Kiyosaki Predicts Massive Money Printing

Robert Kiyosaki, the author of the bestseller Rich Dad, Poor Dad, has issued an alert suggesting that the real economic threat may not be inflation or interest rates, but a global liquidity collapse. In a series of messages on X, he posits that markets are faltering not due to fragile fundamentals, but because of a severe global shortage of cash. This scarcity, he contends, could lead to a new wave of money printing with potentially unpredictable consequences.

The Specter of a Global Liquidity Crash

In messages published over the weekend on X (formerly Twitter), Robert Kiyosaki asserted that the current market downturn, encompassing crypto markets, is a result of a global liquidity crisis. He stated, "The widespread bubble is bursting," and elaborated, "if all markets are collapsing, it is because the world is short of liquidity." Kiyosaki believes this demand for cash, rather than inflation or high interest rates, is the primary driver of the current panic. Despite the market correction, he maintains that he is not selling his holdings in bitcoin or gold, confident in their long-term value and viewing the drop as temporary.

Kiyosaki referenced a scenario of massive monetary intervention, which he terms "the big money printing" or "The Big Print," drawing inspiration from investor Lawrence Lepard's analyses. This theory suggests that governments, burdened by increasing public debt, will be compelled to inject substantial liquidity into the economy once more. Such an action would inevitably lead to the accelerated devaluation of fiat currencies.

He emphasized, "the big money printing is about to start… which will make gold, silver, bitcoin, and Ethereum more valuable… as fake money collapses." In this projected environment, Kiyosaki favors rare and decentralized assets, viewing them as natural hedges against what he describes as "fake money."

Key points of his position include:

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  He is not selling his bitcoins or gold, despite the market's decline.
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  He identifies a global cash shortage, rather than issues with the real economy, as the central problem.
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  He forecasts significant money creation by governments to manage their debts.
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  He believes assets like bitcoin (with its fixed supply of 21 million units), gold, and silver will directly benefit from the impending monetary devaluation.
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  He anticipates a resurgence in the value of cryptocurrencies as a consequence of the ongoing economic chaos.

Market Sentiment: Between Panic and Overconfidence

In a subsequent message, Kiyosaki reiterated his long-term commitment to bitcoin. He stated, "I will buy more bitcoin once the crash is over," indicating his intention to wait for the correction to conclude before increasing his holdings. He reminded his 2.8 million followers of bitcoin's inherent scarcity, noting, "remember… there are only 21 million Bitcoin."

Alongside his investment recommendations, he encourages his community to engage with his educational game, "Cashflow," to enhance their understanding of economic dynamics and prevent impulsive actions such as panic selling.

Meanwhile, the market appears to be experiencing extreme fear. Mister Crypto highlighted that Bitcoin's Fear and Greed index has dropped to 16, a level historically associated with strong risk aversion.

However, according to the analytics platform Santiment, this signal should be approached with caution. The platform warns that when a large number of traders believe the market has bottomed out, it can often precede a further decline.