ROBERT KIYOSAKI – RICH DAD, POOR DAD: How To Avoid the Next Global Financial Crisis – Part 1/2 | LR


Right now for the middle class of the world we’re in a crash it’s gonna collapse You should be very worried rich don’t work for money. Don’t you touch that stuff? They have money working for them very big difference in mentality The game the bankers and the rich play is different than what they teach you in school All over the world what the school teach you about money and the answer is nothing and that’s not a mistake You couldn’t learn very much here. We’ve been here before Whereas schools don’t teach us economic history So what happens to the average person in a financial crash? They don’t know what to do And so if someone’s listening to us that’s stuck in that poor middle class trap and they hear it’s their fear that ultimately is keeping them from that That’s a hard thing to hear Robert But you’re gonna give them the information about what they can do if they can get out of that fear you Don’t know if something is an asset on liability Until you can say which way the cash flows. So a house, is that an asset a liability? Well, if it’s taking money from your pocket, it’s liability. And that’s what the game is kind of hard wiring into your head Humanity is evolving and you got to ask yourself. What does God want done in the evolution of life? I don’t think God wants people to be poor. I Think God wants evolution. He wants everybody to enjoy. Well, not just a rich So most of my thoughts in a daily basis, how can I serve more people? Not how much money can I make the more people I serve The more effective I become The world is changing inspiration is everywhere It has never been so easy to connect share and bring people together We’re learning from others and finding the best in ourselves Challenging our beliefs Sharing our vulnerability overcoming our fears Transforming ourselves so we can transform the world How far can we go this is London real i’m brian rose my guest today I Was super excited to have robert kiyosaki back on london real for the third time now Robert, is the author of Rich Dad Poor Dad the number one selling personal finance book of all time and he was here to talk about his brand new book called fake and Robert is talking about fake money fake teachers and fake assets. He’s also talking about the crash That’s up-and-coming. And what’s gonna happen to all of us if we’re not aware of what’s going to happen He went on to talk about how you can avoid paying taxes the implications of cryptocurrency This is an episode You don’t want to miss but I was also super honored to participate with Robert in America’s first weekly cash flow summit. It’s a brand new way of making money and as a former Wall Street trader I was super excited to introduce this investment strategy to the public for the very first time now as the host of the event I’m able to offer you an exclusive space at the summit. But to secure your spot you must act now so click on the link below or go to London real geg forward slash cash flow and Secure your spot and I look forward to seeing you at the summit. Now I give you Robert Kiyosaki This is London real I am Brian rose My guest today is Robert Kiyosaki the entrepreneur educator investor. Best known is the author of Rich Dad Poor Dad the number one personal finance book of all time You have become a passionate and outspoken advocate for financial education by challenging the way tens of millions of people around the world Think about money your new book fake warns of the next financial crisis and what we can do to protect ourselves Robert Welcome back to London real well Brad. I’m honored and I’m really glad I see your office because this is amazing You like it here. I like it. It’s fits my You know, it’s so Eclectic, it’s great. Thank you so much. You know last time we spoke I came out to Arizona. We sat down had an amazing conversation A lot of different things and it really blew up. I think over 10 million people ended up watching that Robert So there’s some vibe I don’t know if it’s the two of us or people really getting into your heart in your mind that people really tune into And it’s people of all ages. So I’m super excited, you know, thank you out here with you. Tell me about London What’s your relationship like with this city? Do you like it here? It’s not sunny like Arizona. What do you think? Well, I love London just for the history of it. You know, it’s a seafaring nation and the school I went to was u.s Merchant Marine Academy at Kings Point New York and We learned how to sail ships and navigate the Seas so, you know the The Sun never sets on the English British Empire, right? And so that’s my association. Plus I played rugby And I remember her coming to Twickenham for the Rugby World Cup. I think within Twenties seven eight eight whenever I went was And it was like my god. I’m here to play. You know, I’m here for rug because rugby started here in London in England yeah, so I was a lot of fun memories, uh not a good memory, but my first wife was English from Sorry, the only lasted nine months wasn’t her fault was my fault. She should never have married a rugby player and I came back several times to play rugby here. So it’s been no Those are my drinking and playing rugby and chasing beautiful women days. I loved it here So anyway, that’s my association with England. Yeah. Well, welcome back. I mean you were a Merchant Marine spent a lot of time Yeah, you know all around the world doing that and I guess England really paved the way for a lot of that’sthat’s seafaring tradition and protocols, right, correct? Eh, they ruled the oceans. You know, there was a British East India Company one of the most notorious Pirate company one of the first limiting companies right? Correct and the American flag Is a flag of the British is India company and most people don’t know that so they said well in America They tell us that Betsy Ross sewed the flag All Betsy Ross, let’s take the British. You see Andy a good flag She’ll look it up and she put stars on it and that was the American flag. So The Sun still doesn’t set on thee I’m gonna look that up. We were called the great pirates. Yeah, yeah yeah, you know, I’m really curious about you Robert because you know when I saw you in Arizona I wa you know I saw how you’re living out there rich dead headquarters We spent time with Jim Rickards, and it was just an amazing time But I noticed that you don’t have to travel the world and do all this teaching, you know You could retire but you still do and I’m wondering what pushes you to get out there and make these long trips I mean, even when I saw you in Arizona you were just coming back from Japan you were you know, struggling with with health But you were showing up and making it happen. Why? Well, the long answer short question is Being an entrepreneur I was in the rock and roll industry and Back into AVS. I started studying with a man named. Dr. R Buckminster Fuller best known for the geodesic dome so in 67 I hitchhiked from New York City to Montreal Canada to see Expo 67 and But buckminster fuller’s dome was the u.s. Pavilion there so X X plus 67 was the World’s Fair on the future and fuller was a futurist, but I didn’t meet him there and then him back in 1981 I finally met him in Kirkwood, California on a Seminar called the future of business And so I studied with him 81 82 and 83 and every and and I was a hardcore make money entrepreneur and One day Fuller asked me says what’s your life’s purpose and I said make money And how did I know that was the wrong answer? and He scolded me, you know cuz here I’m in rock and roll and sex drugs rock and roll I don’t do drugs, but I was trying for the rest And he goes it’s a waste of a good mind just to make money and going What do you mean? you know, he says I Thought we were supposed to make money and he just challenged my Paradigm the way I looked at world in the business. He says And I covered this and faked and the question He asked me says why don’t you do what God wants you to do. I went what he says look Humanity is evolving And again, ask yourself. What does God want done? Not not what Robert Kiyosaki wanted done What does God want done and he could have scolded me in front of the whole class. You know, I’m going I Said what’s wrong with rock and roll he goes it’s about you. It’s your passion But it’s not God’s purpose and not really religious. I’m not pumping that So the question, you know I said to ask myself. What does God want done in the evolution of life and what I came to me I don’t think God wants people to be poor and today in the world America especially is as gap between the rich and everybody else And I know the game of the rich You know my rich dad taught me, you know it cuz you’re the banker the game the bankers and the rich play Is different than what they teach you in school And that’s the story of Rich Dad Poor Dad, you know my poor dad PhD stands for poor helpless and desperate they don’t know anything about money And he’s teach they’re teaching our kids and my rich dad was an entrepreneur who never finished school. I grew up in Hawaii so all of the pieces of the puzzle in went fuller scolding me back in 83 the Piece of the puzzle and my life started to come together And I understood what he was saying then you know, it says well maybe We should stop ripping people, huh? You know, it might be a good thing and You know a question I ask all over the world what the school teach you about money and the answer is nothing And that’s not a mistake. That’s not an accident. I knew that most people know that But the way to keep the poor the middle-class working hard is never teach them. What the rich know So if you read Rich, Dad Poor Dad, which came out in 1997? It’s what the rich teach our kids about money the poor middle class do not And so and I’d already retired and I made enough money at 47 So I didn’t have to work again for the rest of my life and I said now what do I do with the rest of my life and So that’s when I I came out with Rich Dad Poor Dad the cash flow game because poverty Hurts. I mean, I don’t like it And I don’t like that our academic system. So corrupt, you know, we know the banking system is corrupt We know politics is corrupt but act but academics is just as corrupt so I just said well if Exactly. This fuller said what does God want done? not what I want done Martin Luther King said another way says King says I just want to do God’s will so That’s what I cover in faith. What does God want done? You’re giving me weird flashbacks here Robert because for 20 years of my life. I was in banking. Yeah trying to do What was good for Brian, right, but honestly, the last eight years has been London real and this is definitely what God wants done Yeah, and it’s a computation. Yeah, but you won’t they all never get this on CNBC Right because it doesn’t play in with the whole structure that you talk about with Wall Street Right and the fact that it’s corrupted our academic institution that kind of makes you mad, doesn’t it? I mean one thing if it’s the banking and the politics but this is where we send our children and we trust them to do the right things for them and yet they’re being Not taught something so fundamental like you asked your dad when you were a kid dad. Oh, yeah Stratego about money and it was just never never have done never will So anyway because So that’s why I keep going you know, that’s why I appreciate you know your support of my work and time and all this because somebody You know without guys like you nobody hear about me, you know, I was on I was on CNN calling the crash of 2008 I said Lehman’s going down. You can check it out I said to Wolf Blitzer Lehman’s going down and he goes, huh? And he got all he got kind of flustered because they’re not allowed to say stuff like that. Right and we had Jean Chatzky who represents Wall Street, you know though the mutual funds and 401k guys she goes so They don’t want me to they don’t want what we know out there So that’s why fake us fake money fake teachers fake assets and The asset part, you know where that comes from. It’s the City of London Wall Street the derivatives markets LTCM long-term capital amount with records and all of us that know I kind of getting out That’s why I love gem records. I had dinner with him the other night That’s why we’re talking this is what’s really going on but our school system Will never tell us that because they’re part of the process Fake money fake teachers fake acids. They’re all one scenario And that’s what Bucky Fuller’s kind of inspired me to do back in 83. He says, you know something What do you know share it? What does God want done? was Martin Luther King says I just want to do God’s will so What drives me on in my health is not the best? but The will you know, the spirit keeps keeps me on hmm And you still publishing books you got another one on the way you’re going from here to Poland Romania tip South Africa out of Japan – It’s a powerful pace I want to get into what we talked about in face, but CNN never invited me back after that night And I can imagine I mean I was telling you earlier when I was in banking in London Lehman was one of my clients there were five traders over there that I got to know really well over five years personally And to suggest that Lehman would have gone bankrupt even six months earlier It’s sacrosanct not to mention from a network that probably gets a lot of advertising to us from blah blah blah Yes, and then I watched it happen on a Sunday night I was telling you I got a call at home from one of the traders said are you coming into work? I said it’s Sunday night You know I’m not and he said we’re mounting down now we need you in because we have to We have to undo all of our transactions now and it was and I want they walked out with cardboard boxes Right, and that’s because lemon didn’t play ball with them on LTCM the Russian ruble deal Right and we gonna get into this so they so they banged Lehman because hey you broke the boys club code Did I ask you business? Yeah, and you talked about that in the fake assets and I want to fake money I Wanted to preface this whole interesting thing by quote that you’ve said once and I and you said the primary difference between a rich person and a poor person is how they manage fear and When most people hear that they would they would probably say but that’s something completely different than money Robert that doesn’t have anything to do You know with money You know, you have a lot of strong statements for you saved things like that. How do people normally react? Well, when I talk to most people, you know, they said look First of all, let’s go back to what is financial education It’s not get a job work hard save money and invest in a well-diversified portfolio stocks bonds mutual funds and ETFs that’s not it you know money is the financial industry is two things debt and taxes debt and Taxes and that’s where fake starts 1971 Nixon took the dollar off the gold standard and the US dollar became debt And we still tell kids to go to school get a job Work hard save money and get out of debt Now who tells them to do that. That’s the most ridiculous thing There is the book starts and it says line number one Saving money will make you rich and never will you know that all taught that is kids. Yeah Because they can print it. Why would you save it? And why would you work for it if they can print it? as faster than you can work for it and And number two is they keep dropping the interest rates on it, you know, Japan still has syrup zero interest rate policy And the Japanese are the biggest savers in the world and I’m Japanese. I’m fourth generation They’re not too bright, right? Why do you keep saving when they’re printing it, you know and when I’m in Japan And that’s what I mean by fear They’re so afraid because the Japanese They’re very good culture, but they do as you’re told It’s very conformist Very conformist America for so they just do us are told And then they just save money and their government the sky a bay abenomics it’s just printing trillions of it and buying ETFs with it and And they don’t know what to do and they’ve been doing this for 12 are afraid they’re afraid Okay They’re afraid they might make a mistake the good little students in school go to school get a job Don’t make mistakes, right? And that’s what’s cool conditions people to do correct to not get mistakes Get an a on the test show up and do your homework But to be a great entrepreneur and investor and a great rich person you have to engineer Mistakes into your life. Well, I Write about it in fake, you know I mean the way I learned to be I flew from I didn’t I Stopped selling for Standard Oil of California as a third mate for them and I went to fly for the US Marine Corps in Vietnam And the military education different than academic education. We’re taught to make mistakes You know, so every day I’d fly and we had to wait to kill the engine on our aircraft and crash. It’s called autorotation I used to fly our 22s and it’s the scariest thing you’ve ever done but every aircraft we do we I was I was I Was cross-training all the aircraft. We always practice crashing Because one day yes, you know you will crash and you did crash and I did crash three times But if I didn’t practice that I’d be dead So what happens to the average person in a financial crash? They don’t know what to do. And right now as you know for the middle class of the world, we’re in a crash the you know the the purchasing power of the yen the euro the rupiah all going down and people are working harder and harder and harder and the Central banks of the world are printing more money interest rates You know Trump just hold the Fed don’t you raise those interest rates while that screws all the Savers, right and everyone hears the economy’s doing great and stop mark itself But the middle class and the poor are having a harder time, correct? right and that’s why that’s why I write and I speak and So if someone’s listening to us that’s stuck in that poor middle class trap and they hear it’s their fear that ultimately is keeping them from that That’s a hard thing to hear Robert But you’re gonna give them the information about what they can do if they can get out of that fear well, every time I and I do a lot of speaking to the masses out there, you know Lehman doesn’t invite me on because we’re gone, but they go what what you know, it’s so risky what you’re saying is risky I said What I do isn’t risky for me. What’s risky for you? And when somebody says what is risk? Yes the look in the mirror Jen I mean for me to fly in Vietnam that was high risk, but the higher the risk the more you have to study you know that I know that So if you’re not gonna study, you’re not gonna practice and all that then you should do what Wall Street tells you to do by you know 401ks mutual funds ETFs and all that but that that’s where they’re fake assets because he’ll they make Wall Street or The City of London rich just watch where the cash is flowing follow the money Yeah, it’s not making the poor middle class rich, you know all Wall Street in America has done is rip off the pensions because you know pensions are the biggest pool of money in America and states like Kentucky in New Jersey Illinois California Hawaii are going bankrupt Because Wall Street went in and just sucked all the cash are their pensions So the schoolteachers like my dad the firefighters and police officers. They have no retirement now And so that’s why is fake money fake teachers fake asses. They’re the same system and that’s what Bucky fuller encouraged me Years and years ago. He says you better tell the world that you know And that’s what I knew Let’s talk more about this fake money because I’d love to go through each one of these pieces and just keep a little bit more Of an idea. So Nixon takes us off the gold standard which basically means now they can print money whenever they want So what you’re saving and hoping that’ll be worth something one day Is it the whim of a government to just print more and make it obsolete? Well, make sure is that just thinking about it, doesn’t it? Yeah if you read Rich Dad Poor Dad rich dad’s lesson number one The rich don’t work for money Don’t you touch that stuff? You said when someone gives you a paycheck? It’s something inside of a person just shuts off, right? Well, it’s not even that they’ve already sucked the life out of your paycheck, right? I see it when 71 that’s that’s where fake starts My rich dad sent me a letter Oh stationed on the aircraft carrier off yet now and it says hey Did you know that Nixon took the dollar off the gold standard and we didn’t know we’re not in the banking industry And he says watch out the world’s gonna change so by the time I got the letter was 72 and Then my co-pilot I said well what does gold and gold standard mean, but we didn’t know American was illegal for Americans to own gold in 72 imagine that Wow That’s how powerful goal was I said and the more I researched it the more I found out so my Copen either where the book stars fakes threats, we fly behind enemy lines to go look for gold which proves Marines are not that smart And you were quite a wild one We’re sure yeah, we went to we went to look for gold and we’re standing in front of those little vietnamese woman Who’s the the broker for the gold company? And she’s selling those little cubes little nuggets of gold? And then you know gold was 35 an ounce. It was now pushing 50 an ounce so I figured while she’s behind enemy lines. We’re behind enemy lines. I can negotiate a deal Because little tiny woman or red teeth. Could they to beetle nuts all day long and I go I’ll give you $40 she goes She laughing about we’re behind enemy lines, I got us dollars she And then I realize she knew more about money than I did I don’t think she went to Harvard Jan I mean she knew that this was worthless the gold was worth more than my dollars and That’s where the fake money comes to and then I got curious. Okay So even she knew with very little education behind enemy lines that the gold was a real asset call spot, right right spot price Yeah as they know all over the world cuz what same price right? Yeah, it’s the same price via enemy lines same price and I’m going so why they take dollar off the gold standard And what does this mean? What don’t we know it? Follow it my Rich Dad, you know the pieces of the puzzle kept falling into place So what that meant was in 71 they could print as much money as they wanted. So as the economy of the United States worsened You know the deficit trade deficit And print and print and print so that’s why if you read when you read fake it says The people that are being screwed today are the poor middle class because they work for money You know the bank repairs they’re not working for money they have money working for them Yeah, right very big difference in mentality here. So we have in America today We have you know, even Ray Dalio of Bridgewater on the biggest hedge fund guys in America He’s saying this gap between the rich and everybody else is too wide. Well, you could have seen that back in 1972 because the moment you Corrupt money the very thing that everybody works for saves Counts on they were screwed anyway And our school systems fake money fake teachers fake as it’s part of that same system government Education Wall Street, or City of London and how does the fake teachers coming in from there? They reinforce those same ideas. They treat they teach us to be employees right to not notice it All right, get a job and it’s it’s very subtle. They don’t say To train you to be a worker be the rest of your life But they educate you in a way where that’s what you come out right and you know in in Paris today They have the Yellow Jackets. Yeah, the process going on in America today are red forehead All these cool teachers are putting on red t-shirts because they know they’re being screwed they’re protesting and all this their pension plans have been sucked dry by Wall Street and What they do, they put hedge fund managers in to manage the pensions you Got to be kidding me You put a hedge fund guy in to manage The biggest pot of money called the school teachers firefighters and police officers Pensions, they just sucked all the cash out of it and the teachers are going What happened to us? But because they don’t know anything it’s red for it They’re out there protesting in mass all over the United States, but you don’t hear about it. They talk about the yellow jackets They don’t talk about red forehead So this whole thing is coming apart right now and it goes back to the question. I elbow high above us ass Why doesn’t our school teach us about money because Wall Street won’t let him That’s simple that’s so now. You got a different education about money with your rich dad and I reread that book when I went out to see you in Arizona and What really hit me was the hard lessons he made you learn young you went to go work for him and I don’t even know how you kept going back, but because it was weeks and weeks of Asking you to do things I think not paying you but he was Forcing your brain to be uncomfortable so he could turn it into kind of the entrepreneurial brain, right? Well, what are some of the things he was doing because for a young kid, I mean, it must have been flabbergasting, right? well, he said I Said I want you to teach me about money. So it was so why should I teach you? You go to school your dad’s got the debt my poor dad’s not going to teach you he goes he says I said Oh finally I keep Acquiesced I said okay he says but if I teach you you work for me for free And I said why for free and my dad my poor debt whatnots. He says because if I pay you you think like an employee Your brains will your brain will change if you learn never to work for money, you’ll be a rich man So I might add the poor tip and the back story for people your dad was the poor dad right PhD Stanford Northwestern University cago the head of education for the state of Hawaii candidate for Lieutenant Governor of Hawaii as a Republican of all things they know nothing about money and They teach our kids, right? They’re good people like ninety eighty percent of good people twenty percent just are there for the pension and the paycheck? You know that and your dad knew that the poor dad was the one to go talk to about business He even he knew you know should go talk to buy about him about money. Right my poor. Dad said go Talk to your best friend’s father Mike’s father I said why is that he says because Mike’s father’s an entrepreneur and you know, nine years old. So what’s an entrepreneur? And I said, well, I’m an employee They’re two different people right mindset wise, right? And this is powerful Once you give someone a paycheck their brain turns off because it had been the promise of a pension right a job security Which is kind of a paycheck in disguise, correct? After you stopped working back to that old analogy give the man a fish eats for the day teach him to fish He throw a lifetime, you know one is capitalism one of socialism right today, you know, I don’t you been following in here the UK but the Democrats They’ve gone hardcore communist, you know, they have Ocasio Cortes Yeah, Elizabeth Warren, you know Bernie Sanders looks like a conservative, you know He’s hardcore socialist as they come and they want to give everybody a free education free medical You know free manicures free pedicures Universal basic and universal Income what do you think of all that? That’s wonderful, if you know how to pay for it But don’t do anything to get elected, right? Yeah, they have to go extreme right now Otherwise, they have no chance, right and so a couple of their lessons you’re you’re poor dads. Are you’re rich Dad said I’m not gonna give you a paycheck and yet you still showed up. What else was he? What was he trying to do those first few months were you working for him? What was he trying to get across to you? Because he taught you the hard way about money Well, it came a Lesson before I reg dead. I was in Sunday school I flunked out of Sunday school else and that whatever that I never did well in Sunday school But the my Sunday school teacher was a young pretty woman, you know, and she said I’m like nine And she goes why were the three wise men wise? You know I go cuz they were rich in the game the game they gave the swaddling Jesus Golf frankincense. And myrrh, so they have to be a rich guys. I said in a Oh commodities as well. Yeah And she goes no, no, that’s not it Well when they had gold frankincense, and myrrh, well, that’s not it. So why were their wise? I don’t know. Just what made them wise was they always sought the best teacher? As she said if you’re gonna be a successful in your life you’ve got to find the best teachers And so with that when my poor dad said go seek out your rich dad. I was just following her advice and Today, that’s why you and I jump no Jim Rickards and Nomi Prins and all these people they’re the guys that actually Harlow came from the inside just like you from the inside the machine and They know what’s going on and they tell the world what’s going on? so I’ve had a habit ever since then or a Policy if I find out there’s a great teacher and a great teacher is somebody who comes from the inside not the outside You know when I was in flight school I Swear to God my pilot Mike Instructors could fly because I flew with them but in school, you don’t know if your instructor is for real or not That’s where the fake teacher comes from When I was in my MBA program, I was still in a Marine Corps. I came back from the more I’m in the MBA program and back then this is the 73 now And the students were spitting on me yelling at me University of Hawaii. You know, I’m there I was stupid enough to go in my marine corps outfit my flight flight suit and They’re yelling at me baby killer and all this. I’m sitting in this classroom and my MBA accounting teacher Doesn’t know what counting and I’m going I’m going nuts I’m not an account, but I knew he wasn’t an account also So I took him honest and I said are you an account? He goes I have a master’s in accountancy. I Said that’s not the question Are you an accountant? I? Have a master’s in accountancy And I stood up and I said Marines are not the brightest guys I said Give it are you an account? Same answer as a you’re a fake You don’t know what you’re talking about and to this day when I listen to what people are teaching Kids about accountancy, it’s bad accountancy, right? This is not practical. It’s not real-world confusing Right right assets put money in your pocket liabilities take money from your pocket. They count anything of value as an asset They cut your car is an asset. Your house is an asset We’re just really taking money from your pocket your retirement plan. And guess what? the liability taking money from your pocket every month and whose pocket does it go to Wall Street or City of London and And that’s why is you and I know These funds you know, they sit there they go assets under management That’s what they’re paid on You’re not you’re not making any money But they’re making fortunes on the fees and assets under management and most of these hedge fund guys and all that You’re not making any money, but they’re sucking the fees out Every day right and most poor people confuse Assets for liabilities. They think their home is an asset. It’s an actually a liability, right and again, that’s why yelling at the Accounting teacher I said an asset is a noun like a house Cash flow is a verb, so to understand if it’s an asset a liability. It takes a noun + verb So if the cash is flowing out of your pocket, it’s a liability If the cash is flowing into your pocket asset verb, it’s an asset So I own 7,000 rental properties Those are assets every month the cash flows in Whereas many people have the big house on the hill and the cash is flowing out right and they’re going broke, right? It’s like a frame of mind the other thing the poor don’t understand is the number one expense for most people as taxes and Yet we don’t even see it Isn’t that weird you walk around and you look at the paycheck and say oh that doesn’t seem right and you don’t realize that The government’s got a huge hand in your pocket and you are doing nothing to minimize that again This is what it’s very different about the rich and the poor well the reason The rich don’t work for money is number one expensive tax See, there’s three kinds of income earned portfolio passive So earned income is if I get a job that’s earned income If I’m a doctor or a programmer that’s earned income because I’m working for it If I buy us a by let’s say Apple for ten dollars and I sent it for 20. That’s Portfolio income capital gains. Yeah But passive income which is cash flow Is never text So it’s not So obvious guys are screaming right now in America tax too rich I said, good luck Because most of the guys complaining they don’t know those three kinds of income and the rich don’t have jobs Anyway, they have assets and so the average small out there a poor guy, you know sent the kid to school. They don’t learn this So that’s why in fake as you were talking about it is a newspaper article about Jared Kushner and He explains how the Trump’s and the Kushner’s don’t pay taxes and make millions of dollars and the reporter couldn’t understand him Because they’re not our schools will never teach you that Three types of income and they judged him and say they’re wrong and it’s cheating and we see that over and over again Amazon not paying taxes. What do you say to people when they come up to you and say Robert? It’s not fair It’s not fair. They’re not paying taxes. Well, there’s always three sides to a coin, you know heads tails into edge You know some would say the coin a you are from my side. It’s fair But this is the difference. Everybody can do the same thing. I do because the tax laws are for everybody You know They don’t say well the tax also only for the rich the tax laws are for everybody to use if you have the right financial education and There is that I’m an advocate of financial education without that education. You’ll have to pay taxes You see very few people will buy what I do Make a million dollars and pay zero tax That takes and my rich dad taught me that playing Monopoly. That’s how it started, you know for green houses one red hotel Or the McDonald’s form and I write about it yet McDonald’s Ray Kroc. Yeah McDonald’s is in the real estate business. So they sell hamburgers, but they buy a real estates. They pay no taxes You know this guy Bezos, but he’s sixteen billion dollars how much tax did append a 16 billion? Zero and that’s all legal anyone can do it everybody could but everyone knows people lack the education Courage Jarrod learned about money when he was a kid by watching his father By watching these people will invest in real estate and said wow Not only do you get to make the money you get to keep the money. That’s a big problem A lot of people don’t understand they look how much money I made but how much did you keep? Because that could be half. Did you pay right? What tax did you pay? And so well you always say this is the law The law is true for every citizen you can do it, but most people just don’t do it Sometimes like you said, they don’t have the education but you need to have a plan if you’re gonna go do risky things Well, that’s not risky I mean to me what’s what’s a risk is having a job in paying taxes and saving money because they’re printing it You know that’s the worst thing of all and that’s why there’s fake money fake teachers the teachers will never they don’t know it right and fake assets because Wall Street or the City of London or Lehman Brothers or Goldman and though they’re not going to tell you this. Yeah, how are their billionaire bankers today? You know I’ve been supposed to be watching your money, you know. Yeah, I want to talk about that You said in here also the greatest asset you have is your mind What does that mean? Well because money doesn’t exist anymore Inside fake I cover the infinite return When I came back from Vietnam in 73 January of 73 My poor dad said get your MBA if my Rich Dad laughed And my rich I saw I asked her why she laughed, why’d you rich dad? Laughs? He’s so good you go You’re gonna turn out to be an employee Who else hires guys with MBAs? Yet. I mean he was just Pragmatic about it. He says if you really want to be a rich take a class on real estate I said why is that he says I didn’t know at the time but once you understand real life real estate is based on debt and He says you will learn how to use debt as money because that’s what happened in 71 the US dollar became dead So once you learn how to use debt as money, you can never say I can’t afford it You see because the banks will give you so the banks after the crash of 2008 The banks gave me 300 million dollars tax-free to buy real estate that the idiots had lost Atha stand there they were idiots because the prices were so high Why would you buy it at the top of a market don’t you know, that’s gonna crash They oh, no. No, this is the oh, that was the Subprime was the derivatives market. There’s mbss and all that stuff had driven the price of real estate so high and the rest of us were just waiting and then when the whole thing came crashing down all This real estate was now available and they needed you know The Fed and those guys in the Treasury needed guys like us to go in there So Wall Street gave us hundreds of millions of dollars to mop up all that real estate These guys had lost now, it’s fair because everybody could do it, right So, you know when they ask the average guy said can you why don’t you use debt? They can’t even get a loan Because there are scores their FICO scores won’t let me have them here are so bad. Right, right So that’s what’s going on in the world today. It’s fake money fake teachers fake asses The schoolteachers will never tell you that because they don’t know it my poor dad Never knew that and he thinks they think the rich are crooks The risks just played by different laws The rules are the same But you have to do what the government wants you to do Talk to me about these fake assets and what do people have to know about them? We were what we were talking about my history in the crisis. I remember in 98 when the ruble Russian ruble crashed Jim Rickards our friend was that long-term capital management I was trading derivatives at Bankers Trust in the First National Bank of Chicago and I saw them out there and Everybody wanted to do business with long-term capital, you know a big hedge fund and it nearly it nearly went bankrupt beneath LTCM nearly took on took down the world economy. Yeah, one hedge fund one hedge fund with these quote-unquote fake assets Well, cuz nobody took him to counterparty a risk to it, right and he were highly levered because they were these rocket scientists, right? No, Heron Prize winners. Yeah, Nobel Prize winners. Myron scholes and then one of the big guys from Salomon Brothers, John, Merriweather Yeah Merriweather. It was in that book liars poker. Yeah, they went out there and on the reputation alone They didn’t have the balance sheets back it up They got 20x leverage 30 X 40 X 50 X leverage and they had massive positions and when the ruble moved and markets moved Not only were they about to go bankrupt, but all the institutions that had blended money to them We’re about to go bankrupt the counterparty. Yeah, the counterparty and I saw this happening and it was pretty crazy. Yeah But explain how can you explain that to people and then what do they need to know about fake assets to protect themselves? Especially from this upcoming crash or crisis that’s going to happen. Can I give you a very simple? Please okay. I think I got it. This is Cuz I like to you know, rich data is important to keep it simple. Okay? This here is a balloon so in 1971 Nixon took the dollar off the gold standard. So what did that mean? That meant the US government the US Treasury Could now print money so they the US Treasury Would sell a bond to the Fed over here with a Bank of England Bank of Japan ECB and all this So in 71 it was the u.s. Not anybody else basically screwed the world economy So rather than fix the economy, they just did this So things were fine, they fixed the economy, you know inflation went through the roof There’s a dollar sign on it is pumping money into the system So 87 that was, you know the real estate Everything’s getting expensive inflation’s going creases in the 80s, right 87 crash big crash do anything happen? No, nothing happened. They just So 87 that went like this and then then there was the LTCM plus the Southeast Asian crash the rupiah crash and all this. Yeah 96 So what did Greenspan do it was the Greenspan put right he says oh, don’t worry We’ll give the bank’s all the money of a what so you won’t crash so the banks and Treasury and the central bank the Fed and bank of Bank of England, they’re like keeping this thing else everything’s inflated Now they’re pushing money into system to prop it up every time fake money fake money. This is fake right going in So then in 2000 the dot-com crash hits goes but So Greenspan kind of panics and he says oh my god we better keep this thing going cuz that was a pretty bag Pop you know, yeah So 2008 that’s when everybody was into derivatives and you know pumping this baby up and it did nearly come down Yeah, some Lehman came down and Bear Stearns was wiped out and it was like this. So, what did Bernanke and those guys do more So after 2008 they just kept pumping it and it’s getting worse so now we have the stock market this one area of the economy all-time highs floating on fake money Real estate. I mean, I don’t know how people can afford to live in a little in, New York I was looking at a condo for 55 million in real estate in Silicon Valley you you can’t afford to live there And then all these companies started borrowing money So the economy’s good and you know unemployment slaw and all this they say there’s no inflation But have you seen the price of food real estate and student loans and medical. It’s a bubble, you know So now what’s going to happen is the baby boomers my generation are gonna start to retire And there’s no money there Social Security’s broke pensions are broke Students the students are broke. Yeah, we’re screwing everybody with debt So let me ask you a question this is cause this is making me nervous I know this is called economics This is called bubble dynamics But they’ll never teach you this in school And why do they keep to printing money because they want to save something because it’s an addiction you Know this is like heroin the moment you take that one hit they say, okay I’ll quit next week And the economy gets worse so they could go Trump gave us a tax cut in America. This thing gets bigger and bigger and bigger So what happened in 2008? They stopped it by printing money. So we they call it the Great Recession But they didn’t really fix anything right, you know derivatives went from 700 trillion to 1.2 trillion today twice as much and that is Net you know, that’s not doesn’t tell the whole story. So when so when the recession hit The PhD standard came in that was Bernanke, you know, and then Yellen the PhD said they have PhDs What’s no different than long-term capital LTCM? They had Nobel Prize winners people like my poor debt academics, you know So anyway, this is what’s going on in the world economy today. So the baby boomers are gonna retire now Student loans are bust So Do you have to be an economist to say what’s going to happen? Because they this we’re fighting a 12-year war now Entitlements are going through the roof National debt, the GDP is a hundred and nine in the mare hundred nine percent Ninety percent is too late. We have to keep printing now. So this is called bubble na mcc’s and this is what’s going to happen Got it. I got it the economics one on one Scary stuff it’s happened throughout history. And that’s what I would To continue watching the rest of the episode for free visit our website London real TV or click the link in the description below

100 thoughts on “ROBERT KIYOSAKI – RICH DAD, POOR DAD: How To Avoid the Next Global Financial Crisis – Part 1/2 | LR”

  1. Watch the FULL EPISODE here: https://londonreal.tv/e/robert-kiyosaki/
    Robert Kiyosaki’s Weekly Cash Flow Summit – Learn more: https://londonreal.link/lrcfsyt

  2. Teachers that teach you financial stuff : teaches you

    Robert Kiyosaki: imma end these ppls career EZ

  3. Different than what they teach in free public school. In the long run things are always worth what you for then. The free public education makes you a good little worker, that will never have money, never. Oh you may have a pension one little piece of your wealth at a time. Appreciation, inflation , debt are very terrific tools.
    In our world cash is king, a great credit score is right behind cash, the two biggest, powerful tools there are.

  4. Why do they keep printing money? Why are they creating all these bubbles? Robert doesn't tell you what the Bible does, they want the whole world on their knees so that when the anti christ shows up on the world stage the whole world will welcome him with a big kiss. And the anti christ will offer them free food and free shelter in exchange for your soul in the form of some electronic chip that will go in your right hand or forehead. Why you think they are creating universal basic income? And Robert is no hero he is part of them how do you think he learned all this he is one of them. Look at the red string around his wrist. All humans should Invest their faith in Jesus Christ He is the only truth. Jesus got more money than these clowns. Believe in Jesus and He will provide you food so you dont need their microchip.

  5. rich people don't pay taxes I have been telling my friends this for years and they don't believe it video link for all these idiots.

  6. The sad truth is they waited so long to inform people, they waited so long for people to keep rolling down hill..the sad truth is exposed but no one has done anything. So what is the solution?

  7. The big secret of financial success according to the rich money guys is that "debt is money". This idea is counter-intuitive to most Americans (and for good reason) who are still unaware that the US dollar is the world reserve currency and can be manipulated. This manipulation led to the creation of derivatives in the market to satisfy the Super Greedy–and here we are. We are in a financial meltdown and relying again on gold and silver to secure personal wealth. Fancy that! The teachers did not create derivatives trading, the Wall street banksters did. Kiyosaki will not gain a following by blaming working families and teachers for their financial behavior; he needs to place full blame on Wall St. and the Federal Reserve. He never mentioned them in this discussion. True teachers seem to emerge once they have made their billions. K's a "good" teacher now, a kind of redemption for him?

  8. This class should be mandatory in Middle and High School. The Dept of Education has failed our inner cities.

  9. Ive been stuck for 56 years! Single mother,,,did it all on my own, but never had the opportunity to take risks. So, could you just pay off my mortgage?? Thats all I ask!

  10. The three wise men were wise , because they were buddha, krishna, and hermies. The wise that know esoteric history, know this.

  11. You talk about the difference about having fear between rich and poor, but you didn’t explain how to react to fear the way rich people handle financial fear

  12. I watched this because I’m all about spirituality about life. I am always asking god what is my purpose in life! I think I will start my journey soon! I feel it I was just talking to my coworker about my life purpose and I’m seeing thing clearer!

  13. I've always been the black sheep and have worked so many different careers. I always felt like the next thing was going to pan out and things were going to be great just around the corner. Now I'm older and am realizing that it never will happen and i just get by. old friends that didn't go to school and just plugged away for years are doing well. My mom and sister who both followed all the rules of the system are dking very well. I think all this kind of shit just misleads us on the hope that it will work and if you just follow the rules and work hard you will be better off. Of course, here i am hoping i can find the spark to get me going. I hope it works out for some of you.

  14. AOC, Sanders and the far left are NOT the Democrat party. That's moronic. That's like saying the Alt Right is the GOP. The majority of GOP did not support Trump in either the primary nor did a majority of all voters support him in the general election. As a matter of fact a Republican has not won a 51% majority for president since 1988. Obama did it twice and in the 2018 midterm the Democrats beat Trump and the GOP by 8% of the national vote– the LARGEST margin of the national vote in U.S. midterm election history.
    The reality is that a majority of voters in the GOP and Democrat party are moderates and those who decide elections are people with no strong loyalty to either party.

    I am self made capitalist. I don't believe you can pay off the national debt or fund programs by taxing the rich. But I'm also a student of history. During Republican Dwight Eisenhower's term the wealthy paid 50% more tax than they do today and controlled only a fraction of the wealth. Yet GDP and wages were growing at three times the current rate.. and the War debt was repaid without blowing up the deficit. The middle class had it's best decades in our country's history… all while the wealthy paid much higher federal income taxes. This idea that the wealthy paying significantly more in taxes will hurt the economy is silly. But it's also not a good idea simply because there are so few rich that you will not accomplish anything but one thing: the wealthy own a lopsided share the stocks that boards answer to. If the wealthy shareholders know that painful taxes are coming their way because the worker bees believe income inequality is accelerating then magically America's biggest employers start to feel pressure to raise wages to head off higher taxes or things like the Buffet Rule (minimum tax requirements on the wealthy). This aspect of higher taxes on the top 1-3% would be far more effective than what any corrupt union or minimum wage increases could ever produce.

  15. Yes, you can use the law to not pay taxes! The question does that make it the honorable position to take?? Rich people need to do act honorably and pay their fair share!! Just pay your share!!

  16. i actually saw some balloon's in a party store place once that had Dollar$$ signs already printed on them, i should of bought them and sold them to Robert for a million as Its an asset for him as he can use them in his business talk shows. 😉

  17. CNN would never let you back because they are apart of the fake economic bubble and they are afraid you would set the record straight.

  18. I've listened to all his books. This guy is a hack. Plain and simple. He may know how to make money (his books mostly) but his books literally dont tell you anything he just talks in circles constantly.

  19. You get to do what you do because of treason of 41st US Congress committed against the American people. District of Columbia Organic Act of 1871.

  20. its all will back to bankster ziopig grand design, they are not idiots also known if their bubble will burst, they also prepare for it, almost 100 years this design going on. thats why we should prepares dinar (gold) and dirham (silver). deustche bank collapsed start to global crisis? FYI Indonesia want creates money with back up by gold based on Sharia Islam dinar and dirham but world bank and imf doesnt like it. then my greatest first presidents Soekarno also has ties with Kennedy got coup 1965, then UK US robbed my country. its also has same case with Irak Saddam who dont want sale oil with dollar again, and Libya Gaddafi also dont want sale oil with dollar and Gaddafi also want creates money dinar and dirham for all Africa country. the petrodollar rise because US agreements with Saudi Arabia, Saudi Arabia can use US army as a return of sale oil wiith dollar, thats why now Russia and China try to fight dollar hegemoni. US UK its like Kiyosaki said Pirates Company. America and Europe doesnt have gold store? we are in Asia has many gold store.

  21. The only thing that matters these days is our walk with Jesus. Do you know him? Have you accepted him as Lord and savior into your hearts? Jesus said "I am the way the truth & the life, No man comes to the Father but by me" jesus was born of a virgin died on the cross was buried and rose again. He is God in flesh. The king is returning for his people some day please let it be today you become saved.

  22. All the $ he’s making as an author makes the books an asset. Now Im getting it. (Not being a smart ass)

  23. this is all BS. "How to avoid paying taxes". Oh really. How will the infrastructure of our world be built. Maybe Kiyosaki will finance it and everything else that make our lives bearable. Good luck with that.

  24. Not sure how teaching people to further exploit a broken system is "God's will"… Sounds more like the will of the Devil.

  25. If no one pays taxes then who pays for roads, security, defence, schools, airports, national debt, scientific and medical research, infrastructure, government. So tired of the rich bragging about not paying taxes and selling books to make the poor and middle class think they can do the same. Time to close the tax loopholes and tax the rich at the highest %.

  26. We just need to tax dividends and capital gains at the same level as Income tax.

    In fact I would go for a flat tax on ALL types of income. Set at about 20%. Robert would have to pay a lot more tax

  27. It doesn't matter it takes money to make money or to make money work for you but where were you start you got to have money and you got to have good credit I have none of these there is no hope for me other than to live paycheck-to-paycheck just to pay other people's pocket. I kept waiting for him to tell me what to do but he just went on and on and on about his past. it would take me at least two years to completely get out of debt if I made a serious effort but the economy will crash by then and I would be so broke by paying off debt that I couldn't invest anything anyways. I'm sure that he knows what he is talking about but for the poor the poor who have maybe fifty bucks leftover are their paycheck if they're lucky and thousands of dollars of debt there is no hope.

  28. Love the balloon analogy – a great visual explanation of how we got to the financial state that we're in now.

  29. This guy says "I don't think god wants people to be poor."
    Umm… Then how come your god is making hundreds of thousands of dollars every Sunday, but doesn't pay any taxes? 🤔

  30. What's the definition of poor and rich? Is it only money? No it's not. You can be rich without money or any material stuff!

  31. What Robert Kiyosaki talks about is a liberating knowledge and experience. Where does it lead us? Creepy scenario going over the horizon. Chaos looming over it. Is there hope for all of humanity not only for the rich but for the poor that makes up the majority?

  32. The last ten minutes of this interview is the way to explain economics. Cheers Robert! Thanks to London Real and Brian Rose.

  33. Robert Kiyosaki is one of the most well rounded and caring people I have ever read. I stumbled on a book He and Donald J Trump wrote back before the 2008 crash. "Why we want you to be rich". They warned about the great transfer of wealth that was about befall the public. Pay attention to him, he seems to enjoy helping people succeed.

  34. The thing with Robert Kiyosaki is he admits that himself and the banks participate to the continuity of the housing bubble of 2008, quote at 40:35. We are still in it today. Injecting money into the system is only a temporary healing to the recession and it falsifies the natural deflation that should have occured a long time ago.

  35. Kiyosaki is giving Hitchcock a good run in this video lol! Not only did he give you a lesson in economics. He gave you a lesson in suspense!

  36. Wonderful speech and training on how form education is different with inform education, school always teach theories and not practically, so if rich Dad could have enough education or PhD, nothing could be done, I like how rich Dad was so bright to teach Robert kiyosaki about paycheck.

  37. Evidently, God wants us to enjoy the richness of this world, but that will only be for those who acknowledge Him as their personal Savior and the riches will be that of the the renewed earth… along with eternal life, not for just miserable few years in a sinful life.

  38. I want to know a rich man's point of view of this men an there seminars. If they truly help or it's just taking advantage of desperate people.

  39. You are using rich and poor in connection with money only…those words can can different meaning if the context is different…

  40. The rich refuse to help but this guy with whos clearly smart cause he moves his hand is gonna give away for free and you'll get the whole story gor only 5 pay checks he gets payment wanna know the 1st trick shouldn't have paid me dipshit

  41. Schools are not intended to teach advanced entreprenarialship, they are just set up for a basic general knowledge to get you on your way. You have to seek out and learn the rest on your life experience journey.

  42. If we hadn't GIVEN AWAY our industrial and tax base to other countries, we wouldn't be in this mess. We had a surplus and a booming economy in 1998 before we gave everything away.

  43. Para disseminar melhor o conhecimento, para todas as pessoas de todas nações, poderiam colocar legenda em português e em outros idiomas também.
    Muito obrigado!

  44. It amazes me that some ppl really have something negative today bout this interview.
    Am a strong believer that there’s no hope for humanity and this one of the few reasons why lol
    He’s litteraly telling us how to get rich if we just decide to step out of our comfort zone, self educate and put in the work and yet only 1/20 ppl who watch this will actually do it.
    It’s truly sad

  45. Poor people believe in God, rich people believe in money and greed. Which road are you on? Notice the car he came in? It's like listening to Dalai Lama, preach in a poverty setting and live in a mansion with dozens of ultra expensive cars. 😂😂😂😂😂😂

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