Robert Kiyosaki Predicts America Becoming the Poorest Country - Here's Why

Editorial Team, CNBC Indonesia

Market

Sunday, 17/12/2023 07:30 WIB

Photo: Robert Kiyosaki, Basabali.org doc

Jakarta, CNBC Indonesia – Robert Kiyosaki, a writer and businessman from the United States (US) started talking about politics in his country. He did not hesitate to say that Uncle Sam’s country, led by Joe Biden, would become a poor country.

“(Under Biden’s leadership) America will be the poorest country in the world, starting now,” he said in a podcast, as quoted by Benzinga, recently, quoted on Sunday (17/12/2023).

This statement has a reason. Robert talked a little about his visit to Mumbai during the Growth Summit India 2023 last September. During his visit to India, Kiyosaki traveled to the slums of Mumbai. Not only did he look around, he also interacted directly with the people there.

“What surprises most people is that America has never had slums like that. (But) today slums are everywhere throughout America,” he said.

How to Protect Wealth

Apart from discussing this, Kiyosaki also explained several ways to protect wealth in the current situation in America which he said was not conducive.

Kiyosaki is a strong proponent of investing in physical, tangible assets such as gold and silver, which are as liquid as gold and are the closest substitutes.

He still chooses gold and silver even though he has around 60 Bitcoins. According to him, although paper money can be produced in unlimited quantities, precious metals have an inherent scarcity, making them a valuable hedge against inflation.

Additionally, real estate is one of Kiyosaki’s favorite investments. While answering a podcaster’s question about buying a house versus renting a house, the American businessman said he owns 15,000 houses.

Retail investors can add real estate to their portfolio without having to buy entire properties themselves or go through the hassle of becoming a landlord. Publicly traded REITs offer a simpler and less expensive way to invest in real estate.

Companies like Realty Income Corp O in the US have large portfolios of income-generating properties, and investors get a share of that cash flow. Realty Income pays monthly dividends to its shareholders with an annual yield of 5.7%.

Fractional ownership is another popular option. There are even platforms available that allow investors to purchase single-family rental shares for as little as US$100 and earn passive income in addition to long-term profits.

The third asset class on his list of favorites is oil. On many platforms and online discussions, Kiyosaki calls oil “the lifeblood of civilization.”

However, compared to owning oil company shares, he prefers real investments such as oil wells. He often mentions the decision to close the Keystone XL Pipeline in 2021 and how it caused the price of oil per barrel to quadruple.

However, finding oil and drilling a well may not be a realistic approach for the average investor. Buying shares in a company like Chevron Corporation CVX would provide equity in nearly 35,000 wells in the United States alone. The company also distributes a dividend yield of 4.18%.

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