The Collapse No One Is Ready For — Rich Dad's Most Urgent Warnings

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1:15Try today for free at odoo.com. That's O-D-O-O dot com. Over the years, the Rich Dad Radio Show has sparked powerful conversations, challenged conventional wisdom, and revealed the truths about money most people never hear. In this special compilation, we've pulled together some of the most eye-opening, controversial, and unforgettable moments, so you can revisit the lessons that continue to change lives. Get ready for the best of Rich Dad Radio. This is the Rich Dad Radio Show. The good news and bad news about money. here's robert kiyosaki hello hello hello robert kiyosaki the rich dad radio show mark welcome to the show and like i said you're the smartest guys i know when it comes to the exciting new world of electronic money crypto and you know my teacher was a man named dr r book minister fuller and he wrote a book called the critical path but this is his book here called the grunge of giants i don't recommend reading it because it's one of his uh he has a tough read but grunt stands for gross universal cash heist.

2:22That is how our banking system rips off our wealth via our money. So that's why Rich Dad put it and said the rich don't work for money. Your house is not an asset and savers are losers. And Fuller also predicted that there would be a new form of money coming on. He was a futurist. And so Buckminster Fuller talked about gross universal cash heist. He was watching kids playing video games and he says that's the future of money. And then as we know, Bitcoin is now taking the world by storm and everybody's into crypto. You have this guy, Michael Saylor, and you have Tom Lee. And Michael Saylor is using the leverage of Wall Street with a public company.

3:06Yeah. Collect, what's the name of his company? Strategy. It was MicroStrategy and now it's called Strategy. Then you have Tom Lee, who I think is doing kind of a similar thing. Yep. His building block is Ethereum. Yes. Could you explain quickly what, as best you can, what Sailor is up to, how it is as a company, but to leverage it through a stock is shares of his company. Yeah. So there's really two parts to his company. So there's micro strategy, which is now strategy, but the stock is still MSDR. And there's the common stock of that. And what he's done is he's using public debt and equity markets, debt and credit markets to leverage up his Bitcoin position.

3:51So very simply, if I buy one Bitcoin and you buy one Bitcoin, but then I borrow 50 % of my value against my Bitcoin to buy more, I've levered it up. If Bitcoin goes up, I will outperform you because of applied leverage. Same with real estate, right? If I pay cash for real estate versus putting 20 % down, then when real estate goes up, the person that used leverage does better. So what using these public vehicles, he's tapping into public debt and equity markets to raise money at low rates, to buy an asset that's going up at higher rates. and so that was stage one of the company which is hey i'm gonna apply leverage i'm gonna buy bitcoin and when you buy my stock which is the mstr common stock the the amount of bitcoin per share that you own my goal is to get that to go up over time so if you buy it if you buy an etfs one bitcoin's one bitcoin your bitcoin doesn't go up as a matter of fact the bitcoin goes down because of the fees.

4:50But if you want MSDR, the exposure, the Bitcoin per share goes up over time because of the level. So he increases the stock value with that. That's correct. So that was phase one. And what he's done now is changing everything that we know about the world of finance. Wait, wait, wait. Hold on one second. It's like me. I'm an oil and gold guy. Right. I own gold mines. I take them public. So I take the public's money to oil, I mean for oil or for gold. So I have a company in Utah, a gold company. And every time we strike more gold, the share of my company goes up. My exit is kind of through the share price of my company.

5:34The same as my oil company, we borrow money from the open markets, public markets, and we drill for oil. And we make money when we strike oil. is it kind of what's sailors doing it is and but but the turn time is much shorter so for example you borrow money from a public market to go drill for oil and then you'll hit the oil but that could be years potentially in between so what what he's doing is he's borrowing money from the public market and within an hour converting in will get one but but very similar it's tempting it's tempting but the next step is where it gets real interesting so if you think about a bank so i think the two keys that i talk about building wealth wealth um robert is one leverage so how can i use and you call it smart credit right yeah productive cap or productive credit right so one the leverage how can i use some use credit or leverage to buy a productive asset that can pay Pay for the debt plus one.

6:37That's one. And then the second is arbitrage. How do I leverage two markets against each other so I can leverage the credit market against the oil market? So what he's done also is now he's raised money to buy Bitcoin. And now that he has the Bitcoin as a base layer, as an asset, what do I do with it? Well, what he's recognized is while Bitcoin is the best asset to own, in my opinion, it's the cheat code. In the last three years, it's averaged a 60 % compound annual growth rate. This year to date, it's also about 60%. So what he's done is he said, hey, that's great. And it can save a lot of these boomers retirements.

7:19But if you're, say, 78 years old on fixed income, you can't go hold Bitcoin for five years and you can't summit the volatility. I got to pay my bills. I need to pay for my medication, my electricity. So Michael Saylor says this, fine, you give me the money, I'll buy Bitcoin, I'll give you 10 % yield guaranteed, and I'll handle the volatility and take the risk. So he's created what's called preferred instruments, preferred stock. There's four of them. I'll keep it simple, but strike, stride, stride, and the new one is stretch, STRC, you can buy it in your brokerage account. and it's going to pay you 10.5%.

8:02So when you give him money, it's credit. He's going to pay you 10%. He's going to buy Bitcoin and he'll make the 50 % margin. And the beauty of this, Robert, I'll just give you one example. I'll take a break. But when you buy dividend paying stocks, you're buying them based off of the future expectation of cash flow. If I buy an AT &T dividend stock, I hope that AT &T has cash flow in the future. But with AI disrupting everything, what guarantee is that there will be cash flow in the future? The difference that he's doing is when you give him money, he buys the asset. And he's paying a small percentage of revenue off of an asset base.

8:45And today, if he never took in another penny, he could pay the debt obligation for 120 years. So it's the safest type of credit instrument that you can buy, and it pays about double what other assets are paying or credit for you to pay. And the reason I asked Bert on today is because my generation, the boomer generation, were the first generation with what's called the defined contribution pension plan. It's called a 401k or an IRA. So that came out in 1974 with an act called ERISA, Employee Retirement Income Security Act. So in 1974, the baby boomers were the first guys where their, let's say, their retirement was not assured.

9:40See, up until 1974, if you worked for, let's say, Ford Motor Company or Hawaiian Electric and all those things, your retirement was guaranteed. But for the baby boom generation, our retirements are not guaranteed. And I wrote this book here called The Rich Dad's Prophecy, and I was predicting why the biggest stock market crash in history was coming. Now, I'm kind of guessing when I wrote this book, this book was written 10 years ago. But Bert Doman of Doman Capital Research is up to date. His finger is on the pulse every single day. His publication is The Wellington Letter. I suggest you get it to find out what he sees coming because even if markets crash, you can still make a lot of money, but you have to know what you're doing.

10:36So Bert, the reason I want you on again is that I want you to, if you were a baby boomer right now and all you had was a 401k, what would you do welcome Bert well a lot of things but if you're talking about the markets I would be I think education is so important most people really don't spend enough time reading reading is very very important I'm teaching my five grandchildren and they always say If you want to be a leader, you have to be a reader. And that is so true. So if you're not informed, you're starting out on the wrong foot right away. Right now, for example, I make it a habit. When I meet people and they ask me about the markets and say, okay, what do you have in your 401k?

11:37What do you have in your retirement plan? They have no idea. Then I say, well, is it bonds or stocks? I really don't know. I mean, how can people have their life savings in something that they're going to depend on? And they don't even know if they have bonds or stocks or ETFs. I say ETFs and they say, what's an ETF? You know, so I think it's people are not doing their homework. And the markets have become very complicated. And you have to learn. They don't teach you this in school. And that's what I liked in the first book that you had that I read, Rich Dad, Poor Dad. And that schools, maybe they're doing this on purpose, not educating people of what they need to know in life.

12:26I mean, and if you were 70 years old, a baby boomer, and you had no financial education, all you have is a 401k. and you got probably, let's say you're 70, you probably got 20 more years of life left and you lose everything in a crash. I mean, is that possible from your point of view or am I being too pessimistic? You know, I have been warning about exactly that since the beginning of the year. And I even talked about, you know, in the olden days, maybe they've changed the margin rule, but I remember the 87 crash. A lot of people that were on margin, they borrowed against their stock purchases, they lost their houses.

13:10We had dinner. Somebody came here to our town, Redland Shots, and he worked for a major Wall Street firm. He was VP. And he told us how much he was traveling. I said, why do you travel so much? He said, foreclosing houses. I said, foreclosing? I didn't know you were in real estate. He said, we're not. But these are people that couldn't meet their margin calls. So I don't know if that rule has changed, if you can still lose your house because of a margin call. But I would look into it if I were the average speculative. You know, right now, the speculation has gotten so crazy. ETFs, first they came out with double leverage.

13:57Then they came out with triple leverage ETFs. We just had them coming out with five times leveraged ETFs. That means if the stocks in that ETF go down 20%, that ETF is done. It's broke. It has zero value. I mean, do people realize this? No, they don't realize this. I have met people, because we do have consultation calls, and they are short, for example, a triple leveraged ETF. the ETF is short. So you buy the ETF, triple leverage. I said, do you know how fast you can lose all your money with this? You know, even when you take some of the Bitcoin ETFs, it's incredible, you know. Here the ETF, the MSTR strategy has been rising and rising.

14:54It was up, I don't know, something like 10 % for the year. but the ETF that is triple leverage for that was down 36%. So people thought they were going to make three times as much as the stock itself. No. They lost their shirt. That's what happens. People don't know how the math works on these leverages. So, you know, Bert, so we have a highly uneducated baby boom generation. I think it's the largest generation and we have Gen X, Gen Z. You know, I feel for those guys.

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16:37But this is especially important if you have a family member who is a boomer, baby boomer. And I forgot the years they were born between, but there's millions of them. And especially so if they have a pension. And the reason this is important is when I was getting out of the Marine Corps in 1974, they had a thing called ERISA, Employee Retirement Income Security Act. And any time the government says our act is to protect your income, bend over and don't pick up the soap, you know what I mean, because they're going to get you. So my generation in 1974 was the first generation without what they call defined benefit pension.

17:26Defined benefit means you're guaranteed a pension no matter what. When ERISA kicked in in 74, it shifted to defined contribution. And I remember coming out of the Marine Corps, I was looking for a job in Hawaii, a station in Hawaii, my last station I flew out of. And I go to downtown Honolulu, and every school teacher, I go to these meetings about the new, what do you call it, profession called financial planners. I say, you too can be a financial planner. I'm going, oh, let me go check this out. So I go and I sit down in these meetings for people who want to be financial planners because the shift went from defined benefit to defined contribution.

18:14So your contribution would depend upon what this financial planner advised you. Your 401k or IRAs in America, RRSP in Canada, superannuation in Japan, I think. And anyway, stuff like that. So everybody around the world, the boomers, the biggest generation in history, is now at the point where those pensions are due. Very important subject because it's going to affect a lot of people. So there's a friend of mine, Ted Seidel. He's a pension forensics expert. He wrote this book here. It's called Who Has Told My Pension? And so there's a lot of boomers my age who are going to wake up and say, huh, I don't have a pension.

19:03I'm now too old to work. And you're out of time. So that's one of the reasons I founded the Rich Dad Company We have no financial education. And so people, I don't need a pension. You know, I invest for myself. I have what we call a family office. I don't need a financial advisor. I have advisors. But anyway, I was a pilot, and most of my friends became pilots for the airlines. And they're all happy because they had job security, they had pensions. And guess what? Voila, their pensions disappeared. So here they are. They're now about 65 years old, and they have no pension. And so that's why it's kind of personal to my classmates, my fellow pilots.

19:50We flew in the Marine Corps. They were still working, and then they had no pensions. So that's why Ted Siddell and I co-authored this book here, Who Stole My Pension? Because Ted is the number one forensics expert. He goes after the pensions and how they steal your wealth, because they've been a thieves. You know, most financial planners are nice people, but I wouldn't let them lead me to the toilet. I really have no respect for them, because they're going to put me in stocks, bonds, mutual funds, and ETFs. And I don't do those things. You can do what you want. I don't give financial advice, but I'd rather handle my own pension, thank you, my own retirement.

20:32So I retired years ago without a pension. And I did it with real estate. and investments. So, Ted, welcome to the program. It's been nice working with you all these years, but you know that old saying, cheer up, it could get worse. We all cheered up. And a lot of these guys in these pensions, like CalPERS, California personnel and all that stuff, they're smelling the coffee right now, right? Yeah, they certainly are. And I've just been hired a few months ago to do a forensic investigation of CalPERS, which is nearly$600 billion between CalPERS and CalSTRS, which is the state teacher's pension.

21:25You're talking about a trillion dollars. and so if that money is being mismanaged that's like you know a global a sovereign country I mean it's a trillion dollars there in those pensions so I was hired recently to do a forensic investigation of CalPERS on behalf of the state retiree association RPEA and that's what I've been doing for the last few months. It's been in NBC News and on Financial Times and all over the country. They've been even internationally writing about this investigation because CalPERS is the largest. You've also been awarded the biggest reward for taking it to these pension crooks.

22:22I mean, yeah, I've won the largest SEC award whistleblower awards in history, nearly 100 million dollars for the investigations I've done. So I got the largest award from the SEC, then the largest award from the CFTC, and then another one from the SEC. So, yeah, the federal government has confirmed my findings over the years and I've done over a trillion. of these investigations. But anyhow, CalPERS is big news because they are the largest and pensions move in what we call a herd with a herd instinct. So when the leader jumps off a cliff, all the other lemmings jump off as well. So it's really important that the leader be leading and not misleading.

23:16Yeah. Yeah, so what Ted is talking about is called the bellwether, or the cow with the bell in their neck. So whatever CalPERS is doing, the rest of the herd is following close behind. And what you're saying is CalPERS is in trouble? Yeah, CalPERS has been in trouble for the last 25 years. Up until about 2000, Robert, CalPERS was considered the quote-unquote gold standard. You know, all the other pensions looked to them. They were the model for effective governance and transparency. All that started falling apart after 2000. One board member went to prison. Another board member committed suicide before he was being sentenced.

24:07They've just been hit with scandal after scandal, and they're now pretty much a poster child for poor governance. And they've championed things like, you're familiar with, ESG or DEI. A lot of these progressive investment strategies, CalPERS was the originator of. And the herd followed the leader, right? so it's pretty wild um anything you can imagine this is the book here you know if you're young enough please read this book if you're old like over 50 you might be in serious trouble because explain why they were committing suicide with these guys who are the so-called um leaders of these pensions, these teachers and things like that, they were on the take also.

25:09They were kind of commissioned on both sides. The toast was buttered on both sides. Well, the main problem with public fund, public pension plans, like city, county, state public pension plans, are, first of all, they are not governed by ERISA. ERISA, the comprehensive federal law that you talked about earlier that provides important protections for participants. Well, when they created that law in 1974, they made a huge loophole. All state and local pensions are not subject to ERISA. So could you explain how these leaders were stealing from the people they trusted to run the pension? How were they stealing?

25:56What were some of the nefarious tricks they were up to? Well, one of the things your viewers need to understand about public pensions, state and local government pensions, is they're political animals. These funds, these investments, retirement funds, are not being selected, managed, based upon what's the best investment, based upon the best performance or merit. They're political. Hello, Robert Kiyosaki, the Rich Dad Radio Show. Our friend is longtime friend, Doug Casey. Since you and I are now the senior citizens of this generation, how are you prepared for it? I mean, or what would you recommend a person prepare for it?

26:41You know, if you save the dollar, America is printing$2 trillion a year, like Zimbabwe was. Yeah. Now, why would you save the dollar? It's crazy to save the dollar. But you have to save. It's important to produce more than you consume and save the difference. But what do you save it in? You can't save dollars. They're hot potatoes. It's an IOU nothing on the part of a bankrupt government. So I've used gold and silver as savings vehicles. Forever. So I bought my first gold at around$40 an ounce, and I've never sold an ounce. So I still have it all and lots of silver. I hate to advise people to buy gold now because before it was obviously depressed relative to everything else.

27:46Now it seems to me gold is more or less where it should be relative to cars, houses, clothes. I think it could go 10 to 1 from here for different reasons but not because it's underpriced. But you have to save. The problem is what do you save in now? It's a tougher situation than people have ever been in before, I think. I think silver is still relatively underpriced. It's going higher. Yeah. And then what Buffett's been saying, which is a concern that I have, he says the worst thing that's going to hit the boomer generation with their 401ks is inflation. Yeah. Because no matter how much they have in their 401k, and we're spending$2 trillion more than we pull in, they're probably going to be a bob-oil.

28:40Well, that's right. I mean, you buy your average stock, and maybe it's yielding 2 % or 3%, something like that. But the dollar is losing value. You can't believe the government's figures. You can't believe the U.S. government's figures any more than you can believe the Argentine government's figures. the dollar is losing value in real terms in between 5 % and 10 % per year. So what do you do? I know real estate has always treated you extremely well because it's a real asset. But is real estate getting overpriced too? Well, you can always find a bargain. You know what I mean? That's what I like about real estate.

29:23There's somebody always in the sell mode.

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30:27billion people out of eight billion coming off the work line. I'm going, what is that going to do? Well, do they have enough savings to maintain them as their bodies start falling apart? That's what I mean. What goes up are your medical bills. Six days just skyrocket. On the bright side, maybe Elon Musk is right. And in 10 years, robots will be able to do most of what needs doing in the way of physical labor. And it seems like AI is already doing people's thinking for them. But I'm not sure you can trust AI any more than you can trust Wikipedia, quite frankly. Yeah. The other thing I heard is that there's 200 million Americans out of 360 million, almost 50%, 50%, who are on some kind of government subsistence.

31:34I think that's true. And I wonder how many Americans are sleeping under bridges and on park benches. Because you go to major cities and you see them everywhere. The number's got to be, I don't know. the numbers are unreliable. I mean, people want to report numbers for whatever political reasons they have, but there are hundreds of thousands of Americans that have nothing, not even a house, maybe not even a tent. So what's going to happen to those people? I mean, are we going to have to support them as their numbers double and triple and more? Thomas Jefferson warned us years ago, he says, if a central bank takes over, people will wake up homeless in their own country.

32:23And now homelessness is exploding across America. And we have a Federal Reserve Bank that everybody worships. And I'm going, are you kidding me? The Federal Reserve Bank's Marxist. Yes, and they expect that, including Trump, I've got to say, he thinks that if the Federal Reserve just reduces interest rates and prints more money, then everything will be fine. Everything will boom. So he looks at the immediate and direct consequences of printing a lot of money up. Hey, I feel rich. I can go out and buy stuff. But he does not look at the delayed and indirect consequences. The currency becomes nothing.