In a recent episode on “The Rich Dad Radio Show,” financial educator and author Robert Kiyosaki expressed serious concerns about the financial health of the United States.
“America is now bankrupt,” he said. “And the question I want to answer today is why is America, once considered the richest country in the world, now bankrupt?”
Although the United States has not legally declared bankruptcy, Kiyosaki’s view highlights the country’s deepening debt crisis.
Since November 24, the US national debt had reached 33.8 trillion dollars. Guest speaker Jim Clark, CEO of Republic Monetary Exchange, noted that actual debts, including duties, could reach $200 trillion.
In fiscal 2023, interest payments on this debt reached $659 billion, an increase of 39% from the previous year and nearly double the amount in fiscal 2020.
So how does the famous author protect his wealth? He strongly believes in physical assets. Here are two of his favorites.
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Gold and silver
Kiyosaki, who believes that America’s financial woes began with the abandonment of the gold standard in 1971, advocates investing in gold and silver. He views precious metals as safeguards against inflation and currency devaluation. Growing industrial demand for silver and current low gold and silver prices relative to historic highs make them particularly attractive. He also likes the fact that physical gold and silver do not carry counterparty risk, 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 uses as an effective hedge against inflation. Historical data from the Federal Reserve Bank of St. Louis shows that even though the consumer price index has increased by 896% since 1963, the median home sales price increased by 2,353.93% and to rent out by 892%. This indicates that real estate is not only keeping 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-generating properties for as little as $100allowing them to benefit from rental income and long-term appreciation without the traditional barriers of high costs and credit requirements.
For investors looking to protect their wealth in uncertain economic times, Kiyosaki’s approach offers valuable insights into diversification and risk management. It is important to understand that its investment strategies may not be suitable for everyone. You should always do your own research and consult a qualified financial advisor.
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This item “The richest country in the world is now bankrupt” — Robert Kiyosaki says the United States cannot pay the interest on its debt. This is how he protects himself originally appeared on Benzinga.com
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