Robert Kiyosaki, author of the personal finance book “Rich Dad Poor Dad,” has identified factors likely to lead to an economic collapse in the future. Notably, with the soaring inflation and increasing interest rates, Kiyosaki has in the past issued a gloomy outlook, warning that a historical crash is on the way as he claims the economy is in ‘the biggest bubble in world history.’
During his latest episode of The Rich Dad Radio Show, published on December 7, Kiyosaki, alongside his guest American author and lawyer Jim Rickards, delved into three main factors likely to sink the economy if not managed well.
Supply chain breakdown
Top on the list was the broken supply chain system which Kiyosaki noted was ‘coming to a head’. According to Rickards, the supply chain is the economy’s foundation that cannot be directed due to the high level of complexity involved.
“The supply chain is not part of the economy. The supply chain is the economy. They’re so broad, so extensive, and so many moving parts that you can model it theoretically, and there’s some math that you can apply, but nobody can comprehend it all,” said Rickards.
Rising inflation
At the same time, Kiyosaki and Rickards pointed out that the supply chain links to the monetary economy that is feeling the heat from soaring inflation.
“And I went to the academy at King’s Point where we were basically told, you know, that supply chain is macro, macro, macro, and if you don’t see the macro, you won’t see the micro,” Kiyosaki said.
Furthermore, the two authors opined that the economic situation might worsen if the current inflation transforms into a depression and contribute to a possible liquidity crisis. Indeed, as reported by Finbold, Kiyosaki warned that the rising inflation would likely wipe out about 50% of the U.S. population.
In this line, Kiyosaki has advocated for the accumulation of precious metals like gold and silver, noting that they are likely to survive the crash. Furthermore, Kiyosaki remains bullish on the prospects of cryptocurrencies, especially Bitcoin (BTC).
Political instability
Finally, the two identified political instability as a significant threat to the economy likely to disrupt the supply chain. In this case, Rickards singled out the U.S. and China’s tussle to control the global economy, a factor that would define the future.
He noted there is a mutual push by both U.S. and China to decouple from one another, an element likely to lead to resilience.
“Who are its partners going to be? Well, they’ll get natural resources from Africa and outsource their manufacturing to South Asia. So life will go on, but it will be much less efficient but more resilient, and that’s the trade-off,” Rickards added.
Overall, Kiyosaki has maintained that signs of an economic collapse are already visible, noting that the stock market, fake cash and bonds are toast.
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