Renowned investor and author of ‘Rich Dad, Poor Dad’ Robert Kiyosaki took to X, formerly known as Twitter, to comment on the recent downgrade of the U.S. credit rating by Fitch Ratings from AAA to AA+. Kiyosaki warned his followers to brace for a potential economic crash.
What Happened: Kiyosaki criticized the Federal Reserve, the Treasury, and major corporate CEOs, accusing them of being out of touch with reality.
“First shoe to drop. Fitch rating services downgrades US credit rating from AAA to AA+. Brace for crash landing. Sorry for the bad news yet I have been warning for over a year the Fed, Treasury, big corp CEOs have smoking fantasy weed. Take care,” Kiyosaki tweeted.
See Also: Yellen Rebukes Fitch’s ‘Unwarranted’ Downgrade Of US Credit Rating; Treasuries Hit 9-Month Low
Why It Matters: The downgrade by Fitch Ratings is attributed to several factors, including expected fiscal deterioration over the next three years, a high and growing general government debt burden, and erosion of governance.
The downgrade could potentially lead to tighter credit conditions, weakening business investment, and a slowdown in consumption, pushing the U.S. economy into a mild recession.
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