Listen to this amazing podcast from Palisade Radio with guest Robert Kiyosaki. (transcript also below)
Palisade Radio Host, Collin Kettell:
Welcome back to another episode of Palisade Radio. Today we have a new guest on the show none other than Robert Kiyosaki. You might know him better as The Rich Dad Poor Dad. Robert, thanks so much for coming on the show.
Author, Investor, and Entrepreneur, Robert Kiyosaki:
Thank you, Collin. I am excited about talking to you because you are a wild man and a man after my own heart.
Yeah, I was just joking before we hit record that you are making me look bad. You are in a professional studio with the soundboards and lighting, and rainy season is upon me here in Guatemala. It just got dark so you can hardly see me right now. But, anyway, we will go forward.
I saw you speak in Mexico and one of the brave predictions that you made, and you made this back in a book in 2002, is that there is going to be a major, major happening or market crash in 2016 or before that. I want to start the interview by touching on how you came to that conclusion?
Well, 2016 is basically a mathematical prediction based upon stupidity, and the stupidity comes about with this thing called the 401(k). As you know I do not particularly trust my government. I do not particularly trust Wall Street. I do not trust the Treasury or the Federal Reserve.
Around ’74,’ 75 when I became aware of the 401(k) I knew they were just trying to screw the worker as they normally do. A 401(k) is basically a tax. When you walk into an American company and they say, “Well, which mutual fund do you want with your 401(k)?” And then they give you this BS about while it is the company will match your money, so you put a hundred bucks in a company that will give you a hundred bucks. That is BS because it is your $200. They are not doing you any favors, you know what I mean?
Basically, it is like the ’43 Tax Act where they basically take your money before you get paid, and the poor, small worker, I feel for them, they do not have any idea what is going on. When my rich dad saw it looking at the 401(k), because we do not trust the government, the flaw in it is that you must start withdrawing your money at a certain age, and that year is 2016. It is basically a Ponzi scheme, so what happens when all of these guys with 401(k)s are putting their money in and old guys with 401(k)s start withdrawing the money.
How is the market going to go up when the money is coming out? It is based upon base actual tables on age. That was how I made the prediction on, but also knew that the government was printing money through quantitative easing. If you read the book, Rich Dad’s Propechy, which is the book we are talking about, I said the other time that would happen was terrorism would increase. Why does it increase? Because terrorism is cheap. It is very, very cheap, and it is very expensive for the United States to fight extended wars, which we are doing today.
So 2016 was basically a guess based upon some mathematical formula, but it was also based upon stupidity of our government, so that is why 2016 is kind of the year. It may be 2020, but it is coming.