Rich Dad Poor Dad author Robert Kiyosaki warns investors to prepare for ‘war’
Rich Dad Poor Dad author and owner of over 8,000 properties, Robert Kiyosaki, has warned of impending financial disaster and how Australians can deal with it.
Rich Dad Poor Dad author Robert Kiyosaki has warned that an economic crash worse than the 2008 recession is coming and that Australia’s negative gearing policies are a form of ‘Marxism’.
In an exclusive interview with The The telegraph of the day, the best-selling author said the world is on the verge of a major change and that this disruption will hit the global economy.
He pointed to the rise of China, America’s waning influence and internal divisions, and years of Western governments printing “too much money” as major red flags.
“We live in the time of the greatest change in economic history,” he said. “There is something happening in the world that has never happened before.”
Mr. Kiyosaki explained that China was about to seize American control of the world economy and that this increased the threat of violent conflict.
It also raised the prospect of some form of economic disaster, but he did not say when that would happen or exactly how severe the crash would be, only that it would be “worse” than 2008.
“2008 was the first big crash and a bigger crash is to come,” he said, explaining that, like in 2008, governments around the world were printing too much money.
Mr Kiyosaki, who is believed to own more than 8,000 properties, said the coming financial crisis will present opportunities for savvy property investors.
“I’m pessimistic about a crash…but it’s also the best time to get rich,” he said. “Entrepreneurs will win.”
But Mr Kiyosaki also warned that property prices could plummet when another economic disaster strikes and cautious investors should be prepared to ride out a downturn.
“If you’re counting on a (still) rising property, you could be wrong,” he said, adding that the opportunity for investors would be falling values, followed by a gradual recovery.
“If there is a crash, lots of good deals will be available,” he said.
Mr Kiyosaki was speaking to News Corp Australia ahead of a real estate summit he was to host alongside local investor George Markoski. The free virtual workshop will take place on January 22.
Mr Kiyosaki has dabbled in Australian property, including purchases in Sydney and Brisbane, and said he was challenging some local government policies on taxation.
This included negative gearing. “I don’t like government support,” he said. “I am a capitalist, not a Marxist.
“My concern is that…with negative gearing it monetizes debt and property values are overinflated…it’s not real. It must make economic sense.
Author Rich Dad Poor Dad added that Australian property purchase taxes were excessive.
“I’ve been coming here since 1972. Each time I’ve seen them raise taxes. This makes things more difficult. Australia is worse than California.
He said school education had failed to provide most Australians with the tools they would need to earn money.
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“When I meet most Australians, they are gamblers. They just buy bitcoins hoping to get rich quick. They look at the small picture. What I’m talking about is the marco and the historical picture…we’re on the brink of war right now.
Rich Dad Poor Dad author Robert Kiyosaki will speak at the Masters of Wealth Property Summit on January 22. Registration is free.