or be stuck like a deer in the headlights, getting mauled.