Author of 'Rich Dad Poor Dad' warns: 'They are playing with money'
The author of 'Rich Dad Poor Dad' warns about the widening wealth gap and claims that the financial system operates against economic logic: 'Technology is supposed to lower prices, but they are playing with money.' These are the assets he recommends to protect savings.
Every technological breakthrough promises to make life easier, but the cost of living continues to weigh heavily. Robert Kiyosaki, author of the bestseller 'Rich Dad Poor Dad', warns that this situation indicates a deep failure in the financial system. In an episode of his show 'The Rich Dad Radio Show', Kiyosaki argued that the widening gap between the rich and the poor has become dangerous, adding:
'Inflation is skyrocketing - whether by pure intent or by incompetence.'
During the show, Kiyosaki spoke with Jeff Booth, author of the book 'The Price of Tomorrow', who explained that innovation and technology - including artificial intelligence and automation - should allow for producing more for less money and lead to lower prices. Booth noted that the natural state of the free market is deflation, and illustrated this using the smartphone that replaced many separate products. According to them, governments and central banks are fighting this trend by increasing debts and maintaining a system that depends on rising prices. Kiyosaki concluded sharply:
'Prices are supposed to go down, but they are rising only because they are playing games with money.'
While the US central bank sets a long-term inflation target of 2%, the country's consumer price index recorded an increase of 3.4% in the 12 months ending in July. Energy prices jumped by 14.7%, food rose by 3%, and housing costs climbed by 3.2%. At the same time, the US federal debt reached an astronomical amount of about 39.93 trillion dollars in mid-August.
Against the backdrop of eroding purchasing power, Kiyosaki recommends focusing on tangible and rare assets. First and foremost is gold, as central banks cannot increase its supply, and it serves as a shelter during times of economic pressure. Alongside this, Kiyosaki mentions investing in income-generating residential real estate that produces passive income from rent, as well as investing in agricultural land that allows for profit from food production and land improvement. It is also recommended to seek professional financial advice to build a customized protection plan.
