Robert Kiyosaki, author of Rich Dad, Poor Dad, has always played the game differently. Known for embracing debt – a lot of debt – he revealed in September 2023 that he's now $1.2 billion in the red.
But don't think he's worried. For Kiyosaki, debt isn't a burden; it's leverage. He proudly declares he's a billionaire because he's in debt. Kiyosaki doesn't see debt as bad for everyone – as long as they know how to manage it. But, in terms of the nation, it's a different story. His perspective sharply critiques how the U.S. economy handles its ballooning debt.
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In an August post on X, Kiyosaki shared:
"HOW MUCH is a trillion? A trillion seconds was 31,688 years ago. America goes a trillion $ in debt every 100 days. Do you know why you must buy gold, silver and Bitcoin?"
The numbers don't lie. According to government data, the U.S. national debt has soared past $36 trillion as of December 2024. That's around $107,990 per person or about $273,548 per household.
And it's growing fast. Between June and November 2024 alone, the U.S. added over $2 trillion in debt, averaging roughly $1 trillion every 100 days – just as Kiyosaki said.
Kiyosaki's solution? Buy hard assets – gold, silver and Bitcoin. He's not just throwing out buzzwords. Each of these has a history of protecting wealth when trust in fiat currency erodes.
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Gold: A Time-Tested Safe Haven
Gold has been the "go-to" during inflation or economic chaos. When paper money loses value, gold tends to shine brighter.
- During the 1970s inflation crisis, gold shot up from $35/oz in 1971 to over $600/oz by 1980.
- In the 2008 financial crash, gold surged over 30% while stocks crumbled.
Today, gold prices sit around $2,652/oz, up 74% in the past five years.
Silver: More Than Just an Inflation Hedge
Silver acts similarly to gold but has added demand from industrial uses – especially in tech and renewable energy.
- In the 1970s, silver jumped from $2.06/oz to $49.45/oz – a 2,300% increase.
- Over the past five years, silver prices climbed about 71%, from $17.90/oz to $30.58/oz.
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Bitcoin: The Wild Card
Dubbed "digital gold," Bitcoin's appeal lies in its finite supply – only 21 million will exist. As governments print more money, Bitcoin's scarcity could make it a strong inflation hedge.
- In 2024, Bitcoin hit all-time highs, boosted by institutional adoption and regulatory clarity.
- Investors like Ray Dalio cautiously acknowledge its potential, though he still leans toward gold for stability.
Kiyosaki's Debt Strategy: Tool, Not Trap
For Kiyosaki, debt isn't a dirty word – it's a tool for building wealth. He uses borrowed money to acquire income-generating assets, like real estate, while letting inflation erode the value of what he owes. Meanwhile, he warns that America's uncontrolled borrowing could leave everyday citizens holding the bag.
His message? Don't rely on fiat currency alone. Diversify into tangible assets and alternatives like gold, silver and Bitcoin to shield yourself from what he sees as inevitable dollar devaluation.
You don't have to agree with Kiyosaki's approach to see the logic in his warning. America's debt problem isn't going anywhere and hard assets could play a role in weathering whatever comes next. Whether you're all-in on gold or just dipping a toe into Bitcoin, Kiyosaki's perspective is clear:
The debt train isn't slowing down – so you'd better prepare.
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