A stern new warning to American citizens was issued by Robert Kiyosaki, author of the popular book "Rich Dad Poor Dad," highlighting the possibility that the US government may once again make private ownership of gold illegal and proceed with confiscations. For this reason, he disclosed that he now chooses to maintain his reserves of gold and silver in Swiss vaults, far removed from American jurisdiction.
Alarm over the $39.6 trillion debt
Kiyosaki sounded the alarm as US federal debt reaches the staggering amount of $39.6 trillion. As he noted in a post on platform X, American debt stood at approximately $9.5 trillion prior to the 2008 financial crisis, yet reckless money printing has propelled it to current levels. Despite the fact that the US government prints fiat money worth nearly $1 trillion every 90 days, its purchasing power is collapsing. "The rich do not save money," Kiyosaki emphasizes, explaining that he has systematically bought silver since 1965, gold since 1971, Bitcoin since 2012, and Ethereum since 2022. Precious metals and cryptocurrencies, due to their limited supply, function as a primary hedge against the dollar's devaluation.
The historical precedent of 1933
Kiyosaki's warning regarding potential confiscations is grounded in the historical precedent of 1933, when American President Franklin Roosevelt, amid the Great Depression, signed an executive order requiring Americans to surrender their gold to the state in exchange for dollars. The goal was to increase the money supply under the gold standard of the era. Private ownership of gold was permitted again in the US only in 1974 by President Gerald Ford. Although there is currently no official indication that the US government is planning something similar, Kiyosaki insists that the largest market crash in history is approaching, recommending allocations into real assets.
Americans' share of debt increases by $10 per day
Furthermore, the chief executive officer of MassMutual, Roger W. Crandall, has commented: "Ten dollars a day. That is how much your share of US debt increases every day," adding that "for taxpaying Americans, it is over $25 a day." The escalation of national debt can impact everything from currency valuations to corporate borrowing costs, not to mention the damage it can cause to workers, consumers, and overall economic growth.
Phoenix Capital: The beginning of the end for the US
Meanwhile, a recent analysis by Phoenix Capital emphasizes that the image of the United States as an unquestioned superpower is exhibiting increasing cracks, both in the geopolitical and economic arenas. As pointed out, beyond military operations and international initiatives, what markets ultimately evaluate is a country's capacity to enforce its strategic choices and preserve its financial power. And at this level, recent developments raise serious questions. The primary concern centers on the fiscal condition of the United States. US public debt is on a trajectory toward $40 trillion by November, while the debt-to-GDP ratio has formed near 120%, a level signifying that total debt now exceeds the annual output of the American economy. The report recalls that historically there are only three ways to handle excessive national debt: default, fiscal consolidation and repayment, or reducing the real value of debt through inflation and currency devaluation. According to Phoenix Capital, most major economic powers throughout history initially selected the solution of inflation before ultimately arriving at an inability to service their debt.
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