Robert Kiyosaki, the author famed for his book “Rich Dad Poor Dad,” has issued a stark warning regarding an imminent “global monetary collapse.” He encourages followers to invest in Bitcoin, gold, and silver to safeguard their wealth amidst what he describes as the “biggest debt bubble in history.”
GLOBAL MONETARY COLLAPSE COMING?
Will you be richer or poorer when biggest debt bubble in history bursts?
I recommend owning gold, silver, and BITCOIN if you want to be richer when the Global Debt Bubble bursts.
BIGGEST LOSERS will be savers of fake fiat money and especially…
— Robert Kiyosaki (@theRealKiyosaki) June 23, 2025
Kiyosaki articulated that the forthcoming economic downturn will create significant disparities among investors, labeling the “biggest losers” as those who cling to “fake fiat money and especially bonds.” Conversely, he believes that those who opt for tangible assets will find themselves in a more favorable position.
The author’s cautionary message comes at a time when the national debt of the U.S. has reached a staggering $37 trillion. This level of debt has raised alarms among economists, who warn that it signals an unsustainable fiscal course that could undermine America’s economic supremacy on the global stage.
Economic experts such as Ray Dalio, Ken Rogoff, and Niall Ferguson have voiced deep concerns about a looming debt crisis. Ferguson’s findings indicate that the U.S. now allocates more funds toward debt service—$1.1 trillion—than on national defense, which amounts to $883.7 billion, a trend that has historically preceded the decline of major global powers.
As the debt-to-GDP ratio climbs to 123%, economists caution that failure to implement corrective measures could catalyze a “debt-induced economic heart attack.”
America’s Debt Death Spiral: When Interest Exceeds Defense Spending
The gravity of America’s debt crisis is underscored by its troubling math, which supports Kiyosaki’s foreboding predictions about an impending monetary collapse. Since 2000, the national debt has surged from $10 trillion to over $37 trillion, presenting no viable solution for its resolution.
A particularly alarming trend is the rise in debt service costs, which have now overtaken defense spending for the first time in modern history. Economist Niall Ferguson labels this shift as “Ferguson’s Law,” warning that any major power that spends more on servicing debt than on defense is at risk of losing its global standing.
The acceleration of this fiscal decline became particularly pronounced during recent political administrations, with a 39% rise in debt during Donald Trump’s prior term.
The daunting reality of growing out of this debt is stark when considering the interactions between compound interest and realistic growth expectations for GDP.
We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt.
If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this. pic.twitter.com/lv07wJne1f
— Treasury Secretary Scott Bessent (@SecScottBessent) May 23, 2025
Treasury Secretary Scott Bessent’s hopeful assertion that “we can grow our way out of debt” hinges on sustained economic growth not witnessed since the post-World War II era. Yet, projections from the World Bank indicate a decline in U.S. growth from 2.8% in 2024 to a mere 1.4% in 2025.
Looking ahead, the debt-to-GDP ratio is expected to soar to 140% by 2029, leading to what experts describe as a “death spiral,” where escalating debt service diminishes essential government expenditure on infrastructure, education, and defense.
The ramifications of this fiscal pressure extend beyond theoretical economics into tangible consequences for American living standards and competitiveness on a global scale.
Since the onset of COVID-related monetary expansion, the dollar has lost over 20% of its purchasing power, with food costs rising by 23% and transportation expenses increasing by 34%. These shifts represent a persistent structural inflation that undermines savings and wages.
Currently, interest payments account for 13% of the federal budget, with projections forecasting these payments to reach $1 trillion annually by 2033. Such escalation inevitably leads to cuts in crucial welfare programs, including Social Security, Medicare, and Medicaid, which collectively account for nearly $3.2 trillion in annual expenditures.
This fiscal tightening occurs as the United States confronts escalating geopolitical challenges that necessitate greater defense spending, creating a difficult trade-off between military readiness and fiscal sustainability.
Bitcoin as the Ultimate Hedge Against Monetary Debasement
Kiyosaki’s advocacy for Bitcoin accumulation extends beyond mere investment strategy; it reflects a fundamental insight into how monetary disasters manifest and why scarce resources tend to perform better during periods of currency devaluation.
The inherent supply limit of Bitcoin, capped at 21 million coins, sharply contrasts with the unrestricted money creation prevalent in contemporary fiat systems, leading to a declining inflation rate for Bitcoin.
Coinbase CEO Brian Armstrong describes Bitcoin as a necessary “check and balance” on government deficit spending, potentially positioning the cryptocurrency as a global reserve currency amid ongoing fiscal irresponsibility.
The historical context of currency transitions supports this viewpoint, as every significant currency collapse has followed similar patterns of unsustainable debt accumulation and inflationary attempts to alleviate obligations through excessive money printing.
The Venezuelan experience serves as a cautionary tale, with its debt-to-GDP ratio expanding from 30% in 1998 to over 300% by 2020, leading to hyperinflation that rendered its national currency worthless and caused mass emigration.
While the United States’ status as a reserve currency may provide temporary insulation from dramatic collapse, the underlying dynamics are reminiscent of Venezuela’s fate; exponential debt growth, waning confidence, and rising attraction to alternative value stores are presenting notable challenges.
For average citizens seeking refuge from currency depreciation, Bitcoin’s potential as a monetary safeguard is particularly significant when considering the limited alternatives available. Traditional hedges, such as gold and real estate, often face bureaucratic constraints, storage complications, and risks of confiscation, whereas Bitcoin’s decentralized characteristics and global reach render it nearly immune to governmental seizure.
Recent inflationary trends exhibit Bitcoin’s protective capabilities, as the cryptocurrency reached record highs during periods of heightened government spending and monetary expansion.
The increasing institutional adoption of Bitcoin lends further credibility to its premise as a monetary hedge, with companies like MicroStrategy accumulating over 592,000 BTC as a treasury asset. Additionally, VanEck’s recent analysis posits that a strategic Bitcoin reserve could offset 18% of U.S. debt by 2049 if the cryptocurrency continues appreciating at historical rates.
This projection presents a potential strategy for nations to transcend their debt obstacles through early adoption of Bitcoin.
The events surrounding Kiyosaki’s forecasts and related discussions underscore a growing urgency for individuals and entities alike to reassess their financial strategies in light of prevailing economic uncertainties.
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