
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”