American businessman Robert Kiyosaki struck an optimistic note on Tuesday after Moody’s downgraded the US government’s credit rating. The agency had cited the government’s $36 trillion outstanding debt and interest while slashing sovereign credit rating from ‘Aaa’ to ‘Aa1’ after markets closed on Friday. The announcement has weakened market sentiments — with US stocks finishing flat on Monday.
“The good news is….in a market crash becoming an entrepreneur may become easier, real estate becomes cheaper….as a crash opens up opportunities… not available in a strong economy. FYI: A depression can be the best time to become rich….if you open your eyes and start seeing the through the eyes of an entrepreneur….rather than an employee clinging to job security, steady paycheck and a crashing 401k,” he opined in a lengthy social media post.
Kiyosaki noted that he had predicted a similar turn of events in his 2013 book ‘Rich Dad’s Prophecy’ and reiterated calls for people to become entrepreneurs. He stressed the need for investment real estate in order to have a steady cashflow during a crash and recommended “real gold and silver and today Bitcoin”.
The well-known businessman also sought to answer questions about the recent downgrade in his lengthy social media post. The credit rating agency, he warned, was now telling the world that the US was akin to a “dead-beat dad who is spending borrowed money, without a job, and not taking care of his family”.
“A Moodys downgrade will probably mean higher interest rates which means a US in recession, which means the economy will slow, unemployment will climb, bond market, housing market, and weak banks may fail….which may mean 1929 Depression,” he wrote.
The remarks came less than a day after the author issued a fresh warning about a possible global financial crisis and urged people to ‘bail themselves out’ before the situation worsened. He also repeated his long-standing advice that traditional saving is no longer safe — contending that one of the best ways to protect oneself was “not by saving fake fiat money”.
“For most people the best way to protect yourself is by bailing yourself out. You bail you and your family out by saving real gold, silver, and Bitcoin…. No ETFs. The crash I warned about in Rich Dads Prophecy in 2012 has begun,” he had written over the weekend.