America, There Is Something Much Bigger Coming !

America, There Is Something Much Bigger Coming !
Sep 9, 2022

Robert Kiyosaki and Raoul Pal warn about the great reset of 2022 in the world economy. They go through several scenarios of how things might play out. There are many references to similar past periods throughout this video, and they are worth paying attention to in order to form a better understanding of today’s macroeconomic environment & trends.

Robert Kiyosaki goes on to say, We either go through a scenario like 2000, which was a typical old school recession where equity markets unwound excesses, the bear market was 18 months or so. And then. The fed, keep cutting rates and eventually it stabilizes. But if we look at 2008, which was the next recession, as soon as the fed used the fed balance sheet, we pretty much stopped in its tracks really quite quick after they did that, they cut rates first.

Raoul Pal says, Didn't really help cuz the banks had seized up. Then they used the balance sheet. Then they did it again in 2010, 12, 16. And then 18 was the fed pivot, the Powell pivot, where they went from hiking to, oh my God, we need to cut Trump yell at the guy. He says, you cut this out. You're killing my economy. That's right.

So inflation had gone up the power, like, well, I need to do this, but the economy cannot take higher rates cuz everybody's so in debt. And everybody's so old. That is the problem. So, so here we are 2022 right. We have employers not going back to work. So all these REITs, real estate investment trust, they own all these office buildings.

And then the never has the fed. I think there's a 30 trillion debt now with 200 trillion off balance sheet and they keep cutting rates and all this. But, but question is, can they keep doing the same thing, given the conditions? Yes. This is gonna take us back to the 1940s in a sec, but you're gonna get destroyed because of the supply chain issues because of COVID and all of this.

Robert Kiyosaki then says, Your wages won't keep up. So we're gonna destroy household net worth and everything's levered. So all the borrowings against houses and all the borrowings against equities and all of the borrowings on top of borrowings, and you're gonna let the collateral go down and blow the entire thing up. But isn't that what they're doing when they say they're gonna pay off the student loan debt, that's forgiveness, that's MMT, right.

Which is coming, whether we'd like it or not. What they're trying to do is reduce the debt. Financial repression, which is you basically have inflation running slightly higher. So you have than interest rates. So what you want is to reduce the real value of the debt. So if you think back to your parents, how much they paid for a house and the mortgage they had, the mortgage seems laughable it's because over time inflation raised the value of the house and the debt doesn't get raised.

So in the end, the debt is nothing. So the way that is this stuff, Make the money less valuable, correct. It makes the debt less valuable, right? So it's okay if you are in debt, but if you are lending money, it becomes complicated. But the point being is you either have a fiscal stimulus, which is, let's say the Republican view, we'll have a fiscal stimulus cut taxes and we'll put some spending.