Robert Kiyosaki’s Warning: Withdraw Cash from Banks Before Economic Collapse
Renowned finance author Robert Kiyosaki, known for his book “Rich Dad Poor Dad,” recently issued a cautionary message to his followers. He advised them to take out some cash from banks due to the potential of an unprecedented economic crash. Kiyosaki expressed concern that this could be the beginning of the largest crash in history and urged people not to gamble with their lives.
Bank Credit Decline Raises Alarms
Kiyosaki highlighted the significant decline in bank credit, which dropped by 2% from its peak this year. This type of decline is rare and typically occurs during times of economic turmoil. Barchart data revealed that similar declines in bank credit occurred during the dot com bubble in 2001 and after the global financial crisis in 2009.
The Impact of Recent Events
Credit has been steadily increasing since the start of the Covid-19 pandemic, but it experienced a setback during the banking crisis in March 2023 when several crypto-supportive banks failed. This led to approximately $260 billion in credit being removed from the system. The recent surge in credit was largely driven by banks selling securities to raise cash.
Kiyosaki’s Predictions and Investment Advice
Kiyosaki has a history of making doomsday predictions, including his recent forecast that the US dollar will collapse and Bitcoin will reach $120,000 by 2024. He frequently advises his followers to invest in assets like silver, gold, and Bitcoin as protection against inflation and the unstable banking system. His book emphasizes accumulating debt to purchase appreciating assets rather than relying on saving in dollars.
Hot Take: Proceed with Caution
While Robert Kiyosaki’s warning may raise concerns, it is important to approach these predictions with caution. Economic crashes are complex events influenced by various factors, and it is difficult to accurately predict their timing and magnitude. It is always advisable to stay informed about the state of the economy and make informed financial decisions based on your individual circumstances and risk tolerance.
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