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Time of India
19-05-2025
- Business
- Time of India
$1.6 trillion crisis is coming soon: Rich Dad, Poor Dad writer Robert Kiyosaki warns only these three assets can save you
Robert Kiyosaki, author of Rich Dad Poor Dad, has issued a new warning about a coming financial meltdown. Citing past crises and unresolved root causes dating back to 1971, Kiyosaki said the next crash could be worse than ever — and might hit as soon as 2025. He urged people not to rely on fiat currency or bailouts, but instead to save real assets like gold, silver, and Bitcoin. 'Please take care… bail yourself out,' he warned in a message posted to X. Tired of too many ads? Remove Ads Roots of the problem go back to 1971 Tired of too many ads? Remove Ads 'Savers are losers': Kiyosaki on fiat money Real assets, not ETFs Tired of too many ads? Remove Ads 'The crash has begun' Bestselling author Robert Kiyosaki has sounded the alarm once again, warning of a looming global financial crisis that he believes could strike in a post on X, the Rich Dad Poor Dad writer reflected on the progression of past financial disasters, saying, 'In 1998 Wall Street got together and bailed out a hedge fund LTCM: Long Term Capital Management. In 2008 the central banks got together to bail out Wall Street. In 2025, long time friend, Jim Rickards is asking who is going to bail out the central banks?'Kiyosaki suggested that each successive crisis has become more dangerous because its underlying cause has never been blamed the start of the long-running instability on a decision made more than five decades said the origin of today's monetary fragility began when former US President Richard Nixon removed the US dollar from the gold standard in 1971. According to Kiyosaki, this move decoupled currency from tangible value and introduced a systemic flaw that has only grown longtime friend and economic commentator Jim Rickards has also weighed in. He believes the collapse of the $1.6 trillion student loan debt market could act as the trigger for the next financial years, Kiyosaki has been vocal about what he calls the illusion of safety in traditional savings.'The best way to protect yourself is not by saving fake fiat money,' he wrote, repeating one of his core messages from over two decades ago: 'As I stated over 25 years ago, in Rich Dad Poor Dad, 'The rich don't work for money' and 'Savers are losers.''In his view, financial resilience will not come from government bailouts or stock market-linked urged people to take control of their financial future by turning to real, physical assets.'You bail you and your family out by saving real gold, silver, and Bitcoin. No ETFs,' he said, stressing that exchange-traded funds do not offer the same believes that individual action — not institutional intervention — is the best defence against economic instability Kiyosaki's latest message reiterates warnings he made in his 2012 book Rich Dad's Prophecy, where he predicted a major economic crash. He now says that forecast is coming true.'The crash I warned about in Rich Dad's Prophecy in 2012 has begun,' he wrote. 'Please take care… bail yourself out… by saving real gold, silver, and Bitcoin.'Kiyosaki ended his message with a question that encapsulates his overall warning: 'If Jim Rickards is correct… then who will bail you out?'
Axios
07-05-2025
- Business
- Axios
Why the Asian currency blowup matters
You can't make an omelette without breaking some eggs. And you can't make a new global trading order without breaking a few things in financial markets. The big picture: A stunning surge in the value of the Taiwanese dollar and other Asian currencies over the last week is a vivid example of how the Trump administration's break from a decades-old system of global commerce will cause collateral damage along the way. The world is highly exposed to the U.S. dollar, so a shifting perception of the U.S. role in the world economy could have rapid and unpredictable effects across global markets. The flip side of persistent U.S. trade deficits is that many other countries accumulate massive stockpiles of Treasury bonds and other U.S. assets. To the extent that President Trump is serious about trying to reduce the trade deficit, it implies major disruption to asset markets as well. Exactly how, when, and where that plays out is anybody's guess. We're not aware of anyone who predicted a currency market flare-up driven by Taiwanese life insurance this time last week! Catch up quick: The Taiwanese dollar surged 10% relative to the U.S. dollar between last Thursday and Monday. It has partially receded since, but that's still a much bigger and faster move than is usually seen in currency markets. It reflected the nation's life insurance and pension funds rushing en masse to shift away from U.S.-issued debt and to hedge their exposure to the dollar. Taiwan's huge stockpile of U.S. assets reflects its longtime trade surplus. As it sells semiconductors and other goods to American firms, it must somehow recycle the dollars it earns. The shift came against the backdrop of a steadily weakening dollar over the last month, which made the firms eager to protect against the risk of losses from their dollar-denominated assets falling further. But everyone rushing to the door at the same time made the situation worse. Between the lines: It's not uncommon for moderate economic and policy shifts to be magnified by crowded trades and financial market positions unwinding. The global financial system routinely turns small sparks into big conflagrations. It is worth remembering that, amid volatile trade policy and loose talk about purported "Mar-a-Lago Accords" or other efforts to reset global currency and debt arrangements. Flashback: Following Trump's April 2 tariff announcement, Treasury bonds fell sharply, a move that analysts partly attributed to the unwinding of the "basis trade" — in which hedge funds profit from the gap between Treasury securities and futures contracts tied to those bonds. In the fall of 2022, the U.K. government released a deficit-busting fiscal plan that caused the value of its bonds to fall, exacerbated by pension funds facing a cascade of margin calls and forced selling. A 1998 default on Russian bonds was the key catalyst for the collapse of the massive hedge fund Long Term Capital Management and East Asian currency crises. The bottom line: These first gyrations in currency and asset markets triggered by U.S. policy swings aren't enough to have much impact on the economy. But they're probably not the last.
