The Truth About Banks and the Upcoming Crash with Kim Kiyosaki

Have women been lied to about making money?

Oh, what a great question. I don't know that they've been lied to, but they've definitely been ignored. I would say this is that, you know, none of us are taught about money in school, men or women, but women actually growing up, they're not, they haven't been expected to learn about money. It's always been something that is a man thing. So actually women, and still today, women are really taught to depend upon somebody else for their financial well being, be it a husband, be it a family member, be it the government. So lied to, I'm not sure lied to, but they definitely have not been encouraged to learn anything about money.

So that opens up three questions for me, Kim, and the first one is Andrew Tate. He says what you just said, a man should be the earner and a woman should look after the home. What do you think about that?

You know, if that's by choice, fine. But here's the problem is that the woman, whether she's going to be a homemaker or out in the business world, she has to understand the money aspect of their household. Because here's what happens is due to as women, especially as we get older, due to divorce or death of a spouse or just bad money or no money knowledge, a lot of women as we get older end up in a financial crisis. So if that's her choice, fine, but she has got to know what they have, where it is. She's got to be responsible for her own financial future as well. It's not a choice I made. I'm. I wanted my own money. I was crystal clear since I was very young that money had the power to bring freedom and choices and I knew that early on. So I always chose to be in the business world and to be an entrepreneur and to be an investor.

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That's a million dollar question, Rob. That's the million dollar question.

I've asked it about 600 times and I'm still trying to find the answer.

I don't know if it's by, on, on purpose or just, they just don't want to talk about it. So early on we, when we created the cash flow board game which is behind me and that was actually the first product we created before Rich Dad. Poor dad. Rich dad. Poor dad was started as a brochure to promote the cash flow board game. But early on I sent, I, I had a contact at Harvard Business School. Business School. So I sent them the board game and it was a woman professor and, and I said play this with some of your other professors and give me feedback. See, see what you think about it and especially if you have women because I'd like to tap into the women's market and I don't hear from her. And so I called about two weeks later and I said, hey, did you have a chance to play the game? And she said, kim, we don't teach money at Harvard and besides, women don't play games. And I'm like, what planet are you on? I, I don't know why, Rob, it is not taught in school. When we started the Rich Dad Company, you Know, the, the purpose of an entrepreneur is to solve a problem. And so the problem we saw was that there was no financial education taught in schools globally. So we took on that task to bring financial education to whoever wanted it, which is why we have the game and books and things like that. But we have. We don't go to the school system anymore. It's like hitting your head against the wall. So we've had some teachers, some, some principals, some parents who have brought the game to certain schools, but it's not something that, that is wanted or it's definitely needed, but it's definitely not wanted by the education system, which is a shame.

I think it's a shame. I actually opened a business and entrepreneurial section of a library in a school. I wrote a UK bestselling book called Money. And the only reason I got it in that school is because it's run by an entrepreneurial woman, Kathryn Berblesing. She's amazing. Now, I have a theory. I normally like to ask short questions, but this is going to take a little bit of context, but I'd love your thoughts on this. So my theory as to why money isn't taught in school is because maybe a small amount of banks and funds and families have a vast amount of power in the world, maybe. And so, you know, they know how to create debt. Money is debt. And they all buy real estate, Lloyds bank in the UK, BlackRock in America, gobbling up real estate for fun from essentially money that essentially they created as debt. And I know you and certainly Robert know how that works. I've spoken to Robert about it myself. And if we all knew that, then the banks maybe wouldn't be able to control us and get us in debt and have us paying our taxes and, you know, using us as a consumable. That's a theory of mine. What do you think about that, Kim?

I think that's very possible, Rob. You know, I think, I believe the school system originally began as a place to train employees, to train workers, and it was basically a. What's the word I want to use? Well, a place to indoctrinate employees. I think that's how it started. And I wouldn't be surprised if for that reason, I mean, the only way banks survive is, as you said, by debt, getting people in debt. You get people in debt that don't understand money, then you have a lot of control over them. Yes. And that's what's happening right now. I'm really concerned about what's happening globally with all of these Businesses and homeowners and their interest rates are going up and they're not able to pay for it because they don't understand the basics of debt. So I wouldn't be surprised. It's like, it's like the health care system is controlled by the pharmaceutical companies, which is money. So the families that want, the workers of the banks that want people in debt. I'll give you one story. We were recruited by a woman who handles the new, the rookies for the National Basketball association here, the NBA. And she wanted us to come in and to teach these new guys about money because all of a sudden here are these, you know, 18, 19, young 20 year olds all of a sudden with millions of dollars, no education, with money. She said, I'd like you to come in and just give them the basics and, and talk about it. And so Robert and I were ready to do that and we got a call and she said, it's been, it's been canceled. But who canceled it were the money managers of these players, not the NBA, the money managers. Because they did not want these NBA players educated about money. Because then to your point, Rob, they would have, they would lose control over that, that golden egg.

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So very possible theory. I would not be surprised at all if that is what's going on behind the scenes.

Does a central bank digital currency or a global currency, does that scare you?

Very, very much. Tremendously, tremendously. They've already launched in the US a thing called FedNow, which is like a precursor to the central bank digital currency cbdc. People are signing up. They sell it as easy and convenient. But all it is, in my opinion is surveillance. It's a way to control the population. They will see everything that you're buying and people go, I don't, you know, it's okay if they see what I buy. Well, what if you make a campaign contribution to an opponent of those people who are running the central banks and they say, oh Kim, you know, you just donated money to so and so and we don't like that. So we're not going to give you that loan. We're not going to let you buy what you want to buy. And oh, by the way, you can only use, you can only take out so much money per day. Now it's, in my opinion what scares me the most. It's a way to control behavior of human beings. And I think it's, I think it would be a disaster and one of the worst things that could happen to this world.

So I fully agree and I'm fully with you in that I am very vocal on my media. Resist a cashless society, get yourself educated around money. But then the issue is with this, did you call it willful blindness?

Blindness, yes.

You speak up too much, you get cancelled. You don't speak up, nothing changes. Do you see the paradox?

Oh, I do, absolutely. And it's in, it's, it's going to have to, it's going to take strength and it's going to take character. People are going to have to, you know, if you want to just go along and get along, fine, but there's going to be a huge price to pay and it's your freedom. And when I see what's happening, I get, I get so worried and so concerned. I'm really concerned about our banking system here and worldwide. The banks, they say, oh, everything's fine. Well, they're not fine and there could be a major banking collapse in the near future.

What is this banking crisis and when do you think this banking crisis could happen?

Well, the banking crisis I see started with the, with the, the fall of the two major banks here. In the U.S. was it Silverado, Silverado and First Republic, I believe. And so what happened is when that happened, people started getting worried about their money in the bank. So there was a little bit of a run on the banks and. Well, the banks hold bonds, they hold their money in bonds. And when that happened, they, because of legislation that was passed, banks did not have to carry that much cash in their physical banks. So in order to meet this onslaught of people wanting to withdraw funds, they had to sell their bonds. Well, the interest rates were high at that time, so the bonds they held were not worth very much money because they bought them at lower interest rates and lower yields. So people wanted the higher yield bond so they had to sell their bonds at a loss. So that was just the start of the domino effect. But it put these banks in very precarious situations. I'm seeing right now a lot of banks aren't able to make it. And, and the most important banks I believe are the, are the kind of the, the rural mom and pop, the ones that, you know, you went to for your first business loan and they've helped you build your business and they know you and they know your company. My concern is it's, it may be design by design. I'm not sure if it's by design. It could be that we're going to see only like five major banks here in the US and everybody's going to be banking with these five banks. Again, you know, you have no personal connection and a lot of banks are, you know, they're businesses and some of them I see, I just concerned that they're on shaky ground and I don't see any way that they will be supported.

This recent budget should warn you that your pension is not safe and secure and they're coming for your inheritance. Do you even know how much is in your pension or where your pension is invested? Add to this the recent inheritance tax grab on your pensions and the risk of a market crash. You probably didn't know this and I didn't until recently, but physical gold can be added to your pension. Pot gold is inheritance tax free and has grown 700% in the last 20 years. You probably know from my content I'm investing heavily in silver and gold and that's why I've partnered with direct bullion. Myself and Nigel Farage are brand ambassadors and direct bullion can help you with gold to protect and grow your pension. I buy my gold and silver from direct bullion and I don't earn any money on any purchases of gold or Silver if you buy direct from direct bullion. So if you go to robmore.directbullion.com you can get a great price on your silver and gold. And you can get the Pension Gold Investing Guide completely for free. As you know, I don't do many strategic partnerships, and when I do, I do them with people who are credible, who've been doing it a long time, who invested things that I invest into. And gold and silver's going wild. I'm investing heavily in gold and silver and I recommend you check out robmore.directbullion.com so, so you don't think they'll be bailed out?

I think they'll be bailed out. And, and to that point, I, I actually, even Janet Yellen even said, oh, well, we'll decide basically who gets bailed out and who doesn't. And it sounds like the small banks are not on her list of who gets bailed out. But to that point, Rob, now there's a thing, and I know you know about it, called the bail in. And this happened in Cyprus and there's talk of it here. And so that's another concern. In order, if these banks start going under, they could do what's called a bail in. So a bailout, the government comes and, and bails you out, or other big banks come and bail you out. Well, a bail in is they take your money out of your bank accounts and you bail them out and it's called a bail in. So you go to your bank and Instead of having $10,000, £10,000, now you're at 2,000. Well, where did it go? Oh, you just helped save your bank.

Well, the thing is, we pay anyway because if they're bailed out, it's the taxpayer who pays.

True.

Sometimes I think, oh, I wonder sometimes if letting some of them go bust might be better so people can wise up and manage their own money.

Yes, let, let nature take its course. Yes. Bad job. You know, they should, it should have happened with all the, all the investment banks. When Lehman went under, there were others that could have gone under. They should have let them fail. Let them fail. If they're not, if they're not doing the job that they need to do, let them fail. Let it re, restructure and, and move on. I'm with you. I think you got to let, let the business world let the market speak and not try to control it all.

In your book, rich women, you said when it comes to money, men and women are different. What are these differences?

Yes, the. How To's of money, you know, how to, how to buy a property, how to, how to rent a property, how to buy stocks, how to buy businesses, all of that. The how tos are the same. But what's different is how men and women were raised according to around money. So as I said earlier, you know, women have been taught more to depend upon somebody else. And so when it comes to money, they, many, many women think that they're not smart when it comes to money. Well, it's not that they're not smart, they just haven't been educated. And so I see some of the differences too in that when women do get behind this, their financial education and they start investing, they are fantastic because they say women are risk averse. Well, if, and, and I, I like that. Another term I heard recently was they're not risk averse, they're risk aware. So they, they understand the risk, they do their homework, they study the investment. They want that bottom line cash flow. So I think in that respect, because we haven't been expected to know much about money, at some level that's a disadvantage, but at other levels it's an advantage because we don't have any problem asking somebody for a definition. We don't have a problem saying, I don't know anything about this. Can you educate me about this? Where sometimes guys can have a bit of an ego. I mean, we all have egos. We all have egos. But sometimes the reasons for purchasing an investment might not be just about the bottom line.

You're in a lot of debt, aren't you?

Tons. Tons of debt. Yes.

Dave Ramsey says all debt is dumb. What do you say to that?

I say no. I say there is that I would disagree with Dave and I know Dave and totally disagree. So yes, yes, as we talk about many times, there's, there's good debt and there's bad debt. So bad debt. Yeah. I think bad debt is dumb. So bad debt is debt that you have to pay for personally. So your, your personal residence, if you have a mortgage, that's bad debt. If you have a car loan on your personal car, that's bad debt. Credit cards from department stores, that's bad debt because you have to personally pay for it. But the only way I know to get wealthy financially is by accumulating good debt. So good debt is mortgages on my apartment buildings, mortgages on my, or loans on my, my personal business that I, that I operate. That Robert and I operate, that money makes us money. So it's just leverage. But you, but in order to understand good debt, you really have to, you really have to get educated. Because I know a lot of people who, they're like, oh yeah, well, it's debt for my, for this rental property. I'm like, okay, what are the numbers? Figure out. And, and here's what's happening, Rob. As you know, as interest rates go up, that debt is getting more and more expensive. And so because of that, people who had a positive cash flow now are getting negative cash flows. So I always go again to the worst case scenario. Here's your, here's your property, here's your income. Here are your expenses. Here's your net operating income. Here's your debt, here's your cash flow. Positive or negative, It's a very simple formula. But if you don't understand debt, then it can keep you very poor. But if you do understand it, it can make you very rich.

Amen. I agree with Kim Kiyosaki. What are some of the best ways to make money today?

Oh, that's a great question. So we built the Rich Dad Company on some principles. And they come from a gentleman named R. Buckminster Fuller. He's a futurist visionary. He basically he invented the geodesic dome. He was an inventor, and I won't go into the story, but he was about to take his life. Life wasn't happening for him. He was about to take his life and he had this aha. And decided to dedicate his life to the betterment of humanity. And what he did is he set out to discover what he called generalized principles, which are principles that are true in all cases. So for example, if I take this pen and I drop it, the principle of gravity is true in all cases here on planet Earth. Now, he didn't discover gravity, but he did discover other principles. So when we started out with the Rich Dad Company, there were two principles that we wanted to build our company around. One was called ephemeralization, which is doing more with less. And part of that principle is the more people we serve, the more effective we become. So one of the first questions we asked is when we create this business, we want to make sure that we're serving as many people as possible. The other principle, and it's a funny name, it's called angular redundancy, which basically means, you know, we don't need another gas powered car company. We have enough gas powered cars and models and that's redundant. So the principle behind that is, what is there out there that needs to be done that no one's doing that you could Do. So if I was starting today, I would, I would look at those two principles. I would look at what is needed and wanted. And it could be just in your neighborhood. You could see it in your neighborhood, what's needed and wanted, that nobody's doing that. You could do this. Where some of the best inventions have come from personal, you know, something that they. Somebody wanted personally because it wasn't out there. And then once you figure that out, figure out how do you, how do you serve the most people possible? It's so much easier now with, with the Internet and the, and the global web and so much easier. So those are the two principles. And then the, then I would just look at trends, look at trends that are happening. Look at, look at what happened during the whole trend of delivery. Everybody wanted delivery. So one thing Robert and I did at that time is we went to the. I have a place in, in South Carolina, and next to South Carolina is Georgia, the state of Georgia. And they have a huge, huge port system, so a shipping port. And we're like, everybody wants delivery. So we're like, okay, let's go look at warehouses, because they're going to need more warehouses. You know, there's going to be more Amazon, there's going to be more FedEx, there's going to be more everything. And even then we found out we were too late to the party, and that was just at the start of COVID But so, you know, delivery education is a trend that, as we talked about, is changing. What are some trends that are happening in your neighborhood that you see different than it was? You know, doing Zoom calls is very different than we did years ago. So I, I always like to look at trends, and it's not difficult. You just look out your, look out your front door. Here in the US I'm glad I'm in apartment buildings because we're, we have a nation of renters. We're becoming a nation of renters. They rent everything. They rent cars, they rent houses, they rent, they rent bicycles, they rent everything. So the rental market is, you know, I just start looking at trends in your neighborhood, and I think you'll see opportunities.

Let's say someone's got a bit of money to invest, but they've also got some bad debt. Should they pay off their bad debt and therefore they've no money left to invest, or should they invest with the money that they've got and still have the bad debt?

It depends. But I would say if I had to choose one, I would go for the investment. And if it's a good investment. That investment can go pay off some of the bad debt. I would rather do that. I would rather have an asset that is paying off the bad debt than just throwing cash at the debt because then you have nothing. So. And I know Robert wrote about. It's in, it's in rich dad, poor dad, when he wanted to buy his Porsche. And we have a rule. If you're going to buy a liability, you have to buy an asset to pay for the liability. So we found a self storage property, bought it. The cash flow from that paid for the Porsche. Once the Porsche was paid off, we had the Porsche and then we had 100% of the cash flow from the self storage. So it's not rocket science, as you know, Rob. It's. It's pretty common sense of which is lacking in this world right now. But yeah, it's, it's not rocket science. But yes, start small. And I, you know, I'm, I. They call me the queen of cash flow. I love cash flow. I'm all about cash flow.

What are Kim Kiyosaki's top investing tips?

As I said, start small, start small. Get in the game, you know. Okay, so numbers. I'm not a numbers person necessarily, but I've become. I love the numbers and not because of the math or anything like that, but get really, really good with numbers because numbers tell a story. I can, you, you and I, Rob, could look at the income state, the P and L of a property without ever seeing the property. And we could know what's going on with that property. The more you understand the numbers and the more you understand the numbers, I think this, the more successful you will be, people. And don't believe the stories that other people are telling you. I had a, had a. Oh, I had a real estate broker and he was showing me a property and he's like, yeah, you can do this, you can do this and you can do that. I'm like, okay, great. I was like, see that, those pigeons up there on the roof? And they're like, their stuff is everywhere. How often do you have to repaint this property? And how do you get. Oh, that's not a problem. That's not a problem. I said, oh, really? So I actually went and researched. How do you get rid of pigeons? And the answer is it's very expensive and they always come back. And I'm like, okay. So there's a, there's an issue. So, you know, don't take. Think for yourself. Think for yourself. When you're looking at property and get into what I call a is is deal flow where people are sending you deals even before you start investing. Just, you know, look over and the income and expenses of different properties and get a get. I. I've had mentors on everything all my life. You know, find somebody who's doing what you want to do. If it's real estate or if it's paper assets like stocks, bonds, mutual funds. Find a mentor. But get educated first. The best investment as, as you teach Rob, is is that is your education, your financial education. Get that financial education. Then find an investment. Don't worry about I don't have the money. Don't worry about I don't. Don't use that as an excuse. I don't have the money because I like to find the investment. Then it becomes real and then you get really, really creative on how to find that money. I mean, our first, probably our first 12 deals, real estate properties we bought, we did not have the money. But you get very, very creative. So never you let the excuse I don't have money stop you ever.

This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting, video and social content. Visit disruptivemedia.co.uk to learn more. This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting, video and social content. Visit disruptivemedia.co.uk to learn more.