'Rich Dad Poor Dad' author predicts global economic crash soon
What's the story
Robert Kiyosaki, the famous author of Rich Dad Poor Dad, has warned of an impending global economic crash. In a recent X post, he wrote, "Europe, China, USA going down. Depression ahead?" He further advised his followers to "hang on to your job and your money," hinting at major financial challenges for these regions.
Criticism
Kiyosaki criticizes leaders, educators for lack of financial literacy
Kiyosaki also criticized international leaders and the education system for failing to promote financial literacy. He asked, "What did school teach you about money?" He implied that no matter which way the economy goes, assets like gold, silver, and Bitcoin will hold their value. The statement emphasizes his belief in the need to know how to manage money in the face of economic uncertainties.
Wealth creation
Economic downturns as opportunities for wealth creation
Despite his warning, Kiyosaki emphasized that economic downturns can provide opportunities to build wealth. He said, "For many people, crashes are the best times to get rich." However, it is worth noting that Kiyosaki's record on market crash predictions isn't perfect. A US News & World Report analysis found that he has made 11 wrong market crash predictions between 2011 and 2024.
Economic outlook
Mixed economic indicators and global uncertainties
The latest economic indicators paint a mixed picture. Fidelity's Q4 2024 update indicates that the US economy is in a late-cycle phase with decelerating growth, indicating a possible market correction. Meanwhile, third-quarter data from the US suggests an annualized growth rate of 3.1%, revised upward from the initially reported 2.8%. Global uncertainties continue to loom with possible risks such as trade wars, fresh inflation, global slowdown or rising unemployment rates due to policy changes on US import tariffs.
European scenario
Europe's economic outlook amid political challenges
In Europe, Christine Lagarde, President of the European Central Bank, has highlighted an "abundance" of uncertainty as we near 2025. This is owing to political challenges in Germany and France, the ongoing war in Ukraine, and doubts over China's economic stability. These elements make for a complicated global economic scenario with experts split over future forecasts.