Robert Kiyosaki has forecasted a potential global financial meltdown in the wake of Japan’s decision to terminate its longstanding carry trade. He warns that this could trigger a worldwide collapse in the realms of real estate, stocks, and employment.
What Happened: Kiyosaki, the author of the best-selling book “Rich Dad Poor Dad,” has expressed apprehension about the possible global repercussions of Japan’s decision to conclude its carry trade that has been in place for decades.
The carry trade has facilitated investors to borrow at low interest rates and invest in higher-yielding assets worldwide.
In a post on X on Sunday, Kiyosaki suggests that this alteration in Japan’s monetary policy could set off a global financial meltdown, affecting real estate prices, stocks, and employment. He posits that the unwinding of these trades might already be in progress, having begun during the Thanksgiving period.
Kiyosaki also cautions about the potential influence of artificial intelligence on employment, forecasting widespread job losses that could further destabilize real estate values.
His warning is issued in the midst of ongoing global layoffs, even as U.S. stock markets sustain relatively high levels.
Meanwhile, Kiyosaki has proposed a 10-point investment strategy aimed at assisting individuals in safeguarding and expanding their wealth during economic downturns. His suggestions encompass investments in energy, gold, silver, and cryptocurrencies like Bitcoin and Ethereum.
Despite the potential economic chaos, Kiyosaki stresses on preparation over panic, urging individuals to establish a financial safety net and evade excessive debt exposure.
Why It Matters: The termination of Japan’s carry trade could have far-reaching implications for global financial markets. The carry trade has been a significant source of liquidity and its end could lead to a tightening of global financial conditions.
This, coupled with the potential impact of artificial intelligence on employment, could create a perfect storm for a global financial meltdown.
As such, Kiyosaki’s warning serves as a timely reminder for individuals to review their investment strategies and ensure they are well-positioned to weather potential economic storms.