'Rich Dad, Poor Dad' Asks If US Is Next After Flagging Potential Bankruptcy Of This European Country

Robert Kiyosaki, the author of the book, ‘Rich Dad, Poor Dad,’ flagged the possibility of a European country going under, potentially the first country to earn this dubious distinction.

What Happened: Germany, Europe's largest economy, is staring at the possibility of going bankrupt, Kiyosaki suggested on Friday. "First BANKS. Countries next," the best-selling author tweeted.

"Will Germany be the first country to fail? Go Bankrupt?" he added.

The German economy contracted 0.3% in the three months to March after adjusting its initial estimate of zero growth, data from the Federal Statistical Office showed on Thursday. This followed a revised 0.5% contraction in the final quarter of last year, meeting the definition of a technical recession.

The statistical office attributed the predicament to falling consumer spending as prices remain stubbornly high.

See Also: Best Depression Stocks

US To Follow Suit? Kiyosaki also fired another stark warning of America potentially following in the footsteps of Germany. "Will America default after Germany?" he asked.

First-quarter U.S. GDP data released on Thursday showed the economy growing at an upwardly revised 1.3% rate, propped up by a 3.8% jump in consumer spending. Key macro variables held up well so far.

That said, risks remain, including the banking crisis that claimed the scalps of three mid-tier banks and also the looming debt default.

If the government and the Republicans do not reach a deal on raising the debt ceiling before the June 1 deadline, the Treasury is expected to run out of cash. Treasury Secretary Janet Yellen, President Joe Biden and economists have warned of serious economic repercussions if a deal is not clinched.

Read Next: ‘Rich Dad, Poor Dad’ Author Says ‘People’s Money’ Bitcoin On Its Way To $100K