In the Eye of the Financial Hurricane

A 50-Year Storm Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] In the Eye of the Financial Hurricane - Our fiat financial system is on borrowed time… - Prepare for the worst now and you’ll see the silver lining (and find the pot of gold) when the storm hits… - History tells us to expect these three possible outcomes (spoiler: They’re all bad)… Recommended Link [Altucher: “I’m Betting This will Change Your Life.”]( [Read more here...]( I want you to know: it doesn’t have to be hard to make money on Wall Street. In fact, I’m betting that when you click this link, in just 30 seconds you’ll discover a secret that will change the way you think about investing forever. [Click Here To See It Now]( Scottsdale, Arizona September 22, 2021 [Robert Kiyosaki]Dear Reader, Today, the stock market rallied because the Fed indicated that it won’t begin tapering its asset purchases anytime soon. Gee, what a surprise. The whole system depends on fake dollars to prop it up. It’s like building a house on quicksand. Sooner or later, it’s going to sink, and it won’t be pretty. How did we get here? Last month, I “celebrated” the birth of the fake dollar with a tweet: Some people ask why I talk about that date so much. My answer is simple: That one day changed the course of the economy forever. There’s no turning back. It’s the day in U.S. history that you can point to and say this is why we have so much debt. It’s why today, savers are losers. Today, savers are losers. Why? It’s simple. The bank pays you a lower interest rate on your savings than the inflation rate. In essence, this means that your money in the bank loses more value than it gains over time. It’s a losing proposition to save. The dollar you save today will be worth less than a year from now. Before 1971, you could set aside a certain amount of money and retire on it. Your parents or your grandparents might have done just that, and it worked. But what worked for them won’t work for you in today’s economy. To understand why, you must understand the history of money. Without a solid understanding of history and how money is created, true financial education is not possible. And if you look through the lens of the past, you can better see the future. When the Federal Reserve was created in 1913, a deal was cut between the bank and the U.S. Treasury — a government-sponsored cash heist. An Ongoing Heist Before 1971, money was money, backed by the value of gold. If you saved 10% of your income every year, it could turn into enough to retire on. After 1971, money became a currency that could go up and down in value with nothing of value backing it other than the good faith and credit of the United States. When President Nixon severed the U.S. dollar from the gold standard in 1971, the United States no longer needed gold, silver, gems or anything else in its vaults to create money. Technically, before 1971, the U.S. dollar was a derivative of gold. After 1971, the U.S. dollar became a derivative of debt. Severing the dollar from gold was bank robbery of ungodly proportions. I have one final point about history. The Founding Fathers opposed central banks like the Federal Reserve. President George Washington experienced the pain of government-made money when he had to pay his troops with the continental, a currency that eventually went to its true value — zero. Thomas Jefferson adamantly opposed the creation of a central bank. Yet today central banks control the financial world, and we’ve granted them the power to solve our financial crisis for us, the very crisis they helped create. Recommended Link [World’s 1st Billionaire “Super Alliance” = 1 New Disruptive Technology]( [Read more here...]( The founder of Microsoft…the founder of Amazon…the founder of Virgin Galactic… Together, they’ve joined forces… And created a “super-alliance” of billionaire investors… To claim a ground floor stake in a new disruptive technology… That Bloomberg says will grow 12,100% over the coming years… And potentially overturn $100 trillion in economic assets. What do the ultra-rich know that everyday Americans like YOU don’t? [Click Here To Find Out]( Fiat Money It all comes down to fiat money. Fiat money is simply money backed by the government’s good faith and credit. If anyone messes with the government’s and central bank’s monopoly on money, the government has the power to put that group or person in jail for fraud and counterfeiting. Fiat money means all bills payable to the government, such as taxes, must be paid in that nation’s currency. You cannot pay your taxes with chickens or Bitcoin. Simply said, a central bank can create money out of nothing and then charge us interest on money it did not earn. That interest is paid via taxes, inflation. The fiat money policies of the Fed aren’t abstract realities. They are powerful actions that determine your financial well-being in both open and hidden ways. Anyone who purchases a home knows that for the first years most of your mortgage payment goes to the bank to pay down interest, and that very little goes toward reducing the principal. The bank effectively receives interest payments for money it did not earn but rather created out of thin air. The Dollar Is an IOU My “rich dad” explained to me that our currency isn't an instrument of equity but instead an instrument of debt. Every dollar used to be backed by gold or silver. Today, every dollar is an IOU guaranteed to be paid by the taxpayers of the issuing country. As long as the world has confidence in the American taxpayer to work and pay for this IOU called money, the world has confidence in our dollar. If the key element of confidence suddenly disappears, the economy comes down like a house of cards. And today, with the U.S. nearly $30 trillion in debt, it’s unclear how much more confidence the world has in the dollar. In the case of IOU money, as confidence in the dollar is lost, the value of the dollar goes down. It takes more money to buy the same things. In that scenario, savers are losers. Winners and Losers The winners are those who understand how debt and money work in today's world. Those who invest in assets that they can control and that go up in value with inflation and those who invest for cash flow are the ones that win. Those who are financially educated and able to technically trade on the volatility of the markets win. Those that follow the old advice to go to school, get a job, save their money, buy a house and invest in a diversified portfolio of stocks, bonds and mutual funds are losers. To simply say to a child, “Get a job, save money, buy a house and invest for the long term in a well-diversified portfolio of stocks, bonds and mutual funds,” is a script right out of the central banker’s operating manual. It is a success myth propagated by the super-rich. In short, those who follow traditional investing advice are losers. Those who follow the new rules of money are winners. Recommended Link [The tech behind this $42 device could KILL 5G]( [Read more here...]( Could a technology most people consider obsolete – available as cheap as $42 on Amazon – hold the secret to destroying the 5G business? One of America’s best connected tech investors thinks so. His work is respected across Silicon Valley – Bill Gates and former Google CEO Eric Schmidt have personally praised it. But recently this tech prophet shocked many people with a new prediction… about the demise of the 5G industry. Own 5G stocks? Or get your cellphone and broadband from AT&T, Verizon, Sprint or T Mobile? [Click Here To Learn More]( Storm Clouds Ahead By preparing for bad times, you have a better chance of seeing the silver lining when storm clouds gather and a better chance of finding a pot of gold at the end of the rainbow. It took 84 years, from 1913–2007, to put $825 billion in circulation. Today, in the 18 months since the pandemic began, the Fed’s produced one in six dollars ever created! Just think of that. Do you really think that this won’t have consequences for the dollar at some point? Here are some possibilities I see: - Hyperinflation: This means prices of essential items such as food and energy will increase at unheard-of rates. This will be devastating to lower- and middle-income families. - All countries will probably be forced to print money: Because the United States is printing money, all other countries will probably have to print money. If other countries don’t print, then their countries’ currency will become too strong against the dollar, and exports to the United States will slow down, causing a slowdown in the exporting country’s economy. This probably means inflation in every country that trades with the United States. - An increased cost of living: People who earn money from paychecks will find it harder to survive because higher prices will eat up more of their income. As I write this, I believe we are merely in the eye of the storm, and the worst is yet to come. All because of one day, 50 years ago. What’s the best way to protect yourself? Hard assets. Hard assets will grow in value because the dollars required to buy them will be worth less. Assets also produce cash flow in good economies or bad. Rather than save money in a bank or a retirement plan filled with paper assets, it’s important to convert dollars into real assets, assets that retain value and produce cash flow. Don’t wait until it’s too late. Regards, Robert Kiyosaki for The Daily Reckoning Editor’s note: PLEASE, don’t despair about today’s article. We know it sounds like doom and gloom, but you can [protect your wealth]( in the times ahead by adding physical gold and silver to your portfolio. It has to be physical gold and silver, not some ETF. If you haven’t had a chance to check it out yet, our business partners (we like them so much we bought a stake) at [Hard Assets Alliance]( have a great platform to buy and sell the physical stuff, whether you want it sent to your home or stored safely in a vault. [We highly recommend you click HERE to check it out today…]( --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Robert Kiyosaki][Robert Kiyosaki]( author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company. Add feedback@dailyreckoning.com to your address book: [Whitelist us]( Additional Articles & Commentary: [Daily Reckoning Website]( Join the conversation! Follow us on social media: [Facebook]( [LinkedIn]( [Twitter]( [RSS Feed]( [YouTube]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. 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