‘Rich Dad’ Robert Kiyosaki Says the Dollar Is In Trouble: What That Means for Your Money

Angela Mae   Sat, September 16, 2023

It’s common knowledge that the value of the U.S. dollar has fluctuated throughout the years. But now, it seems the dollar could be in serious trouble. This could be especially problematic for people who are trying to save money, or who have most of their assets in cash.

A recent post on Rich Dad, which is part of Robert Kiyosaki’s “Rich Dad Company,” details just why the dollar is in trouble, what this could mean for your money, and what to do about it. Here’s the gist of it.

The Gold Standard

Simply put, the gold standard is a system in which a country ties the value of its physical money directly to gold. While it’s no longer implemented in any country today, the U.S. dollar was tied to the gold standard for many years — all the way until 1933. However, it wasn’t until the early 1970s when Richard Nixon was in office that the U.S. dollar fully went off the gold standard.

Once that happened, the dollar was no longer backed by something substantial — in this case, gold. Instead, it became what Kiyosaki called “fake money” or an “IOU.” It also began to lose its value compared to gold. This is also true for the Euro and Japanese Yen.

It’s no secret that Robert Kiyosaki has continued to invest in both gold and silver. Because these resources exist in a finite amount, their perceived value is higher than that of fiat currencies, like the U.S. dollar.

The Dollar: Inflation and Recession

According to Kiyosaki, the dollar’s purchasing power has diminished by almost 95% since 1996 as a result of inflation. Despite slowing demand, the Federal Reserve continues to print more paper money.

The reason why this is problematic for the value of the dollar is simple. With greater supply and less demand, anything is bound to lose value — the dollar included.

Kiyosaki noted that this particular dollar-related trouble began when Ben Bernanke, the previous Chairman of the Federal Reserve, made a choice to try to combat the Great Recession. Bernanke could have chosen to up the production of paper money, which would lead to increased inflation rates and potentially cause the dollar to collapse. Or he could have increased interest rates to try to slow inflation, which could have led to a recession.

In either case, it spells trouble for the U.S. dollar.

The U.S. Dollar Has Limited Time

Many Americans are caught up in trying to save as much money as possible, especially when dealing with the increased cost of living. But if the dollar is already losing value at an alarming rate, this could be disastrous for anyone who’s relying on it to get them through financially.

And, as Robert Kiyosaki pointed out, the U.S. dollar is already “living on borrowed time.”

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/rich-dad-robert-kiyosaki-says-170008171.html