Robert Kiyosaki Says Debt Ceiling Deadlock Like Japanese Kabuki Theater, Calls Impasse A 'Bad Comedy'

Zinger Key Points
  • Kiyosaki continued to assert his bull case for gold, silver and Bitcoin.
  • Spot gold has dropped below the $2,000 per ounce level in recent weeks while Bitcoin is down over 7% in last one month.
  • Despite early optimism about a potential debt ceiling deal, Wall Street has begun showing signs of suspicion.

Rich Dad, Poor Dad” author Robert Kiyosaki has likened the ongoing debt ceiling deadlock to the Japanese Kabuki theater while saying the whole thing is “a bad comedy.”

Kabuki is a form of theater that couples dramatic performances and traditional dance. Kiyosaki could be referring to this drama when he compared the theater with the debt limit impasse, given how politicians are dragging the issue to the wire. With just days left for the X-date, the point in early June when the government is believed to run out of options to fund itself, both negotiating sides continue to use polished words like "progress" and "agreement" without actually reaching a consensus.

Also Read: How to Buy Bitcoin (BTC)

Despite early optimism, even Wall Street has begun showing signs of suspicion as major indices continued their downward trend for the second day in a row. The SPDR S&P 500 ETF Trust SPY closed 0.72% lower on Wednesday while the Invesco QQQ Trust Series 1 QQQ shed 0.51%.

The bond market, too, has signaled frustration over the continuing impasse. Yields on treasuries that are set to mature on June 1 and June 6 topped 7% at one point on Wednesday, which is close to 4 percentage points above the yields on instruments maturing May 30.

And if that wasn't enough, ratings agency Fitch placed the country's ‘AAA' rating on Negative Watch.

The coming days will be crucial for financial markets around the world. Although widespread optimism about a resolution still exists among a large section of investors, the possibility of default couldn't be completely ruled out given how, day after day, both negotiating sides have displayed their inability to come to a consensus.

Kiyosaki's Take: In addition to his criticism about the US' finances, Kiyosaki continued to assert his bull case for gold, silver and Bitcoin BTC/USD. Although spot gold has dropped below the $2,000 per ounce level in recent weeks, its safe haven status is still a big appeal among investors, many of whom are getting jittery over Washington's indecisive politics.

Bitcoin, on the other hand, is down over 7% in the last month and future trends will depend a lot on the Federal Reserve's policy path and treasury yield movements.

Read Next: Jim Cramer Warns Politicians ‘Aren’t Done Hurting You’ On Debt Ceiling: ‘Most Of Us Need To Take The Pain’

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Posted In: NewsEconomicsdebt ceiling crisisRich Dad Poor DadRobert KiyosakiWall Street
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