Robert Kiyosaki, author of the best selling book Rich Dad, Poor Dad, is a very controversial author and educator. Among his many critics, Kiyosaki has been accused of selling poor advice, advice that some say will “only make people poor.” Futhermore, critics continually say Kiyosaki is only selling advice he himself does not follow.
Regardless of the critics, or what you’ve heard of Robert Kiyosaki, he offers decent advice about the value of precious metals. Review what Robert Kiyosaki has said in his Yahoo Finance column over the past few months.
Kiyosaki remains consistent on getting education before making any investment decisions, which everyone can agree one, including Kiyosaki critics.
Kiyosaki points to the change of US laws and policies giving silver a unique advantage over traditional investments such as mutual funds or any “paper” investments like securities.
Kiyoaski points to the change under President Nixon, “world was following the Bretton Woods Agreement. Enacted in 1944, this agreement made the U.S. dollar the global medium of exchange.”
The Bretton Woods Agreement is named the “gold standard” for many people, meaning the U.S. dollar was “backed” by gold.
But in 1971, President Nixon took the U.S. off the Bretton Woods Agreement making the U.S. currency truly paper, meaning the dollar was no longer backed by any gold, as was the case under the Bretton Woods Agreement.
Kiyosaki among other investors such as Warren Buffett see the U.S. dollar as worthless paper without the gold standard backing the currency.
However, others argue the value is there because the government agrees to keep a reasonable scarcity, meaning the government won’t flood the world with currency making inflation spike.
One change the Bretton Woods Agreement changed is the amount of credit extended to America. Under the old standard the market would only allow America to carry a certain amount of debt, but when Nixon removed the standard the amount of debt the market gave America was expanded.
“The irony is that many Americans think we’re rich and China is poor. Exactly the opposite is true. This is because the removal of gold’s backing from paper money has created a virtual explosion in credit and liquidity. The sheer amount of liquidity around the globe is incalculable,” says Kiyosaki.
Regardless of the critics, Kiyosaki does offer a valid point: the only guarantee the U.S. dollar has is a promise from the government to control the scarcity of the dollar, which keeps the value of the dollar.
But keep in mind “the nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help,” said President Ragan.