We are excited to have Robert Kiyosaki.
Most of you guys know him as the author of Rich Dad, or
to add one of the best best business books of all time.
Robert, great to see you.
Well, it's great to see you.
What talk I thought before the show started.
I'm in Warren Buffett's room.
You are?
Hopefully the vibes rub off on me.
I'm at home in South Carolina on a private island called
Brays Island. Let's.
So obviously, we're going to talk about.
You know what?
What's your crystal ball for 2024?
I know you study a lot, but at any given time you've got
and the 20 books you're reading and you're you're constantly
on the Internet looking and watching and studying.
And now what's a crystal ball for 2024?
Well,
a lot depends on, you know, kind of how old you are today,
because if you're my generation, I'm a lot more like Kennedy,
a baby boom generation has to watch out
because I think the S&P is going to crash.
And, you know, they called it the Magnificent Seven.
What did I mean?
Although I don't play the stock market, so that's about to go.
So the boomer generation is in serious trouble
and the median generation, they have to worry about the boomers retiring.
You know, mommy and daddy move in with you.
And then those are kids, your kids.
So the future is really, really right now,
in my opinion, divided upon age, because we have such unstable times right now
and we're just talking again before the show started.
The problem is our money and our money is fake money today.
So if I was a younger generation person
right now, you know, I would be giving all my money to Kenny.
Not really, but I'm sure I would.
Right now, what you're going need is income,
because I.
Artificial intelligence is going to wipe out thousands of jobs.
Millions of jobs.
And so the idea of, you know, job security is a myth.
Retirement security is a myth.
What do you do with kids and older guys, you know, boomers moving in on you?
So that's why it really depends upon your age and your bracket
and all that stuff right now.
If you look at the median income for 2021,
it took 31% of your money for housing.
That's the that was the number in 2023.
It was 41%.
So it went up 10% in two years.
So obviously, that's why I think one of the things
for 2024 is going to certainly we're starting
to see little pieces of it is going to be affordable.
You know, for that very reason, I think people look at it
as, let's say, you know, a greedy landlord or whatever.
But what they don't realize is that the money that actually is in their bank
account is worth less than it was two or three years ago because of inflation.
Robert.
Where do you see the dollar going?
Because, you know, when you're we're sitting I we have
we have Brett Johnson on recently and you know he has,
you know, the milkshake theory right. Which is
essentially you know,
we have the he described it as a swimming pool.
You know, there's money coming in through the
you know, into the pool, filling the pool, but there's a drain.
And that the other countries, because they use dollars, they don't have the drain.
So as we start filling our pool, it spills over into their pools
and creates inflation across the world.
Yet the dollar keeps pouring back into the U.S.
because we seem to be the most stable currency.
You know, what do you see? Or 20, 24?
Well, you know, we've known each other about 25 years now.
Yeah, I say this, too.
I mean, that's not rocket science.
I don't want anything they can print.
If they can print it.
I don't want I don't want stocks.
They can print it.
I don't want bonds.
They can print.
I want gold, silver, Bitcoin.
And income producing real estate financed with debt.
It's been my formula since we've met here in a study
I would get this is free of book real money for free people
Republic Monetary Exchange on Camelback Avenue.
Jim Clark.
But I study A-6, I study causally and I'm selling or studying.
I'm, I never stop.
I think bonds are the biggest danger right now because as you know, Kenny,
for years these financial planners, they keep saying 60, 40, 60,
40, 60% stocks, 40% bonds.
It was safe.
Don't worry, after the market crash, don't worry.
The Fed's got your back.
The Fed would jump in and save them.
Well, the next crash in 2024 and my prediction is they can't save them.
This one has got to go down.
And that's why I'm saying what the future lies.
It depends upon how old you are right now.
If you're a, you know, a baby boomer like me,
I'm like a lot of my peers, my old guy friends.
And I don't know if they'll be here in five years.
If you're like me
and then you're younger, but you have your kids coming up,
what are they going to do when I take their jobs away?
Doug I mean, so we're looking at everything is not intergenerational,
but all comes back to money and we teach nothing about money at schools.
I don't know if you saw this, Robert, but basically this is a new legislation
that proposes to take Wall Street out of the housing market.
So it just came out.
Now, you know, as you know, it's happening again,
you know, because they there is one there's a couple markets
where over 50% of the transactions were what was Wall Street?
In other words, in the single family market.
So they're saying Wall Street's competing against Main Street.
It's one of the hottest topics happening right now.
So it's just different words, but the exact same things, right?
Yeah.
And you know, when you talk to most real terrorism
and they're good people, financial planners are good people.
And so the question is, where do you get your financial advice from?
So as
I look in the future, I would say each and every one of us needs
to look into the future who were taking a financial advice
from a Fed, a real estate agent, a financial planner.
You got to be kidding me.
I'll say it again.
Anything you can print I don't want and it's funny because our friend's son
just started out in financial planning and he is like 26, right?
And he's talking about how he's getting clients and everything else.
And, you know, I love the kids very honestly, but all I could think is like,
what would hire
this 26 year old that goes out and is just trying to figure out how life
and how to pay rent and pay his bills to actually plan their financial future.
Yeah.
And so it can you ask me, what do I see
the S&P 500 as a benchmark for a lot of things.
So it so is the bond market and both of them are going to crash.
The S&P 500 is the Magnificent Seven, which is auto,
Amazon,
Apple, and those guys, they're all going down there.
They'll be a good buy if you like to buy it at the bottom of it.
But guys my age who are in their seventies
and eighties, they can't afford that crash.
So that's a big thing.
Another thing for a young person, cash flow coming in for
that's that's why what you teach kind of with real estate, you want alternative
sources of income, not depend upon a job
or the bond market or the dividend market.
Our banks are in serious trouble, as you know, Kenny.
I mean, commercial real estate,
especially office buildings, are in serious, serious trouble.
It's going to take down a lot of banks.
Right. Yeah, I think it too.
Well, a lot of people don't realize and I fell into this as well,
when you get out of college, you know, I put my money with a wealth manager
or financial planner and, you know, and I remember,
you know, not really moving very much because of all the fees.
I didn't quite understand it. Right.
I didn't even know really how was invested.
And that's the system that you're in.
And you you actually have to you actually have
to step outside of the system and say, is there a better way
other than just to let your employer invest your money for you do the match?
You know, there has to be a way to to have
other sources of cash, like, you know, when when
Anthony and I met, you know, she was already buying rental houses
and had already had cash flow outside of the system.
But she was inside the system as a teacher and realized,
you know, she wasn't going to make at a 3% wage
growth per year, all controlled by the school system, right?
Yeah, absolutely.
So I'm afraid, you know, again, how old are you right now?
What what I you know, I can and I met my first objective.
I came out of the Marine Corps was passive income.
I wanted to get as much passive income as possible.
I worked for Xerox.
I took real estate classes.
I was buying little pieces of property, you know, winning
some, losing some learning to help develop cash flow.
But the most important thing I learned was how to use debt.
And every financial planner would tell you, get out of debt.
And Kerry, we're in debt up to our eyeballs.
Yeah.
So they tell us not to do.
Yeah.
People don't realize that, you know, if you are stepping back from it all
and you're you're observing when you get into debt,
you're borrowing money that's not yours and you're fixing it at three, 4%.
You're actually beating inflation.
You're actually using other people's money to get rich.
As the economy inflates.
Well, what I do is I make money, I give it to Kenny, Kenny gives it back to me.
I take that money and then I buy gold, silver and Bitcoin.
I mean, it's not rockets, I it's your man and I don't keep Kenny I laughing.
I need to say this.
The gold and silver are not at my house.
Right, Right.
Any other final words on 2024?
What can people do next year or what could people do this year
to prepare themselves for what might come?
Well, again, it depends on your age and your financial situation.
But, you know, obviously education's important,
but your age, age is going to be a big US factor the next few years.
Like I, I look at my family,
I mean, how many of them have money so.
Well, they move out with me.
I mean,
those are questions that are real important questions.
What happens if your kids can't get a job?
Because I wipes everything out.
I'm not saying there's going to.
I just don't know what I just don't know with a I right now.
And then then you have the threat of a world war right now
with Israel and Ukraine.
That's why 2020 for that interesting year.
But I would stay away from anything you can prep and that's why
I like gold, silver, bitcoin and I like debt
income producing real estate, period.
Very simple.
Nothing's changed for me for 40 or 50 years.
I want to touch on something that you had said earlier.
You said that you don't think that they're going to bail out the bond market.
Can you explain that a little bit?
Well, because it is too big.
The biggest market in the world is a bond market.
That's kind of what Brian Johnson is talking about.
And all those you know, it's was.
But the dollar is very, very strong.
But the dollar is debt.
If you understand the only way a dollar exists is it comes from debt.
And those are called bonds.
So this whole system, ever since the Fed took over
a 1913 aspect debt and then they say get out of debt,
whereas Ken and I call this all of us borrow this stuff, you know.
So Kenny and I asked why, like the Fed,
most financial planners, because if we need money, we borrow it.
That's what the Fed does.
Unfortunately, a lot of these guys
put it into REIT is real estate investment trusts and all that.
And those are those big office buildings and warehouses
and shopping centers that are collapsing because technology has taken them out.
I mean, who was going to that office today
when you can sit at home and do what we're doing?
You know, why was why would somebody go to a shopping center?
What am will ship it to you that day?
So there are so many changes and that's why I mentioned I especially
for the younger people, because of the plan on job security.
You know, Danielle, I was and I was in Dallas about six months ago
checking out this company that's using A.I.
to teach kids, hey, I can do a better job than teach.
And think about that.
And then you go, Now, am I going to plan for job security as a school teacher
working for the government with a41k?
I would question all that.
And if you're my age right now, in my seventies,
well, my 401k survived, but I think 2024 the
the S&P is going to collapse with the bond market.
That's the worst case scenario. Hope it doesn't happen.
But the S&P is in serious trouble because the bond markets
in serious trouble, which means real estate is in serious trouble.
So it's a one big daisy chain, as they say.
You know, now you even think on an election
year, they won't try to prop it up or that they will.
Don't call around. They will.
It doesn't solve the problem, was what I'm saying.
Yeah. So, you know.
Well, we've already seen it.
We already saw a couple of banks go down this year, our last year.
And I think, you know, if you look at any kind of a banking
crisis, it it always starts with a couple, you know, and a SHUKMAN is always
talking about the BRICS, you know, Brazil, Russia, India, China, South Africa.
And they
all they're all they don't like the idea that we weaponise the dollar.
You know, they took that well. They took Russia off the swift system.
They confiscated our well, America's a bully because of the dollar.
So a lot of smaller countries want to stop us from using.
They want to take down the dollar.
That's why this whole conversation says it's about money.
And the reason we have problems is, you know, what's what's the what's
the biggest problem between the rich and the poor money or the lack of it?
Robert, thank you, my man. I appreciate it.
I'll see you. What, in a week?
Yeah, a few days.
It's exciting.
It's really exciting times.
And you can you can get ahead really far and fast.
But yeah, I think. How is success not doing things?
What you don't do what your mother and father told you to do?
Probably the best advice I didn't listen to my mom and dad.
I'm glad I did it.
I, I think the
key is just question everything, you know, like, that's the key.
Like Danielle started doing that with health and the medical system.
And what she's discovered is remarkable.
You know, obviously, we kind of focus on the financial system
was more opportunity coming, but we have a skill set that had to do it.
That's the question now.
That is the question.
Do you have the skill set to navigate all this?
Yeah, absolutely. And who are your teachers?
Where are your teachers? You know?