'The Richest Country In The World Is Now Bankrupt' — Robert Kiyosaki Says The U.S. Can't Pay The Interest On Its Debt. Here's How He's Protecting Himself

In a recent episode of "The Rich Dad Radio Show," financial educator and author Robert Kiyosaki expressed grave concerns about the United States’ financial health. 

"America is now bankrupt," he said. "And the question I want to answer today is how [come] America, at one time reportedly the richest country in the world, is now bankrupt?" 

While the U.S. hasn’t legally declared bankruptcy, Kiyosaki's point underscores the nation’s worsening debt crisis.

As of Nov. 24, the U.S. national debt had reached $33.8 trillion. Guest speaker Jim Clark, CEO of Republic Monetary Exchange, highlighted that actual liabilities, including entitlements, could be as high as $200 trillion. 

Fiscal 2023 saw interest payments on this debt rise to $659 billion, marking a 39% increase from the previous year and nearly double the amount in fiscal 2020.

So, how is the famed author protecting his wealth? He's a strong believer in physical assets. Here are two of his favorites.

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Gold and Silver

Kiyosaki, who believes America's financial troubles began with the abandonment of the gold standard in 1971, advocates investing in gold and silver. He views the precious metals as safeguards against inflation and currency devaluation. The rising industrial demand for silver and the current low prices of gold and silver compared to historical highs make them particularly attractive. He also values the fact that physical gold and silver do not carry counterparty risks, unlike many other investments.

Real Estate

Beyond precious metals, Kiyosaki is a proponent of investing in real estate. He recently claimed to own 15,000 houses, which he leverages as an effective hedge against inflation. Historical data from the Federal Reserve Bank of St. Louis shows that while the consumer price index has risen by 896% since 1963, the median sales price of homes has increased by 2,353.93% and rent by 892%. This indicates that real estate not only keeps pace with inflation but can also exceed it.

Kiyosaki's strategy aligns with the opportunities available to average investors through fractional real estate investing. This approach allows individuals to invest in shares of income-producing properties for as little as $100, enabling them to benefit from rental income and long-term appreciation without the traditional barriers of high costs and credit requirements.

Start generating passive income through real estate

Check out these featured investments from Benzinga's Real Estate Offerings Screener.

For investors seeking to protect their wealth in uncertain economic times, Kiyosaki's approach offers valuable insights into diversification and risk management. It's important to understand that his investment strategies may not be the right approach for everyone. You should always do your own research and consult with a qualified financial adviser. 

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