Cash is trash: Robert Kiyosaki’s dire financial warning

A colossal event is looming on the financial horizon: the US dollar will inevitably fail as the world’s reserve currency. According to businessman and bestselling author Robert Kiyosaki, the only question is what will happen next: hyperinflation or hyperdeflation.

In 1971, then US President Richard Nixon turned the dollar into a paper (or “fiat”) currency by separating it from the gold standard. This allowed the Federal Reserve System to print an infinite amount of money, stabilizing the currency.

Fast-forward to today and the Fed is printing trillions of dollars while the stock market continues to trend upwards. But in the shadow banking system, things don’t look so good…

The shadow banking system is an umbrella term for services that fall outside traditional banking regulations – like lenders, brokers, and other credit intermediaries.

In September 2019, some of the biggest banks and hedge funds sought loans from the shadow banking system to stay afloat... resulting in a 10% interest hike. Meanwhile, these same financial institutions dropped interest rates for everyday “mom and pop” customers.

This leads us to a situation where everything above ground seems fine, but beneath the surface – in the shadow banking system – alarm bells are ringing. We have yet to see the consequences of this crisis, according to Kiyosaki, and that puts your money at risk.

Kiyosaki believes the safest storage of wealth lies in gold, silver, and Bitcoin. They cannot be manipulated by the Federal Reserve and central banking system, which he does not trust – and he draws from his own experience to back that argument...

In 1972, while serving as a Marine pilot in Vietnam, Kiyosaki decided to buy some gold. It wasn’t easy but he got a Krugerrand (a South African coin) for $50 and smuggled it home. It’s now worth about $2,000 – and Kiyosaki keeps his gold and silver collection in foreign vaults.

Ask yourself: Why hang on to a volatile currency? Bitcoin is getting harder, the dollar is getting softer, so trusting what can’t be controlled makes more sense. A simple start, says Kiyosaki, is to opt for a relatively affordable American Silver Eagle.

Bottom line: With the Federal Reserve printing trillions of dollars, saving government-issued currency is a loser’s game. Instead, put your trust in “God’s money” (silver and gold) or “people’s money” (Bitcoin, Ethereum) to keep your finances secure.