Robert Kiyosaki Blog

Financial Education Portal inspired by Robert Kiyosaki

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Investing in Gold & Silver During Inflation, Stagflation and Deflation?

Investing in Gold & Silver During Inflation, Stagflation and Deflation? By: Julian D. W. Phillips, Gold/Silver Forecaster – Global Watch In this piece we are looking at some critical fundamental features of precious metals that are rarely considered or accepted in the developed world markets. Expert investors like Warren Buffet look at inactive, buried gold with amazement, because he is focused on companies that produce things and earn money. And most of us wish we had his skill and money behind us. George Soros and the like invested in gold as an anti-deflationary measure. Most analysts appreciate the anti-inflationary value of gold and silver. The protection of gold and silver in stagflationary environments are a combination of both abilities. But why are gold and silver capable of giving such protection in bad times as well as good times? They have certain qualities that shine forward at times when other investments fail. The Limitations of Cash In times of monetary stability and soundness, safely-stored cash never fails. Most consider cash in the bank to be the safest conservative investment, and in the distant past, the days of our grandfathers, this was largely true. But that horrible word, inflation, came into being where prices kept on rising and cash saved would buy less-and-less. Interest rates compensated for this inflation, but then interest rates stopped rising. When interest rates did rise, it was at a slower pace than inflation. Cash lost its buying power as time went by. Bank charges would eat away any gains that might be made. At first inflation would occur one country at a time, and the exchange rate on those currencies fell, hurting international buying power even more. Today inflation is a global phenomenon. Investors would have to move out of cash and into businesses or other investments that offset the cost of inflation.   This was not easy unless inflation happened while growth was vibrant. And this benefitted those middle classes that enjoyed such growth. The poor, whose income rises slower than inflation, feel the pinch. Suddenly, booms turn into busts and businesses don’t do well. The value of businesses and its shares fall, losing investors money. Even self-managed businesses fall in value, putting rich people into bankruptcy. This is deflation, a monetary mood that causes values to shrink. In deflation the value of cash grows as prices fall. Those who believe they are skilled investors answer, sell, then cheaply buy back. We look at that timeless story of an investor who did that just before the Wall Street Crash. His friend did not do so well selling only when the fall was half way down. But...

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Why Gold & Silver? FULL MOVIE – Mike Maloney Tells All

This is the full version of the movie, which features extra parts not yet seen on YouTube: Currency creation, the Federal Reserve, fractional reserve banking, how central banks steal our wealth, runaway deficits, the second wave of mortgage resets, Mike’s prediction of short term deflation THEN hyperinflation, New Media, Ron Paul, and the Constitution. It was fascinating to watch the film again and see how things have moved on since it was filmed in June of 2009. Gold was $950. Silver was $15. The Gold/Silver ratio was 65. You could pick up a monster box of eagles for a cool $8000. Though the prices and ratios have moved on, the film is entirely relevant and still one of the best ways for a newcomer to get up to speed with gold and silver. It is jam packed with information and calm analysis by the top experts in their field, who have been right since the start of the last decade. If you have a friend or family member who wants to know about metals but you can’t find the time to help them understand, or if there is someone you want to help but they just won’t listen, or even if you just want to say ‘Haha! Told you so!’….do them a favour and send them the link to this movie. Embed it on Facebook. Tweet it. The lot… At least they won’t be able to say ‘Why didn’t you warn me?’ as they ask you for a loan! “You know, we’re in this period where governments are abusing their currencies worldwide, and gold and silver are going to account for all of this. And like I say, there are these brief moments throughout history where the investment with the single greatest potential gains in purchasing power, is also the safest place that you can put your wealth, for the past 5000 years! And I’m not going to let that pass me up, let me tell you!” Thank you Mike Maloney, neither are we. Contents of the film: -Currency Vs Money -United States M3 expansion -Fiat Currency and how it is created -The Federal Reserve is neither federal nor has reserves -Fractional reserve banking -How central banks steal wealth from the people -The second wave of mortgage resets -Out of control deficits -Gold always accounts for an expanding fiat currency supply -Gold and silver above ground supplies -Differences between the 70s bull market and now -Silver as an industrial metal -Gold/Silver ratio and the Price Discovery Mechanism -Growing awareness and New Media -Ron Paul and the Constitution -Price suppression via metals leasing -GATA -Fraudulent gold accounting by the US...

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[MUST WATCH] College Conspiracy – NIA Documentary

College education is the largest scam in U.S. history! Share and...

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$6,000 Silver and ONE BANK

The silver markets are rigged. Every day. Every trade. Every option. Every derivative. The silver markets have been rigged since the early 1970’s when Alan Greenspan introduced computer market trading systems to the world beginning the long term commodity market rigging operation. Since that time there has not been a day when the silver markets have been “freely traded”. Nobody, and I mean NOBODY, knows the true “Fair Market Value” of silver! But like all price suppression schemes, the silver manipulation must come to an end and we are on the brink of that moment. The only remaining question should be “What is the true value of silver in terms of money?” First a little background to set the stage. Computer Commodity Trading Beginning in the early 1970’s, computers were introduced to control the order flow in financial markets. Order processing was drastically changed with the New York Stock Exchange’s “designated order turnaround” system (DOT, and later SuperDOT) which routed orders electronically to the proper trading post to be executed manually, and the “opening automated reporting system” (OARS) which aided the specialist in determining the market clearing opening price (SOR; Smart Order Routing). Today we have algorithmic trading, auto trading, algo trading, black-box trading, robo trading…and the list goes on. Algorithmic Trading is widely used by pension funds, mutual funds, and other buy side institutional traders, to divide large trades into several smaller trades in order to manage market impact, and risk. Sell side traders, such as market makers and hedge funds, claim to provide “liquidity to the market”, generating and executing orders automatically. In “high frequency trading” (HFT) computers make the decision to initiate orders based on information that is received electronically, before human traders are even aware of the information. Over the years computers have played an increasingly important role in everything related to our “free and open market system” such that today’s financial markets CANNOT function without computers. The Federal Reserve, US Treasury, Wall Street insiders and the Exchanges were all instrumental in the integration of computers but they also gained access to secret trading information before the order hit the open market. This information coupled with the fastest computers on earth made market manipulation easy. This power, the power to control markets, was too much for anyone to resist. Over time those who were given the official key to the back office operations have used and abused their position to its manipulative fullest. Although some of the time they used this power in an official capacity (for the good of the country), more often than not it was used in an unofficial capacity… for the...

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Robert Kiyosaki Silver is the best play right now

Robert Kiyosaki talks about Gold & Silver as the best play right now Share and...

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Good Debt Vs. Bad Debt!

If I were to borrow money from a bank to invest in a property, I would incur a debt. Is this debt considered to be a good debt or bad debt? Well that really depends on who is paying off the debt. Based on the Rich Dad’s series by Robert Kiyosaki, a good debt is a debt where someone else is paying off for me while a bad debt is a debt where I need to pay off myself. For example, if I were to rent out my property to someone, then I would be collecting rental income. This collected rental income could be used to pay off my mortgage loan. In this sense, I was the one who had borrowed the money but my tenant would be the one paying off my debt. However, if I had failed to rent out my property to anyone, then I would not be having any rental income. In other words, I would need to pay off the mortgage loan myself. Then this mortgage loan would be considered to be a bad debt. If my property were rented out, then the debt would be a good debt. If my property failed to rent out, then the debt would be a bad debt. Depending on whether I had any tenant, my debt could be switching to and from bad debt to good debt in a given period of time. Thus, a good debt may not stay as a good debt indefinitely while a bad debt may not stay as a bad debt forever. With this new understanding, there are two things that I can do to strengthen and protect my financial position. Firstly, I can identify all my bad debts and try to convert them into good debts. For example, if I were to own a car but I rarely used it. I could rent it out to earn rental income. This rental income would be used for covering my car loan. In this way, I had converted a bad debt to a good debt. If I failed to find someone to rent my car, I would try to settle my bad debt as soon as possible. Using the previous example, my car loan is a bad debt because every month I would need to service the loan repayment. Since I rarely used the car, then it may make sense for me to sell it off and pay off my bad debt. Secondly, I need to do proper financial planning for all my good debts since there is a danger of a good debt becoming bad debt at any point of time. Based...

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GOLD & SILVER OUTSIDE THE MATRIX – Mike Maloney & David Morgan In Las Vegas

This video features David Morgan’s thoughts on how physical gold and silver are the only asset class that exist outside the matrix of our financial system. Share & Leave your comments below! Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future Share and...

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The American Dream Film

The AMERICAN DREAM is a 30 minute animated film that shows you how you’ve been scammed by the most basic elements of our government system. All of us Americans strive for the American Dream, and this film shows you why your dream is getting farther and farther away. Do you know how your money is created? Or how banking works? Why did housing prices skyrocket and then plunge? Do you really know what the Federal Reserve System is and how it affects you every single day? THE AMERICAN DREAM takes an entertaining but hard hitting look at how the problems we have today are nothing new, and why leaders throughout our history have warned us and fought against the current type of financial system we have in America today. You will be challenged to investigate some very entrenched and powerful institutions in this nation, and hopefully encouraged to help get our nation back on track. What did you think about this film? Leave your comments below! Share and...

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[VIDEO] Mike Maloney and Max Keiser on Deflation, Gold, Silver and China

Mike Maloney interviewed by Max Keiser on The Keiser Report. Mike Maloney is the author of the “Rich Dad’s guide to investing in Gold and Silver” and has a lot of knowledge on economic history. Mike talks about the banking system and how they create and expand the money supply via fractional loaning. He explains the future and the debt crisis and how it will boost gold and silver. In his book he describes “The Biggest Wealth Transfer in The History of Man Kind”. You can become extremely wealth during times of economic turmoil… If you know how! Let me teach you how to build a steady and regular portfolio of Gold & Silver and earn monthly income from helping others do the same! Visit http://www.youniquerichdad.com/ to learn more about me and the opportunity to build great wealth during our times. Please subscribe and leave your comments about the video! Share and...

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How Inflation Makes Saving Money Almost Pointless

Image by Getty Images via @daylife One of the most dangerous lies in all of finance and economics is the implied myth that inflation somehow “destroys” wealth. It doesn’t. Inflation doesn’t hurt everyone equally — inflation helps some and hurts others. Inflation is actually one of the biggest reasons large corporations are so powerful in society. The government and big banks use inflation to force people to spend their money and go into as much debt as they can afford. But how does it all work? Before we answer that, let’s first look at a parable. Some things are best learned in a story format, and inflation is one of those. The Saver and the Slave: An Inflation Story There were once two men who were neighbors. Their names were “Jack” and “John”. Jack was a saver. He spent his entire life saving every penny he could get his hands on. He saved money with coupons, saved money by buying stuff only in off-seasons, saved money by spending as little as he could, etc. He was a saver. By the time he was 45, he had saved exactly $100,000. John was a spender. He spent every dime he ever earned. Back in his 20s, he even took out a $100,000 loan, and bought two houses with it. He never used coupons, never looked at prices before buying anything, and wore nicer clothes. During this time, inflation started to hit in. Inflation was fairly high. By the time Jack and John were 45, inflation destroyed 90% of the value of the US dollar. For Jack, this was disastrous. He spent his whole life saving $100,000, and suddenly it was worth only 10% of what it should have been worth. This means that rather than having 100k it was as though he only had 10k. Not enough to even buy a house. For John, this was perfect. He spent his whole life spending his money, so he didn’t see his money lose value. He took out a 100k loan, but his loan was only like he had a 10k loan now — and he still has two houses. John ended up selling one house, paying off the loan, and walking away with a free house, and 90k. Inflation Destroys Debt and Dollars Inflation doesn’t destroy wealth — inflation destroys dollars. This means if you’re in debt, inflation makes your debt less and less. If inflation is 10%, it’s like your debt is getting 10% smaller every year. If you’re a saver, inflation makes your savings 10% smaller every year. Every year people in debt see their net worth increase because of inflation....

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