This should come as no surprise since he is a gold bug and Bitcoin Maxi. Thus, it makes sense for him to be completely clueless about things, especially the USD.
Nevertheless, the fact that he has been wrong for decades, like most of the "USD collapse" crowd, it doesn't stop him from showing the world how ignorant he is. This is what happens when people let ideology get in the way of how things actually work.
So what did Sir Robert the Fool do now to get my gander going?
We will review it along with the lies he keeps telling.
Buy Gold, Bitcoin, and Silver?
This is the foolishness of his financial advice. He says the USD is toast and because of that, everyone should buy gold, silver, and Bitcoin.
Bye bye US $. Saudi Arabia officially joins BRICS. 1974 US $ became PETRO $. Day after Biden pulled out of Afghanistan, Saudis began negotiations with Russia and China … US $ toast. Buy, gold, silver, bitcoin.
His justification: the petrodollar.
Here is a guy who actually believes in the myth of the Petrodollar. These people believe the strength of the USD comes solely from the fact that oil contracts are written in USD. Hence, if they are written in something else, it is end.
This is wrong and utter nonesense.
How about the Petroyuan? Why not start that and wipe the USD off the face of the international map?
The truth is that already happened, at least the forming of the Petroyuan. The Chinese government set that up in 2018. It is almost 5 years old and the only ones reading these words who are aware of it are ones who saw us mention it a few months back.
Petroyuan[1][2] is a form of the official Chinese currency, the Yuan intended at least initially for oil trading.[3] On March 26, 2018, the Chinese government issued the first long term oil trading contracts denominated in Petroyuans
There it is hidden in a Wikipedia page. It seems this is too much research for the esteemed Kiyosaki.
He also believes that commodity backed money is the only real money. At least he didnt use the term "God's Money" like he did in the past when referring to Bitcoin.
Of course, this is the same fool who said to buy gold, silver and Bitcoin because we were going to see massive inflation.
Well, we had prints on the CPI that were not seen in 40+ years and gold, silver, and Bitcoin (especially) did not take off. What gives?
The answer is these people are selling a load of crap. There lack of understanding of the monetary system screams ignorance.
What It Takes To Be A Reserve Currency
The Peterodollar is a myth because it takes a lot more than just being tied to a commodity. In reality, we are dealing with a highly complex system of banks, traders, countries, and markets that are far too complicated for a simpleton like Kiyosaki. His Rich Dad Poor Dad series was outstanding for the basics of personal finance. However, it is evident that he isnt not more advanced than his books.
For a currency to operate globally, it must be:
- liquid
- have depth
- be sophisticated
- widely distributed
There is on currency that has that: the USD.
Not even the EURO, which is the second largest currency, even comes close. That is nothing more than a regional currency that is used as a backup to the USD.
Let us look at a few other numbers:
- 88% of the FOREX pairs are to the USD
- the $5 trillion overnight Repo market is all USD
- US Treasuries (future dollars) are the world's only pristine and high quality collateral for international banking
- Nearly half the $300 trillion global debt denominated in USD
- A net $10 trillion in capital flow into US assets since the beginning of 2018
- Almost 3/4 the derivatives markets are denominated in USD (estimated a quadrillion dollars)
We could go on but you get the point.
The reality is that banks offer the best rates on USD denominated debt because they know they can hedge by selling it to Wall Street. Pension and hedge funds will not touch debt written outside the USD.
Basically it is foolish to think the USD is going away. A simple understanding of supply and demand. Throughout the entire monetary system, we see a massive demand for USD (and its assets), at a time when there is a shortage of it.
But then, Kiyosaki actually believes the Fed prints dollars.
You would think he would do a few web searches to figure out how things work. Yet, if he did that, it would ruin his ideological stance.
People like Kiyosaky are dangerous. They espouse these ideas that are based in fallacy and people listen. That causes them to lose money since they figure these people know what they are talking about.
It is time to start calling these people out.
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