April 12, 2020

How the World’s Wealthiest Invest Their Money | Robert Kiyosaki on The Pomp Podcast

Check out The Pomp Podcast Podcast Page

Key Takeaways

• The best teachers are on YouTube, not at universities
• “Be careful what you put in your head and who has got your back” (Choose your teachers and friends wisely)
• There is more opportunity than ever before in the history of the world, its sitting in your hand: Your smartphone
• “The reason I endorse Bitcoin is because is just for one freakin reason: You’re not part of the system, it’s a separation of government and my money” – Robert Kiyosaki

Books and Resources Mentioned

• Robert’s favorite episodes from The Pomp Podcast
  • Caitlin Long on Coronavirus: The pin that popped the credit bubble – Check out the Podcast Notes
  • Raoul Pal calls for potential economic depression – Check out the Podcast Notes
• The Investing classic from 1926: The Richest Man in Babylon by George S. Clason
• In Think and Grow Rich, author Napoleon Hill talks about the philosophy of personal achievement
• In The Road to Ruin and Currency Wars, author Jim Rickards discusses the making of the next financial crisis
  • Robert Kiyosaki and Jim Rickards are co-authoring The Ravens: How to prepare for and profit from the turbulent times ahead, due to come out in May 26,2020
• The Creature from Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin
• Grunch of Giants: Gross Universal Cash Heist, by R. Buckminster Fuller
• Atlas Shrugged, by Ayn Rand

Intro

• Robert Kiyosaki (@theRealKiyosaki) is an American investor, Entrepreneur, and author of Rich Dad Poor Dad
• Host – Anthony “Pomp” Pompliano (@APompliano)

The Educational System is Broken

• The best teachers are on YouTube, not at universities. University professors  care about getting academic tenure, “They are like poor dads”
  • PhDs? Robert defines it as Poor, helpless and desperate
• Going to school makes you fragile. Get out there and do something
• There is no financial education in schools, only financial debt

The Shift Towards the Information Age

• The shift from the agrarian age to the industrial age was visible: “The horse saw the car”
  • On the other hand, old businesses never see the disruption coming from information age startups
• There is more opportunity than ever before in the history of the world, it’s sitting in your hand: Your smartphone
  • “If you can’t make money with that cell phone, you don’t have it”

Corporate Bailouts are Socialism for the Rich

• The great lie of the Federal Reserve: It’s not a bank, it’s not federal, and there is no reserve; It’s a Cartel
• The real crash isn’t in the stock markets, it’s in the shadow banking system (and that’s where all the bail outs are going)
  • Robert sums up the corporate debt bubble: “Those CEOs who are parachuting out right now ripped everyone else borrowing the companies’ money, bought back shares, parachute out with stock options and they pay less taxes”
  • One outcome of this is corporations’ ratings getting downgraded from triple A to triple B (Ford, GM, AT&T, IBM, etc.)
  • Read these Podcast Notes for Raoul Pal explanation of the corporate debt bubble, and these Podcast Notes where Caitlin Long’s illuminates what happens in the shadow banking system
• Pensions are broke because they are stuffed with toxic assets – Namely MBS, CDOs, and CDSs (Which also happen to be US top export)

What Can Individuals Do?

• Framework for thinking: “I can’t change the government, but I can change me”
  • A crisis will happen whether you like it or not. Navigate it correctly and you come out on top
• Robert’s advice:
  • “Be careful what you put in your head and who has got your back” (Choose your teachers and friends wisely)
  • Take the government’s money, buy more silver, gold, and bitcoin
  • Keep in mind: “Pension is not a promise, it’s bullsh*t”

Bitcoin is People’s Money

• “The reason I endorse Bitcoin is because is just for one freakin reason: You’re not part of the system, it’s a separation of government and my money” – Robert Kiyosaki
• We need to have sound money, what Bitcoin has going for it:
  • It’s open source, you can’t mess with it
  • It better suits younger generations
• On a global level people demand dollars when their central banks devalue their currency.
  • Then they realize US dollars are also being devalued, so they demand silver, gold, and bitcoin

Protect Your Civil Liberties

• When people are suffering and desperate, they will accept violations of their rights and civil liberties in exchange for any kind of economic safety net
  • Being politically correct is an attack on free speech, similarly, lock-down is an attack on freedom of assembly
• Robert’s advice: Build wealth, move some of it outside of the system

Closing Thoughts

• “It’s not money that’s corrupt, it’s what you do for money that’s corrupt” – Robert
• Both Anthony and Robert agree “The system is dependent on the majority of population not understanding how money works. Which is super frustrating but that is the model”
• Consider this: $350B bailout for small businesses vs $1.7T student debt “That’s almost 5 times more student debt as we gave small businesses after government mandating they shut down”