By Bitcoin Bull Robert Kiyosaki Warns Followers To Withdraw Cash From Banks Before “Biggest Crash In History”
Last updated: December 11, 2023 03:36 EST
. 1 min read
Robert Kiyosaki – author of the famous finance book Rich Dad Poor Dad – warned his followers on Sunday to take some cash out of the bank before what could be an unprecedented economic collapse.
“This may be the start of the biggest crash in history,” wrote the author in a post to X. ”Hope I am wrong yet no time to play Russian Roulette with your life.”
FYI. Bank Credit just sold off like 2008. Get some cash out of banks as you need cash. This may be the start of the biggest crash in history. Hope I am wrong yet no time to play Russian Roulette with your life.
— Robert Kiyosaki (@theRealKiyosaki) December 10, 2023
Kiyosaki highlighted the recent sharp decline in bank credit, which fell by 2% from its highs this year for only the third time in the last 50 years. Bank credit is the amount of money people and institutions are borrowing from banks.
In general, bank credit is almost always upwards sloping, and only experiences noteworthy contractions in economically chaotic times.
According to Barchart, the other two times bank credit declined so far from its highs occurred at the peak of the dot com bubble in 2001, and after the global financial crisis in 2009.
Credit has climbed steadily ever since, ramping up significantly at the start of the Covid-19 pandemic in March 2020. That growth was interrupted later during the banking crisis in March 2023, when the failure of a slew of crypto-supportive banks took ~$260 billion in credit out of the system.
According to @multi_finance on X, most of the recent credit has come on the back of a major securities selloff for banks in need of cash. “The Banks have been forced to sell their Securities to cover the reapportionment of their Reserves at the 12 Federal Reserve Banks in conjunction with the Fed’s Q.T. program,” he said.
Kiyosaki’s Doomsday Predictions
Kiyosaki’s call for collapse is next in a long line of apocalyptic predictions from the author which, until now, are yet to ring true. In August, he predicted that the US dollar will soon die and that Bitcoin (BTC) will skyrocket to $120,000 in 2024.
The author has frequently advised followers to invest in scarce assets like silver, gold, and Bitcoin as a hedge against inflation and the inherently unstable banking system. A core tenet of his book is to grow rich by accumulating debt to purchase real estate and other assets that appreciate over time, rather than saving in in dollars.
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