'Rich Dad Poor Dad' author warns South Africans of 'biggest financial bubble' ahead

Be very careful right now as "the biggest financial bubble in the world" is forming, which could send the US dollar - and other currencies including the rand - on the same ill-fated path as the "Zim dollar", bestselling author Robert Kiyosaki told Fin24.

His personal finance book Rich Dad Poor Dad was a global bestseller and he is in South Africa at the moment to promote his new book, Fake.

He believes the first step should be financial education designed to make people smarter with their money. He wants people to be "able to fight what's fake and use what isn't to secure their financial future".  

"Be careful of fake money, fake teachers, fake assets - and also of fake news. Take care of yourself. If you are on the Titanic, at least get a room next to a life boat," he told Fin24 in a phone interview from his hotel room in Johannesburg.

"My point is that everybody can do something. I love gold and silver. I save gold and silver and never spend it."

In his view, the US dollar is a "fake" currency, as are all other currencies in the world today.

"In Zimbabwe, former president Robert Mugabe started just printing more and more money - the same as is currently happening in Venezuela and the US," said Kiyosaki.

"That is why, when I talk to people in Africa, I say they must take proactive actions now to avoid becoming a victim of what could happen to the US dollar. Some are saying we are heading to the biggest financial 'bubble' in world history - the US pension system is going broke."

Kiyosaki said he wrote the book Fake because he has some good and some bad news for people concerned about what the future holds.

"In many ways Fake is a 'graduate school' book, while Rich Dad Poor Dad was an 'elementary school' book. Fake is more complex to address a world that has changed. Everything I was afraid of when I wrote Rich Dad Poor Dad is coming true," said Kiyosaki.

"Each time the US gets in trouble, it just prints more money - instead of fixing problems it rather bails out the rich."

Then there is what Kiyosaki calls "god's money" - to him that is gold and silver. In fact, he still has a Kruger Rand he bought many years ago for $40. Today it is worth $1 400.

"People have to wake up to the fact that they have a choice. Would you rather have a rand or a Kruger Rand? In 10 years' the Kruger Rand will be here, but could one say the same about the rand?" he asked.

"I am not a financial adviser, but I want people to question what they have been told all their life and not count on a government to take care of them."

ZAR/USD
16.81
(-0.26)
ZAR/GBP
21.34
(-0.12)
ZAR/EUR
19.02
(-0.13)
ZAR/AUD
11.73
(-0.21)
ZAR/JPY
0.15
(+0.60)
Gold
1681.70
(+0.13)
Silver
17.39
(+0.17)
Platinum
815.55
(+0.35)
Brent Crude
41.90
(+5.78)
Palladium
1949.00
(+0.59)
All Share
54722.38
(+2.85)
Top 40
50199.80
(+2.79)
Financial 15
11467.53
(+4.66)
Industrial 25
74264.52
(+2.52)
Resource 10
49969.31
(+2.29)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
20% - 226 votes
I am taking a hit, but should be able to recover in the next year
26% - 295 votes
My finances have been devastated
29% - 339 votes
It's still too early to know what the full effect will be
25% - 293 votes
Vote