This video is a very insightful to me as it educates me about the US economy and how the US dollar is losing its value because of the excessive printing of money. So if supply of US dollar goes up and the demand is constant, the value of the dollar will then fall as its supply as increased.
Go under the cut to find out more about what I have analysed which may be beneficial to you…
Robert Kiyosaki also explained how the middle class population, mainly the baby boomers is going from middle class to poor because they do not have any money left as their money were taken away from them due to many reasons. One example is the 401K Pozzi scheme which actually took some money from working people (at that time, the working people were the baby boomers generation) and the money were pumped into Wall Street for various reasons which I believed is to keep Wall Street from crashing down. Thus, they did not have much savings left for retirement or for investments and they actually lost money when the market shifts.
In addition, I learnt about the 4 things that make middle class people poor and rich people rich.
The 4 things are:
- Taxes
-Taxes make middle class people poor.
-Why does taxes make middle class people poor?
-Middle class people are taxed at very high rates and they have a fixed amount of taxes to pay thus, they do not have flexibility to reduce the taxes legally and after taxation of their salary, the average middle class person do not have much money left thus, investment or other new expenditures is a No No for them as most of their money is sucked from the taxes - Debt
-Why does debt make people poor?
-People who do not know how to leverage well on debts to produce more money or cashflow will end up in more debts and thus, becoming poorer.
-Most of the middle class population without financial education tend to buy so-called ‘assets’ which are actually liabilites . For instance, middle class people buy a house to live in and they believe that it is an asset because the bank says a house is an asset, thus they usually borrow a lot of money to purchase the house. So every month’s interest for the bank loan and mortgage actually increases the total amount of expenditure every month and thus causing them to be poor. - Inflation
-Inflation means the percentage of the increase in the general price of goods.
-How does inflation make people poor?
-With increasing prices of goods, if the salary of the people does not increase by the same percentage or higher than the inflation rate, in actual fact, the buying power of the money they have has actually decreased.
-So without increasing your cashflow, you will not be able to buy as much things as you could before. - Retirement
-So how exactly does retirement make the people poor?
-Lack of financial education will make most middle class people buy investments which they believed would help them when they retire. For instance, insurance is one of them. Some people tend to believe that insurance would be their safe cushion and thus, they would overbuy and if you noticed, insurance fees tend to increase when you retire. So if you have retired and do not have any cashflow, won’t you be just be relying on your lifetime savings to pay for the monthly insurance fees?
That’s how I believe without proper planning for retirement, some people may get poor after retiring or forced to work aftre retiring as they need to earn cash to pay their bills.
And at the end of interview, Robert Kiyosaki shares about some asset protection methods that the average Joe could do which is to purchase Silver as he believe that the supply of Silver would decrease as Silver is used in manufacturing or cell phones, cameras and industrial uses thus, leading to an increase in the price of Silver.
That’s all from what I have picked up from the video…
Very great post here. We should all be investing in silver esp. now when the price is still relatively low. Keep up the good work!
-Kimbundance
Thanks for putting the work and the time into your site. Really enjoyed it. Subscribed