Robert Kiyosaki, famed author of the New York Times bestseller “Rich Dad, Poor Dad,” has an interesting point of view.
He believes that fiat currencies, and even crypto currencies, will not be here in the future. We all naturally believe this.
However, Blockchain will be around and it will target the Dollar and all other fiat currencies for destruction.
“On cryptocurrencies, the best-selling author said that while bitcoin may not last forever, blockchain could still be around.
“Blockchain is going after the dollar, fiat currency. The real threat to fiat currency is blockchain,” he said.”
That’s music to Gold’s ears!
CIGA Wolfgang Rech
Don’t Call “Rich Dad’s” Kiyosaki A Gold Investor – It’s More Than That
October 26, 2018
(RERUN) – Robert Kiyosaki, famed author of the New York Times bestseller “Rich Dad, Poor Dad,” does not consider gold an “investment,” but rather, the only form of currency he considers “real.”
His new book, “FAKE: Fake Money, Fake Teachers, Fake Assets,” due for release in April, 2019, documents the difference between real and fake assets, and he likens gold to “God’s money,” a tribute to the yellow metal’s origins as a naturally occurring element.
“Long after you and I are gone and all that’s left is God, I promise you, the dollar will not be here, the yen will not be here, the euro will not be here…I doubt crypto will be here if everything else is gone, but anyway, I’d rather have God’s money than man’s money,” Kiyosaki told Kitco News.
Kiyosaki noted that there is no scenario in which he would abandon his holdings on gold.
How many times have we discussed just this?
Something everyone should think about….now!
I’ll bet my bottom dollar most people are totally unaware of the correlation of actual money in circulation and the amount of debt issued.
“We have often said that our current economic environment is much more sensitive to changes in interest rates because of the growth in debt outstanding since the financial crisis and the recent emergence from the ultra-low interest rate period that crisis produced.”
Makes sense. If I’m not mistaken, then this is no different than an equity investor who buys stocks on margin. He becomes much more sensitive (at risk) if the stocks fall in price.
“Furthermore, because of the difference between the amount of debt outstanding and the actual currency in the economic system, most of that debt represents leverage.”
Now this is the real killer. If there’s only X amount of cash in the system, then all borrowings beyond that level of cash represent leverage (margin)!
That is scary.
Higher Rates Are Crushing Investors
October 26, 2018
Authored by Michael Lebowitz via RealInvestmentAdvice.com,
There is an old saying that proclaims, “it’s not the size of the ship, but the motion of the ocean.” Since this is a family-friendly publication, we will leave it at that. However, the saying has a connotation that is pertinent to the bond market today. Much of the media’s focus on the recent surge in yields has been on the absolute increase in numerical terms. The increase in rates and yields, while important, fails to consider the bigger forces that can inflict pain on bond holders, or sink the ship. When losses accumulate and fear of further losses mount, volatility and other instabilities can arise in the bond market and bleed to other markets, as we are now beginning to see in the equity markets.
Since 1983, fixed-income investors have been able to put their portfolios on autopilot, clip coupons and watch prices rise and yields steadily fall. Despite a few bumps on this long path, which we will detail, yields, have declined gradually from the mid-teens to the low single digits.
In this piece, we discuss the effect that higher yields are having on debt investors today and compare it to prior temporary increases in yield. It is from the view of debt investors that we can better appreciate that the “motion” is much bigger today than years past.