Here are some notes I took while listening to Robert and Kim Kiyosaki, along with some of their advisers at a “Boardroom Meeting” earlier this year. He paints a grim picture, but he does (IMO) have a finger on the pulse.
Cash is trash. Savers are losers. The economy is in the worse condition ever, and it is global.
Old methods don’t work anymore – so you have to ask yourself what will work. Because of this crisis we are in, people are forced to look at creative ways instead of doing the same thing they have always done.
There will always be an economy, not matter what kind of economy, opportunities are still there, i.e. real estate deals because people want to get out of their homes and situation for much less than they paid.
Worse possible scenario is not a depression (we are in a recession and chaos right now). Robert believes we will bypass depression and have a monetary collapse w/ 5 years of rioting. Unfixable by government decrees (reference book, “Collapse”.) The governments are controlled and run by the biggest corporations in the world and thus corrupt.
The good news is after the collapse, then the real economy emerges (real values of assets, real estate, etc.) Jim Rogers of the Quantum Fund (with George Soros) said the let the system take hold, and it will come apart, will be terrible (horrible for some), but then it all becomes real again.
Estonia, 20 years ago, took a different approach from the old mother Russia, took paycuts across the board, made a balanced budget and started a country that was fiscally responsible. Peru was going through hyper inflation, head of finance stopped propping up the government and said “God help us” and let it ride. Now, they are in far better shape than before.
Individually make a decision if you are a US citizen or a global citizen.
In the USA, 15% don’t pay taxes (military, government workers).
We are a country that pays people who do not produce. Unions are killing us because everyone expects to get more money as they do less. Unions are anti-competition. Capitalism is you do more for less, Communism is you do less and get more. We have the mentality that the government will take care of us. Politicians are getting government welfare.
Technology is the mode that is the tool for the greatest new ideas in today’s world.
Money of the world = gold, silver, oil. Utah has allowed gold and silver to be currency – done like a debit card.
Oil at $82/barrel today, with rioting, Sudan, Libya, oil can get into the hands of Al Queda, can rise. Countries are falling into the hands of people that hate the US.
Drawback with oil is liquidity.
Conservative is doing what you are comfortable with. Creativity manages risk in a different way.
Wall Street and financial experts have done a good job of convincing people that they are should not take charge of their own finances and leave it to the “experts”. Too much risk when you do not have control of your money.
Advantage of silver and gold is they are very liquid – can sell right away. But have high tax rate when you sell it – 28% tax rate. Currently $40 silver in US is selling for $40 Euros in Europe.
Make good decisions to protect your own. Looking back, easy to see it was the time to buy gold and silver at $275 and $17 respectively.
Wayne Palmer, Robert Kiyosaki’s right hand man has a website – OldGloryMint.com. He offers 1/10th oz silver dime $5. MLM opportunity.
As screwed up as America is, Robert still invests in America, until the taxes or laws get too harsh on rich.
Investing in the US is the fastest way to get a green card. Set up LLCs, investing in real estate and businesses.
Real estate gives great tax break, can provide liquidity with lines of credit.
If things do collapse in your country, where do you go? Must think globally. Will need oil, housing, food, gold.
Change your context how you think about money. Status quo will not come back.
Treat your business as a business – set up your company properly. Do tax planning on global basis.
How can I do things differently, What can I do, what can I produce. Economy is moving so fast right now. Average person is financially retarded, has lack of knowledge = fear = wants guarantees. Want to abdicate responsibility, must become absolutely independent and capable of making your own decisions.
40% tax rate is bellweather. Currently at 35%.
Gap between white and black families is 20 times. Gap between rich and poor larger. Upper 1% makes 20% (before was 8%).
Be vigilent be attuned, be global, favorable to producers avoid non producers.
Be realistic. these are precarious times. Time frame is short (1 year?) Still haven’t seen inflation yet except in gold, silver, oil. Instead, we see size flation (decrease in size or amount) by about 20% Because of China we have low inflation. Our factories are now gone. (The US’ economy boomed after WW2 from 1944 because US had the factories that could supply the world.)
Have to create your own jobs, investments, always something you can do as an individual.
Preparation allows you to handle fear. Entrepreneur is French word = enter in and take control.
Can’t change conditions, can’t change government. As individuals take accountability. Stop blaming others, stop watching wasteful television, use your time to educate and learn what next step, start thinking different and doing things different. Remain optimistic. This too shall pass, and it can pass to our own benefit.
Our economy will not come back, it has moved on. Food going through the roof – farmers are old, land expensive, work is hard, not much profit.
In times of turmoil, choose your teachers wisely. Most people have bureaucratic mindset with job security, steady paycheck, benefits, no risk. Move into the world of entrepreneurship.