The following article is the opinion of the author only and does not reflect the opinion of Conservative Musings or anyone associated with the blog. It is presented only as information and should not be used to make any financial or other decisions. Competent legal, financial and other advice should be obtained prior to making any financial decisions.
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ROBERT KIYOSAKI WARNS 2016 JUBILEE YEAR COLLAPSE IS GOING TO MAKE A LOT OF POOR DADS
Already in Jubilee 2016, we’ve seen incredible volatility. Brexit is just one example. Within a matter of minutes the British pound soared (when Bremain had the early lead in results) and then had its worst crash in history a few minutes later. The British stock market fell 5.6% quickly after Brexit and has now moved up dramatically in the last week.
Volatility in the markets is just like volatility in real life. Your car rides fine for thousands of miles and then, suddenly,begins to shake madly: A wheel is in danger of falling off, and if you don’t stop quick enough it ends up in a crash.
Or someone could appear to be well adjusted and stable but then begins to act erratically. This is usually a sign that the person is about to have a major problem.
It is the same in the markets. Volatility is a sign that something is wrong.
Central banks are printing torrents of money, despite the usual rhetoric about tightening. Governments are trillions of dollars in debt, including some $11.7 trillion (up from $3.6 trillion in early 2015) under negative interest rates, which in and of itself shows the system is broken. And a top BIS official, William White, has publicly stated that this will result in a massive washing away, where people find out things they thought had value, didn’t, which he termed a debt jubilee.
And now three more established names have warned of the same.
Robert Kiyosaki, who wrote ‘Rich Dad, Poor Dad’, a great book about how to become wealthy is now warning that many people are about to become Poor Dads unless they prepare now.
Kiyosaki just wrote a blog about Brexit volatility, in which he warned starkly, “Welcome to an uncharted future.” And then this:
In my opinion, the only known fact is that this will create an increase in volatility. … The economy is a global force. To be unaware of its movements is to be gambling with your future no matter what business you are in. Brexit is a huge action in this global power that needs to be taken into account. To survive the effects of the global economy one must be able to predict the future.
In fact, Kiyosaki has been predicting a specific future since 2002, when he first perceived a market collapse in 2016. He stated that 2016 would be the year of the worst crash in modern, recorded history. And he’s made it clear he believes that this slow-motion crash is well underway.
His prediction of a market crash is not based on 2016 investment action but on demographics. Baby boomers, he warned back in 2002, would reach 70-plus in 2016 and start removing, by law, distributions from their IRAs.
Demography is destiny, he emphasized in a recent interview, pointing out that the markets would ultimately be attacked by 76 million baby boomers. Bad enough that baby boomers are starting to withdraw their savings. Even worse is that there’s no place to put them. Interest rates are near zero and stock markets are at historical nominal highs.
Kiyosaki is also worried about China, which he says has propped up the US economy by importing all sorts of goods and services. “When [China] stops importing, the world crashes with them.” He claims that the 20-year-old Chinese industrial bubble is in fact collapsing – or continuing to collapse.
While internet sites raise the issue of an enormous crash, the larger media does not provide much in the way of warnings. Billionaire Carl Icahn, for example, declared, “The public is walking into a trap again as they did in 2007.” And famous economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.” Smithers reportedly believes other analogous periods are 1929 and 1999 – when stocks dropped by 89% and 50%.
Then there’s economist James Dale Davidson who called both the 1999 and 2007 collapses. This time, Davidson is calling for at least a 50%-70% correction. Davidson believes a confluence of factor are going to drive down the markets catastrophically – including the demographic reality that Kiyosaki foresaw. This set of economic voices merely adds to the chorus already warning us to prepare for the worst.
What’s happened in 2016 is but a foreshadowing of what’s yet to come. If you’ve been reading these blogs regularly, you already know that we’re prepared for almost any kind of financial calamity and have faced 2016 with an investment strategy that has advanced our TDV portfolio by some 130%+.
The chorus of savvy investors, economists and billionaire businessmen warning of what’s to come in the second half of 2016 is truly astonishing. Of course, we’re not surprised because our Shemitah and Jubilee analysis predicted all of this. And it provides us with further understanding of worse to come, especially up to and including October when the Jubilee year climaxes.
At some point your warnings will cease and catastrophe explodes. That time is coming soon. I’d urge you to act to protect yourself: Remain liquid, hold gold and silver in physical form and find information sources that can provide timely insights into what is happening – and when and how.
You don’t have to end up as a Poor Dad through all of this… in fact, you could end up as the Rich Dad if you prepare for and profit through it all.
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Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences including his own, the world's largest anarcho-capitalist conference, Anarchapulco, as well as regularly in the media including CNBC, CNN and Fox Business.
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