Rober Kiyosaki: "Powell is going to channel Volcker? You've got to be kidding me…"

Author of the best-selling book Rich Dad Poor Dad has some doubts as to whether the current Federal Reserve chair can reign in inflation.

As we wrote last week, the Federal Reserve and, more broadly, the Biden Administration are in quite the monetary bind. With inflation running above 8% and federal debt to GDP at 125% (surpassing the previous record in the 1940s), the only options seem to be: recession, default, or more inflation.

It’s not an enviable position to be in. As for which option they’ll choose, world renowned author and radio host Robert Kiyosaki has an idea.

Extrapolating from past precedent, Kiyosaki believes it won’t be long until money printing, aka Quantitative Easing, will continue once again. There is simply too much debt, both public and private, and the stock market is standing on stilts. Otherwise, the Fed would be facing “the biggest crash in world history”, an outcome they’re unlikely to stomach.

This makes the investment thesis pretty simple in Robert’s mind: own real assets. For Robert, “physical assets” take on many forms, from traditional investments like real estate and gold to more exotic ones like oil wells and Wagyu Beef breeding bulls.

Buying assets that the Fed cannot print is the core idea behind the thesis.

However, if Kiyosaki’s long-term thesis is correct, this is bad news for everyday Americans, who are already struggling with soaring gas and food prices. This is compounded with the fact that 89% of US stocks are owned by 10% of the population, meaning 90% may miss out on the asset price appreciation that often accompanies inflation.

Listen to Robert’s full interview to understand his thesis better and see how you might position your investments:

 

Posted In: contributorsGovernmentMarketsInterview

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