Robert Kiyosaki: Don’t Save Money Exchange It For Silver and Gold

the third year rule of money is I think the big mistake is here so many people say it’s important to save that’s ridiculous and the reason that’s ridiculous is because what happened in nineteen seventy one is crucial in 1971 the US dollar stop being money in 1971 the US dollar became a currency and what that meant is Richard Nixon in 1971 the president took us off the gold standard that’s like giving an alcoholic free reign to the bar or it’s like giving somebody we can control their spending unlimited credit cards so what’s happening is all the sabres today on losers you know the problem with 1971 is that the federal government keeps printing money so the value of your money keeps going down so these people I’m saving saving saving and if you notice as the value of the dollar goes down prices go up so they call this inflation you look at in 1997 oil was about I think ten dollars a barrel ten years later it’s about a hundred thirty-five a barrel so they say its inflation but really what it is is the dollar’s value coming down so savers are getting wiped out today so just keep saying to yourself and to your kids to save money that is not the new rule that’s an old goal so a very big problem for most people stop using the word save and use the word hedge you’ve got to hedge your money hedge against losses like when I buy a stock I put a hedge and after the stop loss or put inside of it or call whatever I’m doing I want to stop it so today I don’t save money I’m hedging so I in 1997 I started investing in oil gold and silver so as a dollar drop oil gold and silver went up so I’m not betting so much on oil gold and silver I’m bidding against the US dollar and that’s why this idea that you’re going to tell people you need to save money that’s really really an obsolete idea because the idea when obsolete in 1971 the US dollar in the last few years has lost almost eighty percent of his purchasing power and the prediction is because this has happened throughout history it happened thousands of years ago with the Romans with the Greeks with the Germans with the English the Japanese and the Chinese every time they’ve made money money into a currency something you could print unlimited every time they have that has happened the currency has gone to his true value which is zero so I am afraid as economic volatility continues the savers with operating by the old rules of money I just going to get wiped out because the purchasing power of their dollar is going to go down so even if the bank paying you five to ten percent interest you can’t keep up with the bank’s printing money so that’s the old rule of money is saving money and the new rule is hedge you’ve got to be able to see what’s coming up as something else is coming down the last thing I want to point out to you on this idea of saving money is this one of the biggest misunderstandings in the world today is what they talk about if i misspell again apologize is the US Federal Reserve Bank which I believe was created in 1913 in 1971 the reason 1971 such an important time was because the US Federal Reserve became the bank to the world they could print as much fun as they wanted never in the history of the world has anybody been allowed to print money for the rest of the world amid back back one more time i talked about how the Romans did it the Greeks did it in all this every time people have done this chaos is broken out and that’s why this chaos in the world today so in 1913 when the US Federal Reserve Bank was created they were basically allowed to print money for the world every time that has happened throughout history a despot has arrived for example in 1933 a man named Adolf Hitler rose to power when the y mar republic was allowed to print as much money as it wanted to do and in Russia when russia’s currency broke down a man named Lenin rose when the Chinese economy broke down Mao Zedong rose when the Yugoslavian government broke down Milosevic arose so we’re in that critical point right now and one of the causes of it was in 1933 this thing called the US federal reserve was created i think you know they’ve done a pretty good job of making the rich richer unfortunately the poor May the poor getting poor one of the problems of this is you have to understand that first of all the US Federal Reserve Bank is not us it is made up of a bunch of international rich guys from all over the world the second thing it is not femoral it’s not a u.s. entity if then again a bunch of rich banks from all over the world third it has no reserves there is nothing there and forth it’s not a bank so that’s why when I talk to people I really need to understand the new rules of money which really began to take effect in 1971 when we were allowed to print money for the rest of the world is understanding that this system here is causing too rich to get richer and the poor and middle class to get poor but most importantly the lower middle class is almost getting wiped out high prices volatilities in the market food getting more expensive gas getting more expensive savings getting wiped out home values going around and the reason the troubles have started again is the US Federal Reserve Bank is not us it’s not settled it’s no reserve it’s not a bank so if you understand that then you can start to head your position rather than save money and that’s new rule of money

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