This ALWAYS Happens Before A Total Market Collapse | Robert Kiyosaki

The Opportunity of Market Crashes

Kiyosaki openly admits that he thrives during market crashes, viewing them as periods when assets go on sale and financial opportunities abound. Drawing from his experience in places like Zimbabwe—a country ravaged by hyperinflation and currency collapse—he warns listeners to prepare for similar financial upheavals in the United States. According to him, relentless money printing by the Federal Reserve and excessive government debt are certain precursors to a total market crash.

He contrasts traditional monetary systems with precious metals and cryptocurrencies, underscoring their value preservation during inflationary times. While the fiat dollar loses purchasing power, Kiyosaki cites gold, silver, Bitcoin, and Ethereum as assets that appreciate amid economic turmoil. Reflecting on Zimbabwe's descent into a barter economy, he cautions Americans that similar instability could be imminent unless corrective measures are taken. He emphasizes that unlike stock market investments which can become worthless, real assets like oil wells and rental properties offer tangible, ongoing cash flow—and protection against inflation.

Debt, and Money Printing

Throughout the interview, Kiyosaki offers an unorthodox but consistent stance on debt. Contrary to popular advice from figures like Dave Ramsey who advocate living debt-free, Kiyosaki embraces what he calls "good debt"—debt used strategically to acquire cash-flowing assets. He explains that borrowing money, especially when done in one's own currency, effectively creates new money, which fuels economic growth. He argues that the U.S. economy depends on continual borrowing; halting this process would halt the economy itself.

However, he warns that reckless money printing benefits the wealthy while impoverishing the middle class and poor, exacerbating inequality and fueling social issues like homelessness. He labels the Federal Reserve a "criminal organization" operating as a Marxist entity due to its centralized control of money and inflationary practices. This viewpoint sheds light on his skepticism toward typical retirement vehicles like 401(k)s or passive stock investing, which he sees as structured for "losers" who passively accept being outpaced by inflation.

Financial Education

A major theme throughout the discussion is Kiyosaki's disappointment with the American education system. He points to systemic Marxist influence, especially within teachers' unions and curricula, which he believes keeps people ignorant about financial literacy. He recounts how concepts like "your house is not an asset" and "savers are losers" were controversial when he first introduced them but remain critically important today.

Kiyosaki insists that schools fail to teach practical money management, income statements, balance sheets, and cash flow statements—the "language of money." Without this knowledge, individuals cannot effectively deal with bankers or leverage financial instruments. He champions his Rich Dad Poor Dad series and cash flow board game as tools meant to fill this void. The absence of financial education leaves most Americans susceptible to poor decisions in an economy increasingly dependent on debt and inflation.

The Mindset of Wealth

Kiyosaki's journey from a military school dropout to billionaire investor underscores the importance of persistence and embracing failure as part of learning. He shares anecdotes from his time as a US Marine Corps pilot, where crash drills prepared him for real adversity, and applies this principle to investing and entrepreneurship. Failure is inevitable, he argues, but lying about mistakes is the worst error one can make because it halts growth.

He sketches a stark divide between those willing to work hard, learn continuously, and adapt, and the majority who are lazy or unwilling to change mindset. This lens colors his blunt assessment that about 95 to 99 percent of Americans are "lazy" or unwilling to commit the necessary effort to build wealth. He lauds network marketing and Mormon missionaries as examples of groups trained to handle rejection and perseverance—key skills for entrepreneurship.

Investing Strategies

Kiyosaki's preferred investment vehicles are those that generate predictable monthly cash flow and offer tax advantages, such as real estate, oil wells, and billboard advertising. He explains how he leverages 100% debt financing to amplify returns and reduce taxes via depreciation allowances. Unlike the passive stock market investor, Kiyosaki positions himself firmly as an active participant who surrounds himself with trusted advisors like bankers, accountants, and attorneys.

While he respects Bitcoin and Ethereum as financial instruments that protect against fiat currency devaluation, he clarifies that he is not a fan of traditional stocks or index funds, describing them as investments for "losers." His approach is to avoid chasing market noise and instead "always be moving money" into assets that fit his expertise and cash flow goals.

Political and Societal Insights

The interview also delves into the broader political and economic context, whereby Kiyosaki critiques government spending, rising debt, and social welfare systems. He claims that more than 200 million Americans rely on government benefits, a statistic that challenges the sustainability of programs like Social Security, which he believes are bankrupt and will fail future generations.

Furthermore, he discusses the Marxist underpinnings of governmental systems and academia, asserting that many policies and educational norms are designed to maintain control over the populace by keeping them financially uninformed. On a lighter note, Kiyosaki recounts friendships with figures like Donald Trump, Jordan Peterson, and technology entrepreneurs, all of whom influence his views on leadership, strength, and personal responsibility.

Purpose Beyond Money

Closing on a reflective note, Kiyosaki shares a story about his mentor Buckminster Fuller, who challenged him to consider "what does God want done?" rather than simply focusing on getting rich. This question shaped the creation of his financial education materials and informs his mission to bring financial literacy to underserved populations such as Zimbabweans. Despite amassing great wealth, his focus remains on fulfilling this purpose rather than legacy-building for its own sake.

Daily habits of spiritual reflection and lifelong learning maintain his motivation and happiness. For Kiyosaki, money equates to freedom—the freedom to work for causes one loves, to teach, and to continue growing, free from the constraints that limit the average person.