War, Inflation & the Dollar Collapse—What’s Coming Next?

Summary

Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
Episode Summary: "War, Inflation & the Dollar Collapse—What’s Coming Next?"
Release Date: January 22, 2025
Host: Robert Kiyosaki
Guest: Richard Duncan, Economist and Founder of Macro Watch

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Introduction

In this insightful episode of The Rich Dad Radio Show, hosted by best-selling author Robert Kiyosaki, longtime friend and esteemed economist Richard Duncan joins the conversation to dissect the current state of the global economy. Recorded on January 22, 2025, the episode delves into pressing issues such as the looming dollar crisis, global economic downturns, and the intricate dynamics between major world economies. Duncan's expertise provides listeners with a comprehensive macroeconomic perspective, positioning them to navigate the turbulent financial landscape ahead.

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Guest Background

[00:09] Robert Kiyosaki:
“Hello, hello, hello, Robert Kiyosaki, the Rich Dad Radio Show. The good news and bad news about money... I want to talk about the dollar, what it means, because Richard lives in Thailand, so he has a macro view.”

[01:38] Richard Duncan:
“I went to Vanderbilt and backpacked around the world for a year, landing in Thailand 40 years ago during its economic boom. My career spans roles at the World Bank, ABN AMRO Asset Management in London, and authoring four books, including The Dollar Crisis and The Money Revolution. Currently, I run Macro Watch, a bi-weekly video newsletter analyzing global economic trends.”

Duncan's extensive background, including his residence in Thailand, offers him a unique, unbiased vantage point to assess global economic shifts, free from the often narrow-focus lens of American media.

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State of the Global Economy

1. The Chinese Economy in Crisis

[03:29] Richard Duncan:
“China's economy is in a very serious crisis. Their growth was driven by export-led strategies and massive construction. However, with the US imposing higher trade tariffs and property prices plummeting—$19 trillion in wealth destroyed—the drivers of their economy are hitting a brick wall.”

Key Points:

• Export Decline: The US’s increasing trade tariffs are reducing China's exports, a primary growth driver.
• Property Market Collapse: An oversupply in real estate has led to a significant drop in property prices, eroding wealth by approximately $19 trillion.
• Demographic Challenges: China faces a shrinking population due to decades of the one-child policy, leading to long-term economic stagnation.

Notable Quote:
“China's economy is just going to stop growing altogether. They'll be lucky if what happened to Japan happens to China.” — Richard Duncan, [03:29]

2. European Economies: Germany and the UK

[07:38] Richard Duncan:
“Germany, once the powerhouse of Europe, is now struggling due to reliance on Russian energy, which has become expensive amid geopolitical tensions. Additionally, Chinese electric cars are outcompeting German manufacturers, threatening industries like Volkswagen and BMW.”

Key Points:

• Energy Crisis in Germany: Dependence on Russian oil and gas has backfired amid the Ukraine war, leading to increased production costs.
• Trade Imbalance: Chinese goods are now dominating German markets, pushing out traditional European manufacturers.
• Debt Concerns in the UK: Post-Brexit, the UK faces high government debt and inflationary pressures, exacerbated by declining bond investments.

Notable Quote:
“Germany is going to have to put up trade tariffs against China as well... their economy is very weak.” — Richard Duncan, [07:38]

3. The American Economy: Strength Built on Fragility

[11:07] Richard Duncan:
“The US economy appears strong due to massive money printing and government borrowing—$5 trillion during COVID and an additional $2 trillion annually afterward. This has inflated asset prices, creating a bubble that could burst if government spending is curtailed.”

Key Points:

• Inflation of Asset Prices: Substantial government spending has driven up stock markets and real estate, creating unsustainable asset bubbles.
• Debt vs. Wealth: Wealth in the US has surged by $50 trillion over five years, outpacing the national debt of $36 trillion, but this is built on fragile economic foundations.
• Potential Recession Risks: Efforts to reduce government spending could lead to a severe recession and significant stock market corrections.

Notable Quote:
“The US Economy is strong now because they printed a lot of money and because the government borrowed a lot of money and spent it.” — Richard Duncan, [12:02]

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Tariffs and US-China Relations

[18:38] Richard Duncan:
“President Trump’s proposed 60% tariffs on Chinese goods would devastate China’s already struggling economy, further reducing its exports not just to the US but globally. This could lead to widespread economic repercussions, including increased inflation in the US and potential stock market instability.”

Key Points:

• Economic Ripple Effects: High tariffs on China would not only weaken China's economy but also depress global markets, affecting trading partners like Thailand, Vietnam, Germany, Mexico, and Canada.
• Inflationary Pressures: Increased tariffs would elevate the cost of goods in the US, potentially reigniting inflation and prompting the Federal Reserve to hike interest rates.
• Stock Market Vulnerability: The existing asset bubble in the US could be endangered by rising interest rates and inflation, leading to significant market corrections.

Notable Quote:
“Tariffs could be the pin that pricks that bubble and brings about a very significant correction in 2025.” — Richard Duncan, [18:38]

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Risk of War and National Security Concerns

[22:31] Richard Duncan:
“China’s technological advancements—electric cars, batteries, hypersonic missiles, and 5G—are overtaking the US. If the US doesn’t invest aggressively in new industries and technologies, it risks being outpaced militarily and economically, akin to Germany in the early 1930s.”

Key Points:

• Technological Rivalry: China is rapidly advancing in critical technologies, challenging US supremacy in various sectors.
• Military Implications: Technological dominance is closely linked to military strength; lagging behind could compromise national security.
• US Strategic Investments: Initiatives like the proposed US Sovereign Wealth Fund aim to finance new technologies and industries to maintain American leadership and spur economic growth.

Notable Quote:
“If we don't respond by ourselves in the United States, investing more aggressively in new industries and new technologies... then we're really in danger of being conquered by China.” — Richard Duncan, [22:31]

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Investment Strategies: Hedging Against Economic Uncertainty

[26:08] Richard Duncan:
“I am a big believer in owning gold and silver as they historically preserve value against a weakening dollar. Additionally, owning land, especially with rental properties, offers both asset appreciation and income, serving as robust hedges against economic instability.”

Key Points:

• Precious Metals: Gold and silver are reliable stores of value, especially during periods of currency devaluation.
• Real Estate Investment: Land ownership, coupled with rental income, provides both asset growth and steady cash flow.
• Diversification: Combining precious metals, real estate, and other tangible assets can safeguard wealth against market volatility and inflation.

Notable Quote:
“They can buy the land and land is as good as gold. They're not making any more land.” — Richard Duncan, [26:08]

Robert Kiyosaki’s Personal Investment Approach:

[25:17] Robert Kiyosaki:
“I have gold and silver, a gold mine in Utah, a lithium field in Canada, and significant investments in Bitcoin. These assets provide a hedge against the dollar's potential collapse.”

Key Points:

• Gold and Silver Holdings: Strategic investments in precious metals as a safeguard.
• Mining Investments: Direct ownership of mining operations for tangible asset appreciation.
• Cryptocurrencies: Allocation to Bitcoin as a high-risk, high-reward hedge, emphasizing the importance of investor temperament.

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Conclusion and Call to Action

Robert Kiyosaki emphasizes the importance of staying informed and proactive in protecting one’s financial future. He highly recommends subscribing to Richard Duncan’s Macro Watch for in-depth, unbiased economic analyses.

[30:04] Richard Duncan:
“Macro Watch explains in very simple terms how the economy really works in the 21st century. Subscribe at RichardDuncanEconomics.com and use the coupon code 'crash' for a 50% discount.”

Final Thoughts:

The episode underscores the interconnectedness of global economies and the pivotal role of informed investment strategies in safeguarding wealth. Both Kiyosaki and Duncan advocate for diversification, technological investment, and preparedness to navigate impending economic challenges.

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Notable Quotes Summary

• Richard Duncan on China's Economic Crisis:
  “China's economy is just going to stop growing altogether. They'll be lucky if what happened to Japan happens to China.” — [03:29]

• Richard Duncan on US Economic Strength and Fragility:
  “The US Economy is strong now because they printed a lot of money and because the government borrowed a lot of money and spent it.” — [12:02]

• Richard Duncan on Tariffs Impact:
  “Tariffs could be the pin that pricks that bubble and brings about a very significant correction in 2025.” — [18:38]

• Richard Duncan on Technological Rivalry and National Security:
  “If we don't respond by ourselves in the United States, investing more aggressively in new industries and new technologies... then we're really in danger of being conquered by China.” — [22:31]

• Richard Duncan on Investment Strategies:
  “They can buy the land and land is as good as gold. They're not making any more land.” — [26:08]

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Subscription Information

To stay ahead in these volatile times, subscribe to Richard Duncan’s Macro Watch:

• Website: RichardDuncanEconomics.com
• Discount Code: Use crash for a 50% discount.

Robert Kiyosaki encourages listeners to arm themselves with knowledge and make informed financial decisions to protect and grow their wealth amidst global economic uncertainties.

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Disclaimer: This summary is for informational purposes only and does not constitute financial advice. Always consult with a professional advisor before making investment decisions.

Transcript

[Robert Kiyosaki]

This is the Rich Dad Radio Show. The good news and bad news about money. Here's Robert Kiyosaki.

Hello, hello, hello, Robert Kiyosaki, the Rich Dad Radio Show. The good news and bad news about money. And my God, lately there's been more bad news than anything else. But as you all know, bad news can be good news for the entrepreneur or the person who can spot the changes coming in the world. So I have a longtime friend, Richard Duncan. He's an American by birth and all this, but he lives in Thailand. And Richard is an economist. And I came across him because there used to be a bookstore called Borders Books, and they're out of business now because of Amazon. But anyway, I found the dollar crisis there, and that's why we have Richard today. I know him for 25, 30 years now, and I want to talk about the dollar, what it means, because Richard lives in Thailand, so he has a macro view. His podcast is Macro. You get the bigger picture on the world right now. And as we all know, we have the California fires. There's no, you know, a lot of people don't have insurance. They can get rebuilt. Our banks are in trouble. So there's a lot of bad news. But also I want Richard to give us a macro view of what's happening in the world, and maybe you can find the silver lining. So welcome to the Rich Dad Radio Show. Richard, long time we've been talking about this stuff.

[Richard Duncan]

Robert, thank you. It's so great to see you. Thank you for having me back.

[Robert Kiyosaki]

Real quick question. Please give us your background. I know you went to Vanderbilt, I think, or something.

[Richard Duncan]

That's right, I went to Vanderbilt. And when I finished Vanderbilt, I was really lucky and got to backpack around the world for a year. And during that trip, I saw Asia. So I first saw Thailand and Malaysia and Singapore 40 years ago, and it was already booming economically. So I realized, go east, young man. So I went back to business school for a couple more years at Babson College near Boston. And when I finished that, I flew to Hong Kong and found a job as a securities analyst in Hong Kong doing research on the listed Hong Kong companies. And so I've been living in Asia most of the time since then as a securities analyst, an economist, a strategist. I worked for the World bank in Washington for a couple of years, and I was global head of investment strategy for ABN AMRO Asset Management in London for a couple of years. And I've written four books, your favorite, my first one, the Dollar Crisis, and most recently the Money Revolution how to finance the next American Century. And I have a. Now my business is Macro Watch. I have a video newsletter that I publish every two weeks describing important things happening in the global economy and how that's likely to affect everyone's wealth.

[Robert Kiyosaki]

And that's why you're a welcome guest on our program because not only do you have the Macro Watch, but you live outside of America. You're an American and you can watch and see the insanity going on all over the world. So I have a couple of quick questions. You live in Thailand. What do you know about the Chinese economy? You know, they have those empty cities and all this stuff. And we hear in the States that the Chinese economy is hurting. What, what do you know for sure?

[Richard Duncan]

Yeah. So I've been following China very closely at the macro level for, for a couple of decades already. And it is true China's economy is in a very serious crisis. But that doesn't mean it's going to collapse tomorrow and completely disappear. That's certainly not the case. But their economy was driven by two main things. First, by exporting more and more to America, primarily so export led growth. And secondly, by building literally millions of high rise buildings. And now they've gotten to the point where both of these growth drivers are just slamming into a brick wall. America's not going to take any more of their goods. So the US Is putting up higher trade tariffs. So China's exports to the US are beginning to fall. And at the same time, they have such an extraordinary property glut over there. They say that people are saying that they probably have two apartment units for every person in China, so they don't need to build any more apartment units. The prices of apartments are dropping, and that's where people store their wealth. So they say that $19 trillion of wealth has been destroyed in China because of falling property prices. But it goes so much deeper than that because for so long so many buildings were being built and that required lots of construction workers, lots of cement and steel and tile. And so all of those industries expanded exponentially. And now they're all just crashing because there's no need to build any more buildings. And finally, to put the icing on the cake, China's population is shrinking. They have absolutely catastrophic demographics. By the middle of this century, there will be somewhere like 150 million fewer Chinese people than there are now. And by the end of this, 150 million fewer Chinese by 2050, and by the end of the century, there are going to be 500 fewer million Chinese people just because they had a one child policy for so long now they've loosened that up. But people don't want to have any children and so their population is just crashing. So they're stuck with this massive excess supply of property, falling property prices, no one wants to buy their exports anymore because China's destroying everyone else's manufacturing bases by subsidizing their own products and selling them cheaply. And so trade tariffs are going up all around the world against Chinese goods. And so China's economy is just going to stop growing altogether. They'll be lucky if what happened to Japan happens to China. That's the best case. What happened to Japan is in 1990, their bubble popped and they haven't grown at all since 1990. And if China just stops growing and doesn't grow at all for the next 30 years, they'll be very lucky. It's probably going to be a much harder landing than that.

[Robert Kiyosaki]

Okay, well, so let me. We have the whole world to cover here again, Richard, he's my man because Richard Duncan, he has Macro watch and he sees the whole world. But what I like about him, he's an American living in Thailand and so he's not jaded by the American press here, but you have your own problems here. But when I look at Germany, I saw this picture in the Economist. They had the German economy on the back of, of a truck, you know, and it was, Europe was crashing because Volkswagen is closing plants and all this, the car industry is dropping. And then I guess this, I, I think I could be wrong. Germany tried to go woke, they went, they got rid of nuclear and all this other stuff and then their, their cost of energy went up and all this. So it's Germany which is the engine in my opinion, I'm not an economist like you. Germany has been the engine of Europe. What's happening to Germany and France now? What's happening there?

[Richard Duncan]

So Germany in particular is in serious trouble too. They used to be the strongest economy in Europe and now they're one of the weakest. They made the big mistake of relying on Russian oil and Russian gas. And now that the Ukraine war is underway, they've been cut off from all of that cheap Russian gas. And so now they have to buy expensive imported energy. And that makes all of their manufacturing operations much less profitable or very much less competitive than before. And at the same time, Germany relied very heavily on exporting to China. But now China is starting to export to Germany. Germany used to sell China a lot of Mercedes Benz and BMWs and all of their other cars and made a lot of money that way. But now the Chinese cars are so good, China has developed these electric cars that are the best in the world and the cheapest. And so not only are the Germans not able to sell their goods in China anymore, but now the Chinese are selling all of their cars in Germany and all of their other cheap products. And if Europe, if Germany doesn't put up trade barriers to keep them out, there aren't going to be any more German car manufacturers left in a few years time. So Europe, Germany is going to have to put up trade tariffs against China as well. So. And Germany also has a declining population, although it's nothing as severe as China's. So Germany is facing very, very hard economic times as well.

[Robert Kiyosaki]

So what's happened to Jolly England? I mean, there was a. They tried to sell their guilds. A guild is a bond, I guess, right?

[Richard Duncan]

That's right. It's a government bond, yes.

[Robert Kiyosaki]

So what's happening in Jolly Jolly England?

[Richard Duncan]

Well, they decided to leave the European Union and so their export economy is quite bad. And all of the unexpensive labor who used to come and work in England from Poland, for instance, they've all gone home. So wages are high and this has been inflationary and their government debt has gone up very sharply and people are reluctant now to continue buying English government bonds. So just in the last couple of weeks, the yield on government bonds has shot up to the highest level in decades. And people are afraid that they're about to have another debt crisis the way that they did at the end of 2022. At that time, yields on their government bonds shot up so much that the bank of England had to jump in again and start creating money and buying government bonds and pushing up their price and holding down their yields just so that they wouldn't have a complete meltdown. And so there's really quite a bit of concern that that's possibly going to happen again, although it doesn't seem as severe this time as it was a couple of years ago. But their economy is very weak. They've hardly grown since COVID despite the much higher levels of government debt. And there are no clear growth drivers for them in the future.

[Robert Kiyosaki]

And so when the last year, being an American living in Thailand and an economist, what is your view on the American economy?

[Richard Duncan]

Well, so the American economy has been extremely strong in the last couple of years. But the reason is, is that the government budget deficits have been so large. First we had the spending, the stimulus. During COVID government debt jumped about $5 trillion in the first couple of years of COVID And The Fed created $5 trillion of paper money out of thin air to finance that government borrowing. That was a massive jolt of stimulus. But it didn't stop there. Even after Covid was over, the budget deficit has been $2 billion a year. Sorry, $2 trillion a year for the last two years. And this has had an extraordinary impact on pushing up the stock market and housing prices.

[Robert Kiyosaki]

Let me ask this question because I'm not. You're the economist. I'm not. Is US Economy strong because they printed so much money?

[Richard Duncan]

The US Economy is strong now because they printed a lot of money and because the government borrowed a lot of money and spent it. And that made asset that made the stock market go up.

[Robert Kiyosaki]

Right.

[Richard Duncan]

So over the last five years, the wealth in the United States has increased by $50 trillion in five years. That was a 40% increase in wealth, of $50 trillion in wealth. The whole national debt, the government debt's only $36 trillion. So wealth in five years is increased by enough to pay off the entire government debt with $16 trillion left over. But the problem is it's a bubble. The asset prices are very high, their PE multiples, the wealth to income ratio, everything is very inflated. And if they start spending less government money and trying to reduce the government debt, that's going to pop the bubble. So if Doge, the Department of Government Efficiency, if it does succeed and cut government spending, then it's going to hurl the US Economy into a severe recession. That's probably going to cause a big stock market sell off and that may force the Fed to jump back in and start printing money again to push things back up as they normally do in crises.

[Robert Kiyosaki]

I have tremendous respect for Richard because his Macro Watch. I would subscribe to Macro Watch because Richard is unbiased. He just sees the world as he sees from an economist's eyes. But when we come back, we're going to take a break. But every time I've had Richard at one of my seminars to speak, I had to put people on suicide watch. But being a pessimist like I am, I always see bad news as good news. You know, what can a person do? So we come back with Richard Duncan again. His business is Macro Watch. First, quick, really quickly, how do they subscribe to Macro Watch?

[Richard Duncan]

Thanks. So yes, they can find Macro Watch on my website. It's Richard Duncan economics.com that's Richard Duncan economics.com and if every couple of weeks I upload a new video and if they'd like to subscribe, click the subscribe button and use the coupon code crash for a 50% subscription discount. You'll find that very inexpensive. And I'll keep you posted on everything that's happening in the global economy at the macro level and how it's likely to impact your, your wealth.

[Robert Kiyosaki]

Yeah, I'll make sure, make sure you have a strong heart and strong spirit when Richard talks because I, I love, I love having Richard on because being a pessimist, bad news can be good news if you know what to do. So we come back. We'll be back with Richard Duncan and long friend for over 25 years now. So, Richard, we'll be right back.

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Welcome back. Robert Kiyosaki, the Rich dad Radio Show. Our guest today is Richard Duncan, longtime friend. I came across his book Dollar Crisis in which really resonated for me because I don't trust the US Dollar. And Richard on top of that is a macro economist. He lives in Thailand and his viewpoint on the world is pretty unbiased, yet caustic. And every time I've had Richard come to my seminars in Phoenix after he spoke, I had to put people on suicide watch because Richard doesn't hold back as to what is not working in the economy. And I was talking to Richard, I was in Thailand in 96 after the Thai baht crisis and some of the best real estate in the world in Bangkok was really, really cheap. So my point here is Richard gives the bad news, but it's also good news for the entrepreneur if you know what you're doing, if you can play your cards right and all this. So, Richard, this guy Trump is a good friend of mine. He's talking about tariffs. What is your point of view on tariffs on whatever he's trying to do?

[Richard Duncan]

I can tell you, he said he's going to put 60% tariffs on all the goods coming from China and 10 to 20% tariffs on all the goods of all of our trading partners. Now, this is going to be a disaster for China's economy because as we've already discussed, China's economy is already in a severe crisis because of the falling property market. But if he were to just, for example, if he were to put high tariffs on Chinese goods and not put tariffs on any of the other countries in the world, just China, those high tariffs on Chinese goods would mean that China would be able to sell much less to the United States. So China would be much poorer and China then would buy far fewer goods from Thailand and Vietnam and Germany and the United States and all the other countries in the world. So that would also depress the economies all around the world, just if he only focused on China alone. So that's what has all of the Asians very worried. And not only the Asians, of course, the Europeans and the Mexicans and the Canadians. So if that's, that's a concern because of that reason, but also if there are higher tariffs, that means that the cost of goods in the United States are going to go up. And if the cost of goods in the United States goes up, there'll be more inflation. So recently the Fed has been cutting interest rates, but if inflation starts to pick up again because of tariffs and because of deporting a lot of workers, then the Fed's going to start increasing interest rates again in the United States. And that's going to be disastrous for the stock market because the stock market there is so overinflated already. $50 trillion of wealth has been created over the last five years. A 40% increase in wealth. It's very bublish. And tariffs could be the pin that pricks that bubble and brings about a very significant correction in 2025. Bond yields are already moving up very Sharply in the US as well as the UK we were talking about the UK earlier, but just over the last few weeks the 10 year bond yield has shot up to almost 5%. It was expected to go down because inflation has been dropping, but in recent last three months it's moved up sharply. And because it's moved up, the dollar has moved up very sharply. And that's not what President Trump is hoping for. President Trump is hoping to make the dollar weaker so it'll be easier for American companies to sell their goods abroad. But right now there's fear that there will be higher inflation. And so the dollar and ten year bond yields are moving higher. And if bond yields are moving higher, that means mortgage rates are going higher. With mortgage rates going higher, that's going to weigh on the property market. All of those things are related to tariffs in an indirect way.

[Robert Kiyosaki]

My I'm going to be in Vancouver, British Columbia this week. The Resource VRIC Vancouver Vancouver Resource Investor Conference. And there's a guy named McGregor is going to speak out there about how close to war are we getting? Because as you know, Richard, money and war go hand in hand and you threaten China and you have our fleets all over the world. How close to war are we getting? From your point of view as an American sitting in Thailand watching Trump kind of a he's a friend of mine, but he's a bully. He wants to get what he wants. But are we pushing to war or is that too far pessimistic?

[Richard Duncan]

I'm very worried about US national security because even though China's economy is having a property crisis, that doesn't mean that China's government is Slowing down, its extraordinary surge in investment in new industries and new technologies. That's why they dominate electric cars and batteries. That's why they have hypersonic missiles and we don't. That's why they had 5G for several years before we got 5G. They are overtaking us technologically. And if they overtake us technologically, they're going to overtake us militarily. And this is happening very quickly. This is what was happening in Germany in the early 1930s. Winston Churchill warned the world that Germany was industrializing and was becoming a very serious threat. Well, we're past that point with China now. China is neck and neck with us technologically. And if we don't respond by ourselves in the United States, investing more aggressively in new industries and new technologies on a very large scale, then we're really in danger of being conquered by China in the not too distant future. And so that's why I was so excited when President Trump announced on September 6 in a speech at the New York Economic Club that he was going to establish a US Sovereign wealth fund to invest in new industries and new technologies. The main reason for doing that is because we could produce technological miracles and breakthroughs and ensure that China never overtakes us technologically. And meanwhile, that sort of investment would turbocharge U.S. economic growth and allow us to grow out of our economic problems rather than being sucked down into depression. We could have a major economic boom if we invest aggressively in new industries and new technologies. And so that's the policy of President Trump that I'm most enthusiastic about. Establishing a US Sovereign wealth fund. Yes, I'm very worried about China, and every American should be. And that's why they should get behind this idea of the US Government financing a multitrillion dollar investment in the technologies of the future. That was what my most recent book was about. The Money Revolution, how to Finance the Next American Century, how to Drive the economy forward. We don't have to just grow at 2% economic growth a year. We can rev up the economy and make it grow at 7% a year. America doesn't have to be a declining superpower. The first American century doesn't have to be the last. We have the resources to invest in our future and turbocharge economic growth and create such extraordinary technological breakthroughs that will rule the world for another century and beyond.

[Robert Kiyosaki]

So that's macro, and again, it's Richard Duncan, his Macro Watch. I highly recommend subscribing to his work. But what can the ordinary person do? Like, for me personally, since your first book was the Dollar Crisis. I don't read the first book, but I read the Dollar Crisis. I never trusted the dollar. So I have gold and I have silver. I have a gold mine in Utah. I had a. I had a gold mine in China, but they confiscated that one, so I don't like China's anymore. I bought a lithium field in Canada and I'm a resource guy because that's what fuels, that's what keeps going. So when you look at gold, silver, and not today, bitcoin, what, what are your opinions of that? As hedges or as insurance against a dollar that might be coming apart?

[Richard Duncan]

So I wrote the dollar crisis in 2002 and at that time gold was under $300 an ounce. So the dollar has lost more than 95% of its value against gold since then, I think, and over the next 30 years, we're probably just going to see that trend continue. So I am a big believer in owning gold and silver and gold more or less move together. I'm also a big believer in owning land, especially land with rental property on top of it, like a house, so you can buy the land and land is as good as gold. They're not making any more land. So if gold goes up, land will go up. And meanwhile you can have the rental income from your house every month. And if you have a mortgage and we have higher inflation, which is a real possibility, the higher inflation will eat away your mortgage and destroy your debt in a good way and you'll become richer that way. So all of those things are things that normal Americans can do.

[Robert Kiyosaki]

So, ladies and gentlemen, this is why I trust Richard Duncan so much, is because he'll tell you straight. And like I said, everything came to our conferences and spoke. We had to put people on suicide watch. But everything he says is coming true. Well, because, you know, I'm a gold bug. And exactly this. At around 2000, you know, England dumped Guy Brown dumped a lot of gold, and gold was pushed down to about 300 an ounce. So I bought a ton of gold coins and then I just cashed it in at was. I bought it for 300. I sold that at around 2,900 and I bought apartment houses with it. But that's what I do. I stay within what I know. And then I bought Bitcoin at 6,000 and I just kept buying it. And today I have probably a couple of million in bitcoin. But I agree, 100, Richard, if you don't, it goes down as fast as it goes up. And so I was talking to a guy the other day about bitcoin and he says, oh, what happens if it crashes? I said, you'd better not be in the. You better not be in bitcoin because he doesn't have the stomach for it. So anyway, other thing I was laughing about was Rich was in Thailand. Like I said, I was there for the taot crisis in 1996 and there was a hotel for sale and I kept looking at it. But the when, when things are really bad, it's hard to see the good, if you know what I mean. And so the realtor was trying to sell me this big beautiful hotel in downtown Bangkok and it was only like 4 million bucks. And I kept looking at it and I finally gave up because I couldn't make heads or tails out of it. And so the realtor called me about a year later and he says some entrepreneur went in there and he says, ah, the trouble is you're trying to rent it as a hotel. Instead of renting the hotel by the day, he started renting it by the hour. And the realtor says he's making a fortune. So I know that's not the most politically correct thing to say, but what I'm saying is that I listened to Richard because there's always something good in the bad if you pay attention, right?

[Richard Duncan]

My education in bubblenomics was exactly here in Thailand. I lived in Bangkok from 1990 until 96 and at first it was a real economic miracle, but by the end of that period it was such a super bubble. I'd become bearish on it and the bubble did pop. And when the bubble popped, the Thai stock market fell 95% in dollar terms and 30 years later it still hasn't reached its high. That it hit on the first day of 1994 and the bot crashed. The GDP contracted by 10% the following year. So that's where I learned about economic bubbles and what causes them and how to play them.

[Robert Kiyosaki]

Thank you very much Richard, for being a friend for all these years. But one more time we should talk about Macrowatch, how people can subscribe to your very important publication.

[Richard Duncan]

Thanks, Robert. So they can find Macrowatch at my website, richardduncaneconomics.com every couple of weeks I upload a new video. It's basically me making a PowerPoint presentation. It usually has 30 or 40 charts. And I explained something important happening in the global economy, like recently, the debt ceiling problems in the US and the risk that there's going to be a stock market sell off pretty soon in the us. But I also Discussed China's economy. I discussed the Magnificent Seven in a big series. And I really focus on the fact that credit growth has been driving economic growth and the part that the government plays in creating money to keep this bubble inflated by creating liquidity. So it focuses on credit growth and economic. And liquidity because the economy just doesn't work the way that it used to when dollars were backed by gold. The economy works in a completely different way now and the government tries to control it. So Macro Watch explains in very simple terms how the economy really works in the 21st century. So I think your listeners would get a lot out of this. And again, if they would like to subscribe at a 50% discount, go to Richard Duncan, economics.com, hit the subscribe button, and when prompted, use the discount coupon code crash. Crash for a 50% subscription discount.

[Robert Kiyosaki]

Right. And I highly recommend subscribing to it because, like, definition of intelligence, if you agree with me, you're intelligent. I wrote this book here, Rich Dad's Prophecy, and this came out in 2013 or 12, something after the 2008 crash. And I watched what the Federal Reserve bank was doing. That was Bernanke. And they printed so much money. So that's why Richard and I are joined at the hip there. We're floating on fake money and we just keep printing it, hoping the bubble stays up. So that's why. Please subscribe to Richard's newsletter. Richard, thank you for being a friend all these years. And the thing I love about Macro Watch, he uses a lot of pictures, not words. So he has charts and graphs so you can see it in a picture.

[Richard Duncan]

Well, Robert, it was you who advised me that I should create MacroWatch 1311 years ago. And I did, on your advice. And it's been really fantastic advice. So thank you. You've been a great mentor to me.

[Robert Kiyosaki]

Yeah, we're an education servant. I don't recommend buying Bitcoin or gold or silver or land or cows and all this stuff. You leave that up to you. But you need to have information so you can make better decisions. So, Richard, keep up the good work and we'll be back. See how it goes next year.

[Richard Duncan]

Okay. All right, let's do that. I look forward to the next time.

[Robert Kiyosaki]

Yeah. So I'll be right back with the final words for. For Rich dad subscribers. And again, I want to thank Richard Duncan. And please subscribe to America Watch with Richard Duncan. We'll be right back. Welcome back. I want to thank Richard Duncan and then please subscribe to his Macro Watch. It's he's a lot of graphs and pictures so you get the big picture very quickly. He's very smart and unfortunately we're going into some very rough economic times. But the good news is is when there's bad news there's also good news. You can't have all of it but to sit there fat, dumb and happy and pretend your 401k or the stock market is going to keep you alive. I'm afraid that's not going to work because I wrote this book I think in 2012 or 13 after the 2008 crash and I could see this crash coming. Let me just say one more thing. We don't give financial advice but we do recommend people study because money, like it or not, money is a very important element of life and most people pay no attention to it. Anyway, thank you to Richard Duncan and thank you all for watching the Rich dad radio show.

[Richard Duncan]

This podcast is a presentation of Rich Dad Media Network.