Epic Real Estate Investing - Robert Kiyosaki on More Stimulus Checks, Depression, and Collapse of the Dollar! | 1047

Episode Date: June 12, 2020

A few days ago, Robert Kiyosaki claimed that we are going to pile an economic decline on top of the global pandemic, the civil unrest, the national security threats, and potentially the most divisive election year ever! Not to mention that Kiyosaki warns us that there is an even greater issue than depression! But, don’t worry! Matt has got your back and in today’s episode, he shares 5 investments to make that will SAVE YOU and YOUR FAMILY from the IMMINENT FINANCIAL APOCALYPSE! Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, Epic investors, Matt here, CEO of Epic Real Estate, where I show people how to invest in real estate with an emphasis on retiring early. And I woke up today already to show you why real estate is a good investment during a recession. But yesterday, Robert Kiyosaki said this. Are we heading for a depression? We're already in it. The definition of a depression is really multiple quarters of subprime growth. And we've been there for about five years now. The only thing that prevented a real depression was generalist. Are you serious? Are we going to pile a depression on top of the global pandemic, the civil unrest, the national security threats,

and potentially the most divisive election year ever? Oh, and don't forget the murder ordinance. But wait, there's more. Robert Kiyosaki, author of one of the more transformational books for entrepreneurs ever, Rich Dad, Poor Dad. Suggests there's an even bigger fish sneaking up on us that we're going to have to fry. Bigger than a depression even. Not to worry, though.

Like always, I've got your back. I'll give you five investments to make that will save you and your family from the imminent financial apocalypse. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with master. the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit r-e-i-aise.com. Here's Matt.

Yesterday, Robert Kiyosaki released a short video. Another round of stimulus will make the rich richer. Take a look. The stimulus package is not for the poor middle class. The stimulus package is for the rich. So everybody said, oh, we put $2.2 trillion. Well, I think $340 billion went to the Fed from the treasury, taxpayer money. But really what the stimulus package is doing, you know, it's sending people at home an extra 600 bucks or $3,200, whatever it is. I didn't get, I don't get a check. But it's not enough because it hasn't solved the problem. He's right. It's not enough. The $1,200 stimulus checks that have been distributed thus far,

an absolute pittance. I mean, over a three-month period, that would have very little impact on anyone's life. And the extra $600 weekly bonus on unemployment benefits has done little more than ruin people's incentive to return to work, as so many are making more money now than they were when they were working. That benefit ends at the end of the month, by the way. And then what? More stimulus checks? Likely. And according to Kiyosaki, that's actually a problem, a really big problem. problem. Here's why. Don't kill yourself. That stimulus is there to keep the stock market propped up so the rich can sell and get out. So the only reason the stock market is at kind of high as I talked to you today is it provides what in the military is it called air cover. So, you know, the jets move in and all this and the ground troops could retreat. So the stimulus checks are to

keep the poor middle class peasants working on the farm while the rich evacuated climbing the lifeboats and escape. So is, are there going to be more stimulus? Absolutely. Is a U.S. dollar going to crash? Absolutely. His conviction around the dollar collapsing is the bigger fish I was speaking of that we're going to have to fry. Kiyosaki has been predicting this for a very long time. And if our government continues to fix stimulus packages with stimulus packages that get fixed by stimulus packages, he's eventually going to be right. Historically, all fiat currencies come to an end in one way or another, whether it be the euro replacing several currencies in 1999 or the fall of the denarius in ancient Rome in 274. Like I said, I was ready to talk real estate and the recession,

but then he said this. Are we heading for a depression? We're already in it. Only thing that that prevented a real depression was stimulus. Quantitative easing and ZER. Well, the Federal Reserve Bank, U.S. Treasury, and Wall Street out of the bag of tricks. They can't pull any more rabbits out of their hat. So that's why I've been signed, buy some gold, silver, or Bitcoin. According to Kiyosaki, we missed the recession completely. We slept right through it. And did you catch this? That real estate was left out of his investment recommendations from Mr. Cashflow himself. And instead, he pointed to gold, silver, and Bitcoin. Bitcoin. Is that even a real thing?

The whole collapsing dollar thing, it sent me down a rabbit hole today on my computer and it's deep. And it's very, very real. Robert's prediction that the dollar will collapse is based on the country's deficit reaching a point to where we lose the ability to repay even the interest on that debt. We will continue printing money in an effort to inflate the issue away. We're already doing that. And the almost certain outcome at best is nothing more than a delay of the inevitable. And this is what it will look like. The bigger our debt becomes, the more money we will have to print.

The greater, the inflation that will take place and the greater the likelihood of hyperinflation. To date, no country has ever overcome hyperinflation. And when we get there, it all comes to an end with a giant crash like you've never seen before. And it happens fast. Now, I'm not the first one to bring up the big picture issues of the dollar collapsing. But you'll be hard pressed to find anything or anyone. discussing what this means for us, for you and me at the street level. And that's perhaps the reason we don't give it much thought or credence, but we must. We can't afford to ignore it any longer.

And here's why. When the dollar collapses, the government will most assuredly introduce a new currency. It's in the playbook. Sometimes the play works. Sometimes it doesn't. We will have two options, though. One, we accept the government's play, or two, we adopt something different entirely. whatever the next best thing at that time is. That could be another country's currency, or maybe we start to barter with bullets and whiskey, chickens and goats, or maybe Pokemon cards come back.

It can happen. But most likely, it will be another country's currency. And when we do that, our government will push back, as they want to retain control of the economy and us, their people. And they will most assuredly penalize us for using other countries' currencies. It's in the playbook. Then it's our country.

turn to push back, as those penalties will lead to resentment by us. And we'll do everything we can to avoid using the new currency. Then, transactions using anything other than the new currency will be deemed illegal by the government. But regardless, it's still how value will exchange hands. Then, since no one really wants the new currency, our own leaders will be forced to use the illegal currency for their transactions. And then the inevitable. The illegal currency is legalized, given it's become the only workable solution. And eventually it becomes the unofficial currency of which really makes it the official currency.

That's a lot. I know. Sounds far-fetched, doesn't it? Well, it's exactly what happened in 2009 when Zimbabwe's dollar crashed. As Kiyosaki continues to point out, the U.S. dollar is in serious trouble when it goes back to 1971, when President Nixon took the dollar off the gold standard

and the U.S. dollar became fake money. The U.S. dollar is nearing a collapse, as is the euro. And the euro will likely go first. And if the euro doesn't have a new currency lined up pre-crash, the dollar will almost certainly become their official currency, considering it's already used throughout Europe. And although at the moment, the dollar is perceived as a stable currency, its stability relies predominantly on the stability of the euro. And when the euro goes, the dollar will be caught with its pants down. And the U.S. and any other country that holds the dollar as its primary currency, will be ringing the alarms like you've never heard them ring before.

You will witness the crash of all crashes. And then what? What happens the morning after the crash? What will you use to buy food, water, electricity, gasoline, toilet paper? There will be immediate needs by anyone and everyone across the globe that depended on the dollar just the day before. Now, our government will have seen this coming way before we were privy and they will have prepared. And perhaps they're already prepared. In the digital world of which we now live, you can push in all of your chips on a new electronic currency being introduced.

Because it will allow the government to, one, distract us from their blunders by blaming paper currency for the crash. Two, give them ultimate control over all trade through the use of a debit card, assuring that all transactions are processed by a bank. And three, it'll give them the knowledge of every single penny earned and spent.

empowering them with direct debit taxation. The government will have total control over its citizens overnight, but they will underestimate the American people. With the very recent evidence of the strength of the American spirit by way of armed protests in front of state capitals for extending the stay-at-home orders, and both violent and peaceful protests over police brutality and racial injustice, it's fair to say many of us won't be having it.

So now, re-enter that illegal currency thing I mentioned earlier. The American resistance will do everything they can to sidestep the new government system to avoid being controlled. We're already doing that. And maybe bullets, whiskey, goats, and chickens aren't so far fetched as a currency. Or maybe it would be Bitcoin or something like it. Kiyosaki's recommendation of Bitcoin now might not be so far fetched. Elsewhere in the world, with the euro and dollar gone, what would they use? Well, they could turn to Bitcoin as well. Or maybe we return to precious metals as our currency, like gold and silver. It's taking place in Mexico today.

There are initiatives right now to remonitizing silver. A one ounce pure silver liberated coin will function parallel to and be interchangeable with the existing pay per peso. It's not a matter of if, but when the US dollar will be forced to make way for a new reserve currency. The challenge, however, is predicting when it will be. And in the meantime, we still have recessions, deprivation. impressions and inflation to deal with. Fortunately, there's a playbook for that, too. I'll give you five specific investments that you can make to become financially crisis-proof.

One, gold and silver. Despite its replacement by the fiat currency, gold still holds as a solid economic standard, and hence, a reliable wealth to own when the dollar collapses. Some will say that gold and other precious metals are the only real money. It's been the de facto economic standard since Adam Met Eves. Jacob Rothschild, the British investment banker and a member of the prominent Rothschild banking family, is buying vast amounts of gold and suggesting to other bankers to do the same as the world is now in uncharted waters. If you've got idle cash frozen in the bank, consider converting those dollars to gold.

Even if this seems to you as a radical move at the moment, take comfort in knowing that gold doesn't radically fluctuate, diminish or devalue. It's relatively constant. And it's the one thing that's proven reliable during, economic disasters. Two, Bitcoin. I know. To many, it seems like a passing fad. I mean, we all remember the hysteria of Bitcoin in 2017. And we all witnessed the meteoric rise and even faster fall. But there are several reasons that you should be holding at least some of the world's first digital currency in your portfolio. The world economy is becoming more and more reliant on the internet. If it's not already totally dependent, and Bitcoin is the anticipated medium of digital trading. Bitcoin is a fiat currency, just like the dollar. But it's quant.

quantity is finite. It does not allow for surplus printing in a time of economic crisis like the dollar does. Its scarcity and the growing recognition of its worth are making a good case for its longevity. Bitcoin also has no geographical limits. It can be digitally moved anywhere in the world. It serves as an investment and as a medium for the purchase of goods and services. A growing number of significant global companies recognize it as a mode of payment, such as Burger King, KFC, Microsoft. The Dallas Mavericks accept Bitcoin as a method of payment for both game tickets and merchandise, even on their website. Subway and Gap and through Visa and MasterCard, you can buy anything with Bitcoin using their Bitcoin debit cards. I mean, just a

block from my house, there's a gas station with a Bitcoin ATM regarding Bitcoin as an investment. J.P. Morgan wrote in their February report that the crypto market continues to mature. There's still some unpredictability on the future of Bitcoin. So it is important to consider that investing in it is doing so with both eyes wide open. Three, leverage. Borrow as much money as you can. If for nothing else for the historically low interest rates. And I'm not recommending borrowing for shopping sprees and fancy cars and first classifications,

but rather borrowing money to make money. That's always sound advice in my book. Financial Apocalypse or not. But when the dollar does collapse, there might be an additional benefit having borrowed so much. Your debts wouldn't be eliminated by a dollar collapse, but repaying it would be a whole lot. easier. Imagine you had a mortgage of $100,000. That's the balance. And your annual salary was $50,000.

When the dollar collapses, and as a result of hyperinflation, your annual salary gets pushed to $1 million. And I didn't use the rectal extraction method to come up with that number either. This scenario that I just laid out represents roughly 2,000% inflation. Relatively modest as far as currency collapses go. In Zimbabwe, the annual inflation rate in 2008 was 231.3,000. million percent. Back to your mortgage. The balance is still $100,000 because hyperinflation doesn't change the debt balance. Before the collapse, it would have taken two years of your annual salary to pay off your mortgage. Now it takes less than a month. In general, inflation is good for debtors since it reduces the real value of what they owe and bad for savers, since it reduces

the real value of their savings. Further, when the dollar collapses, it will be easier to pay off existing debt, but it will be almost impossible or at the very very very, least, cost ineffective to engage in any new borrowing. So borrow as much as you can while you can. Four, investing yourself, as there are no bad investments, just uneducated investors. For example, in the context of borrowing, if you don't know how to borrow money at 5% to get a 25% return, that's not only a problem in preparing for a financial crisis. You're flat out leaving money on the table right now. Every day, formal education will make you a living. self-education will make you a fortune.

And number five, real estate. The list would not be complete without it. In fact, it would be irresponsible to leave it off. Real estate is the ultimate hard asset and often sees its greatest price appreciation during periods of high inflation. Like gold and Bitcoin, there is a limited supply of which translates to value.

More importantly, of which gold and Bitcoin can't say, real estate serves a basic human need. Humans need a place to lay their head, and they need protection from the elements. They need shelter, and it ain't free. If you own it, they will pay you for its use. Income-producing real estate will see its income rise in an inflationary environment. As property owners can adjust their rental rates to match inflation offsetting their own inflating living expenses. Historically speaking, real estate is reliable getting people through tough financial times,

and for those that held on to their real estate have fared well through recessions and through the worst of depressions far better than those that sold theirs. When the time comes for the dollar to collapse, making way for a new currency, you're protected as your tenants will be paying you using that new currency. Whatever it is, whether it's gold, silver, Bitcoin, chickens, or fidget spinners. Oh, and the icing on top of the real estate cake. If you borrowed money to buy it, as I explained earlier, that debt could be paid off in weeks rather than years. And should the financial apocalypse turn into the zombie apocalypse, owning at least one, parcel of real estate with flowing fresh water can't be overstated. So tell me which one will be

your next investment, gold, silver, Bitcoin, yourself, or real estate? Share with me in the comments below. And remember, whatever it is, borrow money to do it. I'll see you next time. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.