The Conspiracy They Used to Steal Your Wealth (And They're Doing It Again)

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0:23The banks made billions in 2008 when the economy collapsed. Many have lost everything. And the one thing they're counting on right now is that you still don't understand how they did it. Yes, there's a conspiracy, but it's not what you think. And I'm going to show you before they do it again. This is the Rich Dad Radio Show. the good news and bad news about money. Here's Robert Kiyosaki.

0:54Welcome to the Rich Debt Radio Show, the good and bad about money. This is Robert Kiyosaki, and today is just you and me. And we're talking about what the rich are teaching their kids about money, the rules they don't want you to know. There's a conspiracy, but it's not what you think. The rich aren't trying to keep you poor, the system is. and you're helping them do it. See, most people hear conspiracy of the rich and they think evil billionaires in a room plotting against them. That's not it. The real conspiracy, it's simpler than that. It's financial ignorance by design. And here's the thing.

1:35Once you see how this works, you can't unsee it. Most people never see it. They go their whole lives blaming the wrong people, angry at the wrong enemy, fighting for the wrong things. But there are those who see it, who understand the game, and that's the difference. That's the line. They understand the game. Rich versus poor isn't about money in the bank. It's about what you see and what you've been taught not to see. Let me show you. The real conspiracy isn't some secret society, it's a date, 1971. Most people have no idea what happened in 1971, but that's when everything changed. That's when the rules of money changed forever.

2:26President Nixon, in a two-day meeting, and he made a decision that affects your bank account right now, today. He took the United States off the gold standard. Now stay with me here. This is important. Before 1971, the US dollar was backed by gold, real gold, tangible. You could trade your dollars for actual gold. That meant the dollar had real value. It was tied to something solid. After 1971, it became what they call fiat currency. Fiat, it means by decree, by government say so. The dollar became an IOU, backed by nothing except the full faith and credit of the U.S. government, which really means backed by you, the taxpayer.

3:18Now here's what most people don't understand. Currency, the word itself, it means flow, like a current. It moves. It fluctuates. It's not stable. Money was stable. Currency is not. And that's the switch they made from money to currency, from something solid to something that flows. That changes. That inflates. And people say, well, that doesn't affect me. It does. Every single day. Because what happened after 1971? A massive economic boom. Credit everywhere. Credit cards spreading across the country. people borrowing against their homes, taking out home equity loans like their house was an ATM machine.

4:05Everyone thought they were getting richer, but they weren't. They were getting more currency, which isn't the same thing. And here's what the system counts on. They count on you not knowing the difference between currency and money, between real wealth and the flow of dollars that can disappear overnight. That boom I just mentioned, it led to something else. And this is where it gets uncomfortable because most people think the worst part is what happened to the economy. It's not. The worst part is what the people at the top did when it all fell apart, what they did to you. And I'm going to tell you exactly what that was right after this break.

4:49Don't go anywhere. because once you hear this next part, you are going to be angry and you should be. Welcome back. Now, before the break, I told you about 1971, about fiat currency, about the boom that followed. And I told you the worst part wasn't the boom going bust. The worst part was what the people who built the system did when it collapsed. Here it is. Remember 2008? The housing bubble popped, the economy collapsed, and people lost everything. Their homes, their jobs, their retirement accounts. Many lost everything. And everyone acted shocked. How could this happen? How did no one see this coming?

5:37Except people did see it coming. The banks saw it. The brokers saw it. The people at the top, they knew. Let me explain how this worked. In the mid-2000s, banks were selling mortgages to people who couldn't afford them. Subprime mortgages. High risk. Everyone in the industry knew these people couldn't pay. But they sold them anyway, packaged them up, bundled them with other mortgages, and then – here's the key – they rated them AAA. AAA means safe, low risk, solid investment. But they weren't. They were junk. B-rated bonds mixed in with A-rated bonds all labeled AAA, and people bought them. Investors, retirement funds, pension funds, because they trusted the rating.

6:31Now bonds started defaulting, not just the B bonds, the AAA bonds, the ones that were supposed to be safe. And the banks, they kept saying everything was fine. They kept selling. They kept lying because they were making money, huge money, until it all fell apart. And when it fell apart, when the market crashed and the banks were failing and the entire economy was on the edge of total collapse, the government bailed them out with your money, taxpayer money. The banks that were too big to fail, failed. And you paid for it. Now here's a part that should make you angry. Almost no one went to jail.

7:17The people who committed fraud, who lied about the ratings, who sold garbage investments to pension funds and retirement accounts, they walked away. Some of them with bonuses. And people say, well that's just how it is. The rich take care of the rich. No, that's not it. What happened was this. The banks relied on something. They relied on people not understanding how money works, not understanding bonds, ratings, risk, mortgages. They used complex terms, industry jargon, kept people in the dark, and it worked. Because most people are financially illiterate, not because they're dumb, but because there are never taught.

8:05The school system failed them. Their parents never learn. So how could they teach their kids and the banks, the brokers, the financial planners? They took advantage of that ignorance on purpose. And here's what they're counting on. They're counting on you still not understanding, still trusting them, still handing over your money and hoping they'll make you rich, while they get richer and you stay broke. So why don't people understand money? Simple. They were never taught. School didn't teach you. Your parents didn't teach you because their parents didn't teach them. You might have learned how to balance a checkbook, maybe how to open a savings account, but did anyone teach you how money actually works?

8:54How to use the banking system to your advantage? No. They taught you to save, to get a job, to work hard, to trust the experts. And here's the thing. That advice is designed to keep you poor. I know that sounds harsh, but think about it. Who told you to save your money? Your banker, your financial planner, your teacher. People who either don't understand money themselves or who have a vested interest in you giving them your money. A banker wants you to deposit your money in their bank. Of course they're going to tell you saving is smart. A financial planner wants you to invest in their mutual funds.

9:40Of course they're going to say it's safe. They're salespeople with nice titles. And the biggest lie they ever told you, it's about assets and liabilities. Now, I need you to stay with me here. because what I'm about to explain after the break, this is the one thing, the single concept that separates the rich from everyone else. It sounds simple and people will argue with me when I say it, they get angry. But once you hear it and once you actually understand it, you will look at your house, your car, your 401k, your savings account completely differently. Stay with me, we'll be right back. We're back, before the break I told you I would tell you the biggest lie, assets and liabilities.

10:33Most people think their home is an asset. They were taught that. Buy a house, it's an investment, it's an asset. Wrong! An asset puts money in your pocket. A liability takes money out of your pocket. That's it, that's the definition. Your house, the one you live in, it takes money out of your pocket every single month. Mortgage payment, property taxes, insurance, maintenance, repairs, money out every month. That's not an asset. That's a liability. Now, a rental property that generates cash flow, that's an asset because it puts money in your pocket. But your primary residence, liability. And this is what the banks counted on in 2008.

11:20people believed their homes were assets, so they borrowed against them, treated them like ATM machines, took out home equity loans. Then the market crashed and suddenly those homes were worth less than what people owed. Upside down, underwater, whatever you want to call it, people lost everything because they didn't understand the difference between an asset and a liability and no one taught them by design. See, if you understood assets and liabilities, you'd stop putting your money into things that make you poor. You'd stop trusting the bank to grow your wealth. You'd stop listening to financial planners who are really just salespeople.

12:05You'd start thinking differently, investing differently, building real wealth. And the system doesn't want that. The system wants you're working hard, earning a salary, paying taxes, putting money in a 401k, buying a house with a 30-year mortgage, staying in debt, because that's how they make money off you. And the advice you're following right now, the advice you've been given your whole life, it's making it worse. Let me show you how. Another date that changed everything, 1974. That's when the 401k was born. the defined contribution plan. Before 1974, companies offered pensions, defined benefit plans.

12:53You worked for 30 years, you retired, and the company kept paying you for life. After 1974, that went away. Now you get a 401k. You put your money in, the company maybe matches some of it, and you hope, you pray, that when you're 65, there's enough in that account to last you until you die. You're gambling with your retirement, with your future. And everyone tells you this is smart, this is responsible. Save for retirement, max out your 401k, diversify. But here's what they don't tell you. When you put money in a 401k, you're trusting the market, you're trusting the banks, you're trusting that the economy won't collapse again.

13:41And you're getting taxed twice. once on the deferred income when you take it out, and again on the interest. You saved all that money, and the government takes a huge chunk of it. That's the plan they sold you. Save your money. Trust the system. But saving is losing. Let me say that again. Saving money is a losing strategy. Because remember, what is money? It's currency. It flows. It inflates. it loses value over time. You put$10 ,000 in a savings account today, in 20 years with inflation, that money is worth less, maybe a lot less. The bank isn't protecting you. The bank is using your money. They're lending it out, making money off of it, and giving you, what, half a percent interest?

14:34You're making them rich while your money sits there losing value. And if the economy shifts, If the US dollar loses its status as the world reserve currency, your savings could become worthless or worth a lot less than it is today. The bank can't protect you from that. The government can't protect you from that. But this is what you've been told to do. Save. Diversify. Trust the experts. And here's the problem. That advice keeps you poor. Because while you're saving, the rich are doing something else. They're not saving. They're investing. They're spending. But they're spending smart. They're buying assets, real assets, things that generate cash flow, things that put money in their pockets, not liabilities disguised as assets.

15:24And they're taking control. They're not trusting the market. They're not hoping their 401k grows. They're building wealth, real wealth. So what do the rich do differently? They see money as a tool, not a burden, not something to save and protect and hope it grows, a tool they control. The difference between rich and poor isn't the amount of money in the bank, it's how they think about money. Poor people see money as a burden, something they have to work hard for, trade their time for, and is never enough. Rich people see money as a tool, something they can use, control, make work for them. That's the shift.

16:06And it comes down to understanding assets and liabilities. My poor dad, he worked hard his whole life. Good salary, respectable job. But look at his financial statement. High income, even higher expenses, massive liabilities, his house, his car, credit cards, very few assets. He worked harder, made more money, paid more taxes, and his liabilities ate up everything else. My rich dad? Slightly higher income, but much lower expenses. And here's the key. Lots of assets. Few liabilities. His assets generated cash flow. Money coming in, while his expenses stayed low. That's the difference. Most people work for money.

16:53They earn a salary, pay taxes, then pay their liabilities. Their mortgage, their car payment, their credit card bills and there's nothing left. So they work harder, earn more, pay more taxes, pay more liabilities. It's a trap. Rich people build assets, things that generate income, rental properties, businesses, investments that pay them. The money comes to them. Now here's what people get wrong. They think rich people worship money, that money is everything to them. That's not it. Rich people respect money. They understand it. They give it the attention it deserves. Because like it or not, money is part of life.

17:36You can say money isn't important to me all you want, but you still need it for your family, for your future, for the life you want to live. So stop pretending it doesn't matter. Give money the respect it deserves. Learn how it works. Build your financial IQ. And once you see this, once you understand the difference between assets and liabilities, between working for money and having money work for you, you can't go back. So here's where you are. You now know what most people will never see. You know the system was designed to keep you financially illiterate. You know the difference between money and currency, between assets and liabilities.

18:20You know your house isn't an asset. You know saving is losing. You know the advice you've been following was designed to keep you poor, and you can't unknow that. The question now is simple. What are you going to do with it? You have two choices. Keep thinking like an employee. Trade your time for money. Save your paycheck. Buy liabilities. Hope your 401k grows. Trust the system. Or start thinking like an investor. Build assets. Take control. Learn how money actually works. Stop hoping and start knowing. That's the difference between rich and poor. It's not the money in your account. It's how you think.

19:03Employee mindset versus investor mindset. Job security versus financial freedom. And once you see it, you can't unsee it. Most people stay stuck because they never see it. But you're not most people anymore. That's the difference. Thank you for your time. Thank you for caring about your future. Thank you for understanding that you are the only one who cares about taking care of you. Take care.

19:59Thank you.

20:19Okay