Rich Dad, Poor Dad author warns U.S. debt downgrade signals 1929 Depression, urges buying gold, silver, Bitcoin

Robert Kiyosaki, author of the bestselling personal finance book Rich Dad Poor Dad, warned on Tuesday that Moody’s downgrade of the U.S. government’s credit rating signals a looming economic crisis, potentially as severe as the Great Depression.

In a post on microblogging site X (formerly Twitter), Kiyosaki said the downgrade means “the US is like a dead-beat dad who is spending borrowed money, without a job, and not taking care of his family.” He warned that a Moody’s downgrade “will probably mean higher interest rates which means a US in recession, which means the economy will slow, unemployment will climb, bond market, housing market, and weak banks may fail…which may mean 1929 Depression.”

Kiyosaki urged individuals to prepare by adopting an entrepreneurial mindset, advising: “I have always recommended people become entrepreneurs, at least a side hustle, and not need job security.” He also recommended investing in “income producing real estate, in a crash, which provides steady Cashflow,” alongside “saving real gold and silver and today Bitcoin.”

Highlighting opportunities in economic downturns, he said: “A depression can be the best time to become rich…if you open your eyes and start seeing through the eyes of an entrepreneur…rather than an employee clinging to job security, steady paycheck and a crashing 401k.” He concluded with a quote from Orison Madden: “Weak men wait for opportunities. Strong men make them.”

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The market has reacted to Moody’s downgrade with increased demand for safe-haven assets. On Monday, gold prices rose amid a softer dollar, while Bitcoin surged past $106,000 on Tuesday, buoyed by growing institutional interest and investor appetite amid global uncertainty.Earlier this week, Kiyosaki warned of a potential central bank crisis, urging individuals to “bail yourself out” by holding gold, silver, and Bitcoin instead of fiat currency. He has repeatedly criticized reliance on job security and paper assets, stating in previous posts that “The rich don’t work for money” and “Savers are losers.”Kiyosaki traces the root of systemic financial instability back to 1971, when the U.S. went off the gold standard, saying: “Each crisis gets bigger because they never solve the problem…a problem which started in 1971 when Nixon took the US Dollar off the gold standard.”

As markets remain volatile, Kiyosaki’s message is clear: to build resilience, “Become entrepreneurs,” invest in real assets, and prepare for turbulent economic times ahead.

Also read | Rich Dad, Poor Dad author Kiyosaki warns of central bank crisis, urges public to ‘bail yourself out’ with gold, silver, and Bitcoin

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