The renowned personal finance expert Robert Kiyosaki says several unprecedented economic factors will precipitate the world into a “gigantic” market crash this month.

The bestselling author of “Rich Dad Poor Dad” says: “This is going to be the biggest crash in world history. We have never had this much debt pumped up… the debt to GDP ratio is out of sight,” according to the Oct. 2 Independent. 

According to Kiyosaki, the crisis will occur regardless of what maneuvering U.S. Treasury Secretary Janet Yellen or Federal Reserve Chairman Jerome Powell may do.

Moreover, Kiyosaki observes that it is the operations of these important institutions that are driving the imbalance. 

In his view, both the Treasury Department and the Federal Reserve were artificially inflating the stock market with decisions disconnected from the reality of the current U.S. economy.

Specifically, they have expanded the volume of money while the velocity of money is plummeting because no one is spending, and their money is staying in savings. 

“So they pump all this money in, prices go up. So it is transitory inflation, but we’re stacked with this massive debt and all it’s done is bump up the stock market and real estate market.”

He adds, “The money hasn’t flowed into the economy, that’s the sad part. So the rich are getting richer, but the poor and the middle class are getting poorer. It’s tragic what’s happening today.”

In this economic scenario, Kiyosaki stated, “You can’t keep printing fake money … that’s not good,” considering that you can only wait for the collapse.

He also warned about the impact that the bankruptcy of Evergrande could have on the country. 

Evergrande, the second-largest developer dependent on the Chinese communist regime, is on the verge of bankruptcy. Its debt of more than $300 billion makes it the most indebted company in the world.

It is one of the most significant international leaders in the real estate industry. Its offices employ more than 200,000 people directly, and it also generates at least 3.8 million indirect jobs.

Its eventual collapse would have serious repercussions for the Chinese economy and also for the rest of the world. Specialists fear that the indebtedness of the real estate sector will also affect the banking and financial sectors.

Finally, Kiyosaki believes that economic crises can also offer enrichment opportunities. 

“But the good news is a crash is a good time to get rich, so that’s why I’m optimistic and I’m very optimistic on gold silver and Bitcoin, not on stocks,” he said.

On the other hand, the drastic economic changes recorded because of the pandemic have substantially benefited the very wealthy, a fact that is highlighted by writer Jon Miltimore.

“Look at where the new wealth went during the pandemic. The top 20% accounted for nearly $10 trillion of the $13.5 in new wealth created in 2020,” he wrote in one of his tweets. 

He added: “Just remember: this happened during one of the biggest expansions of government in history. The powerful look after the powerful.”

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