[FULL VIDEO] China Trade Deal – Rich Dad Radio Show


(upbeat music) – [Narrator] This is
the Rich Dad Radio Show, The Good News And Bad News About Money. Here’s Robert Kiyosaki. – Hello, hello, hello. It’s Robert Kiyosaki of
the Rich Dad Radio Show, The Good News And Bad News About Money. And once again we broadcast
from beautiful downtown, old town Scottsdale where
it’s either heaven or hell, and right now it’s hell. It’s hot. We have a very exciting
show for you today. So the theme song is,
I Can See Clearly Now. And as you know, one of
reasons for listening to the Rich Dad Radio Show (laughs) is hopefully you can see
better at the end of every show ’cause what’s on the news today is a joke. I mean, it is a joke. I was watching the Democrats
are so after Trump. They wanna impeach him. I’m not Republican or Democrat, you guys. But, they dragged out this guy John Dean and most of you are
probably too young to know who John Dean was but he was
in President Nixon’s counsel during Watergate. And so Dean was the only
guy that didn’t cave into corruption unlike the
Clintons and the other guys. So the Democrats are so desperate, they drag out John Dean to testify in front of the world. They’re going back, is
that 50 years or something? It’s a joke! It’s a joke. And meanwhile, the world is coming apart. And these yo-yos are spending
all this time and money trying to impeach Trump. Now I’m not saying he’s innocent or not. It’s not the issue here. But we have bigger issues at hand. So that’s why we played the song, We Can See Clearly Now and hopefully at the end of this program, you’ll be clearer on what’s gonna come. So our guest today is an old friend, Richard Duncan, he’s not
old, not as old as me. But he’s an author, economist
and he’s an American but he lives in Bangkok, Thailand. And the question is why does
he live in Bangkok, Thailand? So I think he can see the
US and look at the fish bowl of the United States, since
it’s kind of a joke really. And Richard is the author of the book, The New Depression, The Breakdown of the Paper Money Economy. Fabulous book, 2012. His other book is The
Corruption of Capitalism, 2011, that’s another great book. Capitalism is a joke right now. And the first book I read from Richard was The Dollar Crisis, came out in 2003. And the way I came across Richard’s book, I was cruising around Barnes and Noble, no Borders Bookstore which is gone. And Barnes and Noble was just sold. And the bookstores are going the way of the dodo bird right now. But anyway, I was walking
past the business section in Borders and this book
went, tee, tee, tee, come. Pick me up, pick me up. So I picked it up. It was The Dollar Crisis. I read the book. It was exactly everything
I was looking for. ‘Cause Richard is a
classically trained economist and I’m not. And his view on what’s
going on with the dollar and the world economy
especially from Thailand and this China trade world and Mexican and all this other stuff going on today, he’s the man to talk to. And Richard is also the, he has a program called Macro Watch Video. And for those of you who
really want to see the future, subscribe to Macro Watch Video. It’s a video newsletter for all, for everybody to see in
pictures, the graphs and charts or you can look at John
Dean, an old man testifying, a bunch of these cartoons
called, Congress people. And I was kind of waiting for
them to drag out the corpse of Richard Nixon next, you know. I mean these guys are so desperate. I don’t know what’s going
on with this country but we’re coming apart. You know that old saying, Nero fiddled. Well, Rome burned. And the United States
is hauling out bodies to just prove that
Trump committed a crime. Well, that was a long time
ago for Nixon, anyway. But we’re very happy to have
Richard Duncan on the program. And he’s been with the
IMF and the World Bank. And he decided to just
stop looking at that stuff and move to Thailand and now
he speaks to Rich Dad fans from all over the world. And you can reach him, his website richardduncaneconomics.com. Richard, welcome again to the program. – [Richard] Robert, it’s great to be back. Thank you for having me. – Yeah, thank you, thank you, thank you! So we’re hoping for some you know, a look over the horizon. You know, what do you see coming here? I mean, what do you think of all of this, you know we had Mexico, they capitulated. Then we have China trade war. The economy is slowing. And bond yields are crashing. And to the average person, that means we should
watch the Kardashians, that’s what it means. Okay, so Richard, what
do you this is going on? (both laughing) What do you think is going on? – [Richard] Well the main
thing that’s going on is the US is now in, an
essentially a cold war with China. This is probably the most
significant geopolitical development since the collapse
of the Soviet Union, really. And it doesn’t look like
there’s any turning back now. At first, it appeared that perhaps, President Trump was just bluffing, threatening China to, in order to get elected. But after he was elected and
after they passed the tax cuts, then he really started focusing
on the conflict with China. And it seems that it’s not only a matter that he wants to bring trade
back into balance with China but more and more, as more time goes by, this really does seem that it, that Washington wants
to stop China’s rise. That they view China as a growing threat to the United States’ future and its current global dominance. – Well, he’s, they’re
accurate, aren’t they? I mean, that’s what’s gonna happen. That’s what the Tea Leaves are saying. Is the future. – Well, it’s true.
– Yeah. – It’s true that if
China continues to grow at the rate that it has in
the last couple of decades, for another decade, it probably will be the
largest, global super power– – And the other thing
that happened Richard, I don’t know if you saw this. They had a picture of Trump for D-Day, was it June 4th or 6th? Whenever that was. At the same time, as Trump was speaking
at the D-Day Memorial which was touching, Putin and Xi, were having a love fest some place and they were hogging the news
for that part of the world. And then Trump this morning threatened Xi saying you come to the table
and we’ll talk this over. I don’t think you wanna
piss off Putin and Xi. You know what I mean? They’re not gonna, they’ve got egos too. They’ve gotta save face. You can’t keep threatening these guys. – [Richard] Well I think
there’s no turning back now. Now that President Trump has– – Pissed them off. – [Richard] Demand Huawei, one of China’s largest tech companies and the world leader in 5G technology, China is never going to
allow itself to be dependent on the United States. For example, now China is not independent
in producing semiconductors. It still relies on the US semiconductors. Well, we’ve gone too far
down this trade war road now that China is never going to forget this. And as soon as they possibly can, they’re going to become
completely independent from us in every respect as quickly as possible. And if President Trump continues
to increase the tariffs as he’s threatening to impose
them on another $300 billion worth of Chinese goods, then China’s going to become, is going to become increasingly hostile and start taking actions that
will completely eliminate all US corporate profits that are currently being made in China. So, this is already having
a very severe impact on the global economy.
– Also– Yeah so, one of the
impacts is the crashing of the bond yields. Now as an economist,
again you worked with IMF and the World Bank, classically
trained at Vanderbilt. What does crashing for the lay person, what does the crashing of
the bond yield mean to you? – [Richard] So the bond
yield is the government, the 10-year government bond yield, is what everyone looks at. It’s the interest rate the government pays on its 10-year government bonds. Now in May, it plunged
sharply not only in the US but in the other major economies. And the reason is because now, investors realize that
corporate profits are going to be hit. First they’re going to be hit
because the global economy is slowing very sharply and secondly, they’re going to be hit because
China is going to punish US corporations doing business in China, like Apple and Boeing and
Caterpillar and Starbucks. And so the investors have
started to take their money out of the stock market
and what did they do? They bought bonds and that
pushed up the bond price and that drove down the
bond yields very sharply. And at the same time, given the weakness in the stock market, the Fed has had to announce that its, hasn’t announced it but has
started giving strong hints that it will soon begin
cutting interest rates in order to try to
support the stock market. And that’s worked. The stock market fell about 6 1/2% in May. But after the Feds started
giving out these hints that it’s going to begin
cutting interest rates, it’s recovered a significant
amount of that since then. So, we’re now moving from
a period where the Fed was increasing interest rates to a period where they’re going to have to begin cutting interest
rates very sharply. That’s why we can look forward to, and when the Feds cuts interest rates, then other factors being
the same, the dollar weakens because people who own dollars, if the interest rates and dollars go down, they’ll earn less money. So they’re encouraged
to sell their dollars and buy some other currency. So if the Fed cuts interest rates and the dollar tends to go down and when the dollar tends to go down, then gold tends to go up. So, that’s one positive
note for the gold bucks with the Feds now cutting rates and likely to continue cutting rates, other things remaining the same, it seems pretty promising
for the outlook for gold. Of course, gold has done well over the last couple of months. – Well, back in 2000, it was
250 bucks and now it’s 1300. And the people who were
anti-gold said it’s a dead metal. I said, well yeah. 250 to 1300 is not a
bad run in 10, 20 years. Hey a quick question as an economist, you know we talked about this. What would you advise President
Trump to do right now? – [Richard] So I can appreciate
Washington’s concerns about China from various angles. But rather than, rather than simply declaring a trade war and trying to stop China’s growth. You know, the reason China
has been so successful in a large part is because
they have a strategy, they have a government with a plan. And the plan is to
invest in new industries and new technologies as
aggressively as they possibly can. And this has been working
out fabulously for them. So rather than having an
all out trade war with China and crashing the global economy and crashing the stock market and crashing the US economy and throwing millions
of people out of work, I would suggest to President Trump that the United States should
invest much more aggressively in new industries, 21st century industries on a very large scale. There’s no reason the United
States couldn’t invest trillions of dollars
over the next 10 years in all the leading industries, artificial intelligence,
genetic engineering, biotech, nanotech,
neurosciences, robotics. And if we did that, we
could out-invest China. We would invest more than them and we are better at
innovation then they are. – So– – [Richard] But we would regain
our competitive advantage. – So– – [Richard] And we would
continue to dominate the global economy through investment. – Yeah, Richard, you
know, I travel the world. I’m always going around the wold. Every place I see, I see
exactly what you’re saying. The Chinese are there, they’re investing. You know, I was in Cameroon
and they had a trenching, these roads, they put
fiberoptics cable in, in the isthmus of the Panama Canal. They’re planning on putting in a new canal for super ships to go through them. And what is the US, and so
this is my question to you. Is the United States just
exporting fake assets, like credit default swaps
and all this stuff and money and lending money to third world nations? Are we just exporting fake money? ‘Cause that’s what I see. I don’t see us investing. You know what I mean? I mean I was in Zimbabwe, they
had these huge Chinese camps. Now, the Chinese don’t take any of the, none of the money in
Zimbabwe goes to the economy. But at least the Chinese are
investing in what you call industry and business and infrastructure. Do we do that, the US? – [Richard] Not on the
scale that China does. No where near the same scale. – So we’re toast. – [Richard] Well, we still
have one great advantage over China. The Americans earn a lot more
money than the Chinese do. So they have more purchasing power They can spend more money. China is very dependent on selling things to the United States. China’s exports to the
US are about more than, approaching $550 billion a year. They need to sell things to the Americans and the Americans have
the money to buy things. The Chinese on the other hand, the per capita disposable income, the average person’s disposable income is less than $10 a day. So the Chinese, the
advantage the Americans have over the Chinese is, we
have the purchasing power. – Okay.
‘Cause our wages are higher. – Okay, once again, it’s Robert Kiyosaki of the Rich Dad Radio Show, The Good News And Bad News About Money. Our guest is a long time
friend, Richard Duncan. He’s the author of The New Depression, The Breakdown of the Paper Money Economy and he’s also, his website
is richardduncaneconomics.com and his special, he has Macro Watch Video because it’s hard to talk
about what’s going on without pictures and the thing I love about Macro Watch Video is pictures. He has all of these
charts of what’s going up and what’s coming down. So for those who wanna
see what’s happening and not watch our Congress
trying to impeach Richard Nixon. Oh no, was it Donald
Trump or Richard Nixon? But anyway, we’re so far behind the times in America, stand up and pull your
head out of your butt, that’s what I say. So when we come back, we’re talking more to Richard Duncan about
what does this mean. We’re going to talk about you know, in some countries right now, you put your money in the bank and they charge you
money to keep your money. They’re negative interest rates. Or zero interest rate policy. But also now, with the
bond yields crashing, there are certain countries now, if you buy a bond, they’re
gonna charge you money. In other words, you use to make
money if you bought a bond. But now, they’re gonna charge you money. And what the United
States is attempting to do right now is keep the interest rates low so we can push the stock
market into a bubble which it already is a bubble. So when we come back, we’re going to be talking
again to Richard Duncan to figure out what you can do to either profit or not get crushed and what’s coming up over the horizon. We’ll be right back. Welcome back, welcome back. Robert Kiyosaki, the Rich Dad Radio Show, The Good News And Bad News About Money. And today our special
guest is Richard Duncan. He’s the author of The Dollar Crisis which came out in 2003. I read that book and he’s
a very intelligent man ’cause I agree with him. Once again, you can listen
to the Rich Dad Radio program any time, any where on iTunes or Android. And all of our programs are
archived at richdadradio.com. We archive our programs because
repetition is how we learn. This is a very important program. So if you have a friend, family member or a business associate who
needs to listen to this, simply go to richdadradio.com. And listen to this
podcast of Richard Duncan talking about what he
sees coming in the future now that we have this trade war going on all over the world. And what is it gonna mean to
you and me and our future. So Richard, can you go back to the
bonds one more time? ‘Cause that’s always a tricky thing. So, did Germany drop their
interest rate on their bonds so it’s not sub-zero? – [Richard] Well so, in Germany now, if you bought a 10-year government bond, and hold it for 10 years until it matures, you will be guaranteed to
lose a little bit of money. You’re at 23 basis points, is the yield on the 10-year
German government bond. And the same is true in Japan. You will also lose 10 basis points a year on Japanese government bonds,
on 10-year government bonds. So what has happened is, it wasn’t that the government reduced the bond interest rates, it’s the market pushed up
the bond prices so high, when bond prices go up,
bond yields go down. And now, after 2008 so much
paper money has been created by the Central Banks around the world, that that money has to go somewhere. And it either, it goes into stocks, it goes into property
and it goes into bonds. But when the stock market becomes afraid, people sell stocks and buy bonds. And that’s what happened in
May all around the world. People sold stocks and bought bonds and that pushed up the bond prices and pushed the bond yields
down to extremely low level so the US government bond is
yielding a whopping 2.15% now. That’s really great compared
with England for example which is less than 1%. And France is barely positive
and Japan and Germany are actually negative yields. So, yes there’s been a
crash in the bond market. – So does that– Does that mean?
– To large de– – More money will come
into the US bond market? I mean, is the US bond market rigged or is it again investor
driven, the pricing? – [Richard] Well, I wouldn’t
say that it’s rigged. But when you have the Central Bank creating three and a half trillion dollars as the Fed did between 2008 and 2014, then with that much additional
money sloshing around, all those dollars have to go somewhere. So it pushes up bond prices and it pushes down the
interest rates on bonds. And now, just in the last few weeks, the Fed has been hinting very strongly that it’s going to begin
cutting interest rates soon. And the market expects the Fed to cut interest rates
very soon and repeatedly. And what this shows us is that the Fed is a hostage to the stock market. Now what that means, what I mean by that– – So they’re not independent? – [Richard] Well… Their goal, no, they’re good people. They’re goal is to try to
ensure maximum employment and stable prices. Now, to ensure maximum employment, the problem is there are no
drivers to the US economy, no strong drivers. For decades, credit expanded
very rapidly in the US every year and it was the credit growth that drove the economic growth. But since 2008, the credit, the households
just don’t have enough money to borrow and repay their debts. And so the credit growth has been too weak to drive the economy. What has been keeping the US
economy out of a recession is the rising stock market and
the rising property market. So as long as the stock
market keeps going higher, then that creates more wealth. People feel richer and that
creates a wealth effect and they spend more money. So, right now the total wealth
of the American households, in other words, the total
net worth of the Americans is $108 trillion. That’s up almost 60% from
the 2007 pre-crisis peak. So there’s been this
extraordinary surge in wealth as a result of the Fed
cutting interest rates to very low levels, one time to zero. And also quantitative easing in the US and all around the world. So as long as the asset
prices keep going up, that provides the fire power
that allows the consumers to keep consuming and that’s
then the thing that’s kept the US economy out of recession. If the stock market starts to go down as it did in December
and again last month, then the Fed is forced to react. The Fed is forced to change its policies and adopt policies that will make the stock prices go higher– – Which they did because, which they did because the stock market in the last few weeks has been up and up and up and up and up and up. And my question to you Richard is, because we’ve been talking
about this for years, how long can they keep this show going? – [Richard] Well, the
reason the Fed has been able to get away with creating a lot of money is that there’s been no
inflation in the United States. – Well, that’s what they say but they don’t measure the inflation like food prices have gone up, housing prices have gone up and education has gone up. – [Richard] Well, certainly
some prices have gone up a lot. – Yep, but they don’t measure that. Anyway, I just wanna know, I mean, can you know, there’s talk now in America that they can just keep printing money. As an economist, again you worked with IMF and the World Bank, how long can we keep, if we can just keep printing money, I’ll just start writing checks. – [Richard] Well, you know
in the past in America, when the US was a closed economy, say up until 1970, if the government spent too much money or if the Fed created to much money, then suddenly all the Americans had jobs and all the factories were fully utilized, and that led to high rates of inflation. Wage pushed inflation. But all of that changed
in the early 1970’s and especially in the 1980’s
when the US started running these extraordinarily large trade deficits with the rest of the world. And once the US started allowing these enormous trade deficits to occur, what that meant was the
government could spend more and the Fed could create more money without causing inflation because we didn’t have
to worry about the number of Americans working and the
number of American factories, their capacity. We then had a global economy. The global economy now
has seven billion people and two billion of them
live on less than $3 a day. And China has enough industrial capacity to last for a generation
without building anymore. – And that was– – [Richard] So what that means– – And that was your
book The Dollar Crisis, was how much capacity China has, how much capacity the world has. So this idea of you know,
getting a high paying job is actually an oxymoron. ‘Cause they can’t just keep this up. – [Richard] Well, so
but what has happened is because of all of this cheap
labor around the world. – Right. – [Richard] And excessive
capacity around the world, that means the government
has been able to borrow and spend very aggressively
and the Fed has been able to create a deal of money. And we’ve had very low
levels of an inflation. – So my question is
can we keep doing this? That’s my question. – [Richard] The answer is
yes, we can keep doing this because the global economy
has enormous excess capacity of labor and industrial capacity. As long as globalization persists. But if globalization breaks down, for example through an
aggressive trade war with China, then suddenly we’ll be back living in President Johnson’s
America in the late 60’s where government spending
led to very high rates of inflation and then in the early 70’s, we had double digit inflation because the government was
spending too much money and the Central Bank was allowing too much money to be created. – So inflation is possible? – [Richard] Inflation is
increasingly likely now that we’re putting 25% tariffs on $250 billion of Chinese goods and threatening another
$300 billion, as well. – Okay so let me ask you this question. So the price of oil is crashing right now. What does that mean to the world economy? I mean, isn’t the price of oil because they’re forecasting
a recession coming? – [Richard] That’s right. The reason oil prices are dropping is because the global
economy is slowing so much. And so suddenly, so suddenly there’s less demand for oil. And even though the US is
trying to take all of Iran’s oil out of the market to push prices higher, even despite that, the
oil prices are going down. And it’s interesting to
compare the price of oil with the price of gold. Normally, they move together. They tend to move together. What we’ve seen over the
last month is gold has moved significantly higher and oil
has moved significantly lower. And that’s because it’s
reflecting the weak demand for oil and the fears of the global
economy is about to go into a significant recession which is likely if this trade war persist. – So, as let’s say an
independent person right now, what type of action would you say the average person should do? Because you know, Trump’s not
going to listen to anybody. So, what would the average person do? – [Richard] So I think
the average person needs to focus on his or her own business and make sure it’s as
recession proof as possible. People need to have a business which they can make money
in good times or bad times. That’s the highest priority. And beyond that of course, how individuals invest, depends on how much money they have. A billionaire is going to
invest very differently than someone who has a savings of $25,000. But for an average individual, personally, I still believe
investing in rental property is a good decision. You can, mortgage rates
have dropped down again to quite low levels. You can lock in a 15-year mortgage and buy a piece of land
with a house on top. And you can rent it out. And if you’re careful, you can accumulate a
portfolio of houses with land. The reason I don’t recommend condominiums is because there’s no limit
as to how many condominium can be built. But there is a limit to how much land there is on this planet and
it’s not going to increase. So, if we have inflation, then gold will go up but
land will also go up. – Okay.
– In the meanwhile, you can rent out your
house and have cash flow. – Okay. Well, that’s kind of what I’ve been doing for a long, long time. Hey, last question. What do you think of the switch of America becoming a socialist to
Marxist country right now? – [Richard] Well so, I think there’s a lot of misunderstanding and misuse of the concept of socialism. I mean capitalism was
a system that occurred during the 19th century when there were essentially no laws and business people could
do anything they want including you know child labor
and putting children in mines and if you got old and you couldn’t work, you had to eat cat food
until you starved to death. Well that’s not the system
we’ve had in the 20th century. In the 20th century,
we’ve had social security and unemployment insurance. And the government has
been directing the economy since at least World War II and really before that. – Yeah, that’s what– – [Richard] So we haven’t
had a socialist system for you know, something not far off, at least 75 years and–
– Right. – [Richard] So we already
have a socialist system. Now, the call for, what we’ve
seen in recent years is, there’s been a huge increase
in income inequality. The wealthier becoming, they say the three wealthiest Americans have as much money as
the bottom 50% combined. And it’s growing every day. The rich are becoming
very significantly richer. So, if this continues, you will have individuals who can and banks who will have so much money, they can just buy senators to have their own personal senator and the normal Americans
will have no representative in our government anymore. And we will no longer have a democracy. We’ll have something
closer to an oligarchy. Or we will be regressing
back toward the way things were in the 1800’s and 1700’s when there was a nobility and
everybody else was a serf. – So let me ask you this– – [Richard] Way too far
in the wrong direction. – Right. – [Richard] Right now,
it’s swinging too far in favor of the very wealthy. And things can be done to
improve everyone’s lifestyle. As I have suggested earlier, if our country invest more aggressively, if the government invest in new
industries and technologies, this will make the rich so much richer but it will also make the
middle class so much richer and the poorer so much richer and it will make everybody
healthier and live a lot longer. So we don’t have to fight
so much about dividing up the pie that we have now. We can make the pie 10
times bigger than it is. – Right. – [Richard] And that’s the
approach we should be taking. – Well you’re a very optimist, Richard. Very much an optimist. I’m more of a pessimist, most of the time. So, once again, our guest
today is Richard Duncan. He is a dear friend for all these years. I highly suggest you subscribe
to his video newsletter, it’s called Macro Watch. And for all Rich Dad listeners, you can go to richardduncaneconomics.com. And you just put in the coupon code RICH and you get 50% off this
most valuable, valuable, valuable, valuable information looking into the future. If you really want to prepare
yourself for the future, please subscribe to Macro Watch Video. 50% off for all Rich Dad listeners and just use the code RICH
and you get that 50% off. So Richard, I wanna thank you
for always contributing to us. We could go on for hours
and hours and hours. And good luck out there in Thailand. – [Richard] Thank you Robert. It’s always fun talking with you. Let’s do it again soon. – We will, we will. As it changes, we’ll be
talking more. (laughs) So, lastly, when we come back, we’ll be going to the most
popular part of our program which is Ask Robert, we’ll be right back. Thank you again, Richard. Welcome back. Robert Kiyosaki, The Rich Dad Radio Show, The Good News And Bad News About Money. Once again, I’ll thank Richard Duncan! Author of The New Depression, The Corruption of Capitalism and The Dollar Crisis. Get those books, read them. You may even actually learn something, what they don’t teach you in school. Richard Duncan’s website
is richardduncaneconomics and his special offer
is 50% of Macro Watch which is really a bargain. It’s a newsletter but for
all Rich Dad listeners, go to richardduncaneconomics and enter the coupon code RICH. And I don’t take any
commission off of that but if you don’t subscribe to that, you’re really, really foolish. Because I look at it all the time ’cause I like to look
at pictures, not words. So you can submit your
questions now to Ask Roberts and all your questions go to
[email protected] And once again, you can
listen to Rich Dad any time, anywhere on the iTunes or Android and all of our programs are
archived at richdadradio.com. So, if you have friends,
family and business associates, please have them listen to
this podcast and discuss it. ‘Cause what Richard is talking about, he and I have been talking
about it for years, every since I came across this book, The Dollar Crisis. And once again, Richard is a
classically trained economist from Vanderbilt and he’s worked with IMF and the World Bank and he
advises private hedge funds. So, Melissa, what’s the first
question for Ask Robert? – [Melissa] Robert, our
first question today comes from Steven in San Antonio, Texas. Favorite book, Rich Dad, Poor Dad. He says, Robert, you always
say savers are losers. I’m going to ask that you
please explain this to us again. Just trying to fully grasp
this different mindset. – God bless you my child, God bless you. I mean that’s probably one
of the most important things you can get from my work here. And everybody says you should
save, save, save, save, save. Are you nuts? Are you nuts? Did you listen to what
Richard Duncan was saying? They’re printing money. And they’re dropping interest rates. Think about that for a while. I mean get together with a friend, probably your idiot
brother-in-law and discuss it. What does printing money and
dropping interest rates mean? It means your savings are worthless. F’ing worthless and you still save it. You’ve got to be nuts. And the second thing is, if they keep printing money
and they go into hyperinflation which happens many, many
times all over the world. It’s when money, when
there’s too much money then hyperinflation means your
savings are worthless, too. So right now, your savings
are buying less and less, are worth less and less and less. You keep in the bank. And then if there’s hyperinflation, you know, what happened in Zimbabwe, and it’s still going on in
Zimbabwe, I was just there. A boiled egg was like $50 trillion. Because they can print money. And since 1971, the United
States and the rest of the world has been printing money. So, why would you be an
idiot and listen to an idiot and save money? That doesn’t make any sense to me. See, I’m gonna put it in the
bank and I’ll get 0% interest at the same time they’re printing money. That doesn’t many any sense. Now if they stopped printing money, maybe then your money
might be worth something. So you gotta pay attention. So that’s why subscribe to Macro Watch from Richard Duncan, economics, so you can figure out
what’s going to happen next. But with this trade war right now, what’s happening is the US
dollar has to come down in value. They’re gonna screw… You know, it’s not, you could blame Trump but the dollar has to get weaker. So we can export. If we’ve a weak dollar,
we can export to China, to Japan, to Canada. So we can export. We have a strong dollar, we can’t export ’cause our goods are too expensive. So all you foolish people
out there who went to school and you got a job and you’re working hard and you’re paying your taxes. And you’re voting Republican or Democrat or Socialist or Communist, and you’re saving money,
you’ve gotta be crazy. So that’s why I was asking
Richard several times, is what does a collapse of bonds mean? That means people are coming
out of the stock market, they’re going into bonds
and the interest rate, the yield they call it, in savings it’s called the interest rates, in bonds it’s called a yield. So let’s say, five years ago, you got 10% yield on your bond. Today, it’s -.25%. That means, you put your
money in for 10 years and you get less back. But you get less back anyway ’cause they’re gonna keep printing money. Now if they stop printing money, we have another problem. But that’s why you gotta pay attention. That’s the most stupid
thing you can say to anybody is save money. Why would you save money
when they’re printing it? And the value of your money goes down when they’re not paying
you anything for it? They don’t want your money! They want people like
me who can borrow money. So I mean I just can’t believe
people ask those questions. And I know it’s pretty common. But that’s why this Rich Dad company was formed years ago. Another thing is my latest
book is Fake, Fake Money, Fake Teachers, Fake Assets. Get that book, read it, you’ll
understand why I’m so adamant because my whole financial education besides with Rich Dad began you know, fake starts with me flying, behind enemy lines to go look for gold. And Marines aren’t the
brightest guys on Earth so I’m behind enemy lines
trying to negotiate for gold. I don’t even know what gold is! This is 1972, six months
after Nixon took us off the gold standard. That was my education. I went home, I got. So I’m negotiating with this
tiny little Vietnamese woman. You know, I don’t think
she went to Harvard or Oxford or Stanford. And I’m trying to buy gold from her. And let’s say gold was
$50 an ounce at the time. And I tried to buy it for $40. She just laughed at me. She was laughing at me. She says, why would I sell you gold when it’s worth 50 on
the international market? And then I realized, gold
has been money forever. Since Earth was formed. Gold and silver are God’s money. So that’s what I write about in Fake. So that little lady, God bless her man, I owe her a lot ’cause she
changed my entire life. So my air craft carrier
sailed into Hong Kong and I finally bought my first gold coin. It was a South African krugerrand. And I paid about 50 bucks for it. And I still have that krugerrand today. I don’t sell stuff. I don’t flip except when they offer me too much money for it, I will flip it. But anyway. That South African krugerrand
today is worth $1500. I paid $50 for it in 1972. And today, I can get
approximately 1500 bucks for it. Now, did the krugerrand get bigger? Or did the value of my money go down? That’s the question. It’s not rocket science. Another thing I found out in 1972, it was illegal for Americans
to own gold in ’72. Imagine that. So I have to ask myself,
why does a government not want me to own gold? And that’s when my
whole education started. The little ole Vietnamese
woman started getting me going. I started studying. I started understanding. And then my friend, Jim Rickards, you know, he wrote the book, The Road To Ruin and all this, he says, simultaneously in 1970, they stopped teaching
gold in business school. Because they wanted to
get everybody off of gold and into fake money. So that’s my book, Fake Money,
Fake Teachers, Fake Assets. They’re all the same thing. You cannot do this without fake teachers and Wall Street running the show. I’m not saying they’re
good people or bad people. But you’d better stop saving money and listening to your mommy and daddy. Save money, save money, save money. ‘Cause as long as they’re printing money and they’re paying
nothing on interest rates, you’re the biggest loser
of all when you save money. So thank you for that question. Once again, you can submit
your questions to Ask Robert at Rich Dad Radio. Thank you to Richard Duncan
and thank y’all for listening to this Rich Dad program.

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100 thoughts on “[FULL VIDEO] China Trade Deal – Rich Dad Radio Show

  1. You guys kept asking us to record The Rich Dad Radio Show so due to popular demand… Here you go! Are you excited?

  2. Most western countries financial system is fucked. love capitalism but it got too corrupt. We should negotiate with the Central banks to clear debt, but im dreaming

  3. I wouldn't mind China becoming the next hyper-power if they did a 180 on their stance on individuality and human rights– and if they gave people the right to bear arms.

    But that probably ain't happening, so the entire world should be a lot more scared about it than they seem to be. "Oh yeah, they're our best friends and shit; everything is made in China!" Bullshit! Look up: Masanjia re-education through labor camp.

  4. At least China is investing in infrastructure in Africa. Besides building American oil companies, can anyone point me to any infrastructural investments by the USA in Africa.
    Just my thoughts.

  5. Robert, you are still confused about the relationship between bond yield and bond price.
    You understand how Capitalization Rate works for the Capitalized Property Value (CPV) for income properties.
    The dollars returned by a bond are fixed, just like the Net Operating Income (NOI) of an income property relative to CAP rate and CPV price.
    So, when someone says "bond yield", you think "CAP rate", and when someone says "bond price", you think "CPV price".

  6. I have a dream to rent apartments to the domestic violence survivors men and women of Portland Oregon sleeping on the street please donate to help me get apartment building

  7. The only thing Trump did was give us TV dinners instead of food stamps down south and grab them by the pussy sex offender president who don't have one raise your hand

  8. I am sure that more investing means more inflation (more printing of currencies) by central Banks in each country. I understand that more ideas lead to will bring more wealth, which will allow inflation to go on far more longer than it should. But, none the less it still ends the same.

  9. President Nixon removed America from the Gold Standards Act in 1971 due to all other countries returning their Dollars for Gold.

  10. Apple is moving a lot of there work capacity out of china to a different country in Asia. So who knows. Whats really going on.

  11. Robert sounds like it’s time to get out of your tax haven (oil). With electric cars flooding the market in the next 10 years, oil will crash.

  12. Robert, thank you for talking about FAKE. We all need to read more so we can understand how to prepare. For example, today, I went to see Dana in Austin to discuss REAL money. It's funny how my REAL education began after I graduated the second time. Thank you for all.

  13. Favorite book Richest Man in Babylon " what do you think about going cash less? https://finance.yahoo.com/news/bank-of-america-brian-moynihan-cashless-society-210717673.html do you think this will hurt investing? do you think this will hurt holding gold or silver?

  14. thought this guy was smart until he started singing praises to socialism. We DO already have socialist system already & it has been here for decades, that is pretty much what has been screwing everything up. Used to be called communism until they got banned.. then they called it socialism, then democratic socialism but it is all the same marxist nonsense. Should have known from the book title "corruption of capitalism" LOL

  15. “Is the United States just exporting fake asset. Like credit default swaps,and all this stuff. And money and lending money to third world nations. Are we just exporting fake money. Cause that what I see I don’t see us investing”
    (13:42)

    "I think the average person needs to focus on his or her own business. Make sure it is recession proof as possible. People need to have a business that will make money in good times or bad times.That’s the highest priority.” (27:46)

    Mr. K you always have some insightful questions. Thanks for delivering this insight on the current economic state. A person like me will get hit the hardest if I don't prepare for the adjustment. Thanks.

  16. Holding a war is not working in the trade. Money talks, that's what everybody is saying. I wonder what the real thing is and what the real world is. You know, the truth was hidden by the government.

  17. I'm so happy you have your own Radio Show. I listen to you everyday. Thank you for recording and posting the show. ❤

  18. Is it wise to buy properties now, when the recession is expected, with possible decrease of all assets value?

  19. Obviously no MSM has or will ever address the destruction of Chinas trade partners by US regime change , dive bombings and assassinations. All they care is the IP angle and human rights abuses,

  20. Robert keeps cutting the economist off when he says things he doesn't want to hear lol, makes me unsure if he knows what he's talking about. "They don't measure inflation".

  21. Richard should have just talked and Robert's questions could have been tabled when we return to the Marxism system…Wow!

  22. my cashflow the investment game stopped working. I havent used it in a few months. i went to play it today and it wont open. i checked the app store and it looks like it's no longer available. can you give me any onsite on this or guide me to someone that might be able to help me ?

  23. Great guest speaker. Rather than fighting over partisan issues he brings attention that we already live in a socialist society. Make the pie bigger rather than fight over how we divide the pie.

  24. Excellent guys, please keep doing it, awesome. Robert you changed my life in the last 3 years, many, many thanks from London, UK

  25. If you don't save money, what are you going to do with it? There's only two choices it seems. Buy something with it or save it. Buy what?

  26. US keeps printing money, China will own the world. There's a trick, China buying/maintaining property around the world. Because 'maintenance' implies ownership. This is why the law is quiet on 'protected tenants' (=long term fixed rent tenants) regarding fixing and maintenance of the property. 'Adverse possession' same thing, act like the owner for 12-15 yrs then you are the OWNER! Extinguishes title! Trick is neighbors have to see you cutting the grass, maintaining, fencing off the place for at least 12-15yrs.Your body is your property, property implies exclusive use, fencing off best thing.

  27. I’m a 22 years old man working in store with not much money to support in my life I don’t know what to do I’m going in circles with no step ahead to the future, moving around house to house with no home to stay and I’m not a criminal or anything I don’t know what to do where to star what’s right or wrong where to go and where not what and what not to do, I grew up parentless with not much teaching even in school they all care about is do the homework for the day if I can get any help I would gladly thank you

  28. Have an strong dollar, then others country with weak currency will back up their currency an economy in USD, it is not a bad idea. If USD became weak, they will use gold (and similar things), and the US will have least power.

    I borrow USD and buy cryptocurrency, and everything have been good, and will be better.

  29. The pressure over china can be introduced if other countries boycott china products, projects and services out of china.

  30. 31.57, this man is so fucking right when it comes to the economy and consequences. Never heard of the man, gotta go see what else he has to say. I do agree what he said about food, but I wouldn't go Socialist on anything else.

  31. Because of the poorly thought out way of this trade war, the U.S. can't win in the long term. China's market is too big and necessary for U.S. firms. For example, China Mobile, the number 1 wireless provider but not the only, has over 700 million subscribers. Now China knows it can't rely on a U.S. supplier for anything. Wouldn't be shocked to see Chinese developed and competitive semiconductors, wireless operating systems, jumbo jets, etc. emerging sooner than thought. Also wouldn't be surprised to see China slowly push a nationalist "Buy Chinese" mantra over the same time frame. If, or when, all this happens, U.S. firms likely to suffer greatly.

  32. Robert I suggest you invite Tom Woods on your show to explain the difference between Capitalism and Socialism. Robert has it wrong.

  33. 1st mistake is assuming that you can invest, or out run your competition by investing.
    Unfortunately there is a merge of calamities.
    The old but new science is about to change everything.
    And dominance will need to be all encompassing, and everything tracked, for those that understand the science can operate with dominance.

    Armies don’t Align for War, they Align for the Great Crossing.

    End of Line

  34. I love you Robert thanks for helping me out in life, I’m only 34 never had financial Educacion until I met you. I’m about to invest all my money and it’s all thanks to you .

  35. So if all the predictions come true that China will be this colossal successful economic power, does it mean all the talk that Communism was inefficient was bullshit? That would mean years of propaganda I've been subjected to no longer applies (or something like that).

  36. Hello! Thank you for the video!
    I have a big surprise! Is Robert Kiyosaki comming to Mexico City? A company is promoting him everywhere in the city, I have prove of the advertisement… Because we want to assist and meet him… We are not sure if that's true. Thank you for your answer

  37. I get 2.15% from my savings account 🤣. When you cant go to stocks or bonds where will you go? Tangibles! Silver/ gold and like my grandfather always told me "theres only so much dirt in the world"

  38. Listening to this session over and over again, the part that Mr. Duncan states the U.S. is going to go back tonthe 1800s or 1700s is a scary notion. Mostly.for Black People.

  39. Saving is often conflated with investing. You need to save to invest, so distinguish saving cash for the sake of keeping it in a low interest account that is losing value via the printing you mention and saving only as a precursor to invest in something like real estate.

  40. Gold requires Human Capital to Mine, Refine, Mint, Market and Secure. Unlike the Funny Money that has no backing to even be called A Medium of Exchange. There is no means of the Oligarchs creating Gold (or Silver) out of Thin Air, like Federal Reserve Notes (DEBT).

  41. Robert is a republican hes just afraid to admit it. Grow some balls. Robert isn't being honest. Trump has commited many crimes and saying they happened a while ago doesnt make him not guilty. Trump is the main reason all these white terrorists are coming out with manifestos against immigrants and naming trump as their inspiration. Hes guilty and notice no one ever says hes innocent yhey just talk about Clinton with their whataboutism. Rob is brainwashed by fox.

  42. What is the Australian bond rate ? Anybody know .Our property market is dropping after a boom . Interests rates have been on hold for years .

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