Get RICH In The Next Market Crash—Robert Kiyosaki

(upbeat music) – [Announcer] This is
The Rich Dad Radio Show the good news and bad news about money. Here’s Robert Kiyosaki. – [Robert] Hello, hello, hello. It’s Robert Kiyosaki,
The Rich Dad Radio Show, the good news and bad news about money. We have a very interesting
show for you today. It’s about how do you predict the future? but more important is this How do you get rich in the next crash? How do you get rich in the next crash? And we have one of the most prolific and most proficient and most respected economic forecasters today a friendly guest of
The Rich Dad Radio Show His name is Harry Dent. His new book is called Zero Hour: Turn the Greatest Political
and Financial Upheaval in Modern History to Your Advantage. It came out in November 2017. Also the The Sale of a Lifetime: How the Great Bubble Burst of 2017 and 2019 Can Make You Rich. But, also, he has a book
called The Gold Bust. You know, how gold is going to
drop to 400 dollars an ounce. And as I’m talking about today,
as you know I’m a gold bug and gold in my opinion is making a bottom, with a small bottom so all you people who want to
keep an open mind over here ’cause I love gold but
Harry’s going to tell me why I’m full of you know what. And also for you real estate guys Harry’s going to talk
about how real estate is about to come crashing down. So for all of you guys out there the reason I like this stuff
is because when things crash that’s when you get rich. You know, I was watching
Warren Buffett the other night and somebody was asking about the crash and he goes, he says, “Well I
don’t worry about the crash. I like them, “’cause
that’s when I get rich.” So ladies and gentlemen this is your show if you’re still not rich! Because what happened
for Kim and I in 2007 when that market came
tumbling down in real estate, that’s when we made most of our money. It is the best time to get rich. So that’s why I’m very
happy to have Harry Dent as part of our show today. His other thing is, you know
why I’ve read his stuff? It says “demography is destiny.” in other words, what’s
going on in demographics? It’s really easy to see
what’s going to happen. So for me it’s really easy to look as a baby boomer I look out there and I think less than 50
percent of the baby boomers have enough money to retire
on, much less if they get sick. See what happens for most people is medical expenses wipe ’em out. And so as the old guys like me get older, better listen to this program here. So also, Harry is the editor
of the free newsletter Economy & Markets. You can get it at his
website Any comments, Kim? – [Kim] Well, Harry is
truly an economic forecaster and you know, nobody has the crystal ball but he’s pretty close to it. And so we got a lot to talk about today from his book Zero Hour. We’re gonna talk about what does Harry see with the stock market? what does harry see, as
you said Robert, with gold? what’s happening with China? and where are the places to invest that he sees coming up? – [Robert] But also the Zero Hour’s about the political upheaval and financial upheaval. And as you know, my friend
the Donald up there, – [Kim] – Yeah, it’s all connected. – [Robert] boy he is creating
a lot of upheaval up there. (Kim laughs) – So these are very exciting times that if it wasn’t so serious, I’d be laughing because politics right now is nothing but one big reality show. And it’s kinda funny. It would be funnier if
it wasn’t so serious and so dangerous for most of our lives. – [Kim] And so, what I like
about Harry is, we’re gonna talk about how do you turn
all of that upheaval, and all that craziness
into your advantage? – [Robert] Right. – [Kim] So welcome to the program Harry! – [Harry] So nice to be back. – [Kim] Great to have you back. – [Robert] So first of all,
tell me, when gold goes when’s gold gonna go to
400 so I can load up again? (Kim and Robert laugh) – [Harry] Okay, first of all I have revised that forecast
since that book came out because I have a bubble model. And gold did bubble up
7.7 times in several years more than the stock market
and a lot of other markets and it did crash like every
bubble but it based out you know, between 1000
and 1400 for a good while and I think it may have one more drop. I’m just looking for the deflation play and deflation just does not work into gold’s advantage from what I see. But, I now see that the
lowest I see it going is more like 700ish. (Robert groans) And then you’d have a
long-term bull market. But you know, gold, you
have to remember that gold goes with commodities more
than anything, Robert. In the 30 year commodity
cycle, what peaked in 1980? Almost all commodities and gold and silver and they all crashed together
in the early to mid ’80s. So now they’ve bubbled up and-
– Now c’mon, make me happy. – [Robert] Tell me it’s
400. Tell me it’s 400. (Harry and Kim laugh) – [Kim] So Harry, do you see a big deflationary period coming? – [Harry] Yes I do. I mean, things go in stages. You get mild inflation,
you get high inflation you get falling inflation,
you get deflation. This is the Kondratiev wave
that a Russian economist discovered in the early 1900’s and it plays out over and over again. It’s just like every business cycle. Innovation, a growth boom, a shakeout to see who the leaders are, and then a maturity boom and decline. So, it’s the same thing. So, deflation is the next step. I always ask economists, especially the gold bugs like Peter Schiff that tell you, “Oh, hyperinflation, “all this stuff is going down,” and I say “Okay. We printed
12 trillion dollars on top of “the normal reserves in the
last you know, nine or 10 years, “and we got 0, 1, 2% inflation “at most in the country.” What do you think would have happened if we hadn’t printed 12 trillion dollars Which normally in any
other time in history would have obviously been inflationary? And the answer is, we would
have been in deflation. We started a deflation period that I predicted decades before. 2008 to 2023, I call it the winter season. Demographics peak, fall bubble boom, and then that bubble bursts
and all the debt around it and then that destroys
money and debt and wealth and then that causes less
money swirling around and you get deflation on assets. You get deflation on consumer prices and that was the economy
from 1930 to 1942. That was the winter season. We were going into that, and how did the central banks
stop that, or put it off? Print trillions and
trillions of dollars of money and when that started wearing out Donald Trump gives a trillion and a half of free money tax breaks to businesses when they have the highest profits in all of history compared to GDP. – [Robert] What’s the bad news here? (all laugh) – So let me ask, this is my question. – [Harry] The good news is that deflation- – [Robert] Why did you choose
the title of your latest book? – [Harry] Deflation creates
the greatest opportunities- – [Robert] Yeah, but why did you call the title of your book Zero Hour? What does that mean? – [Harry] Because we keep
stimulating the economy one thing after the next
you know, one country, it was the U.S. and everybody at first and then Europe tapered off
again but the U.S. stepped up and then the U.S. tapered
and then Europe stepped up then Japan stepped up in 2013 when they were doing a nosedive because they have the worst demographics. I was the only guy in the
world that predicted 1989 that Japan was going to fall on their ass in the 1990s while everybody else boomed. Economists were saying “Oh,
Japan’s the new leader, “Europe and the U.S. are dead.” I’m like “Well, the demographics
aren’t saying that.” you know, and that’s very- – [Robert] But Harry, Harry, Harry why the title Zero Hour? Is that- – [Harry] Because you can’t live off B.S.- – [Robert] Are we at the end? Are we at the end of the country already? – [Harry] You can’t live off
free money and B.S. forever and we’re running out of that. And we’re the only country
left still growing decently only because of the Trump tax cuts, and that won’t work past… I mean, that’s gonna wear off. – [Robert] So you’re
saying the end is near? – [Harry] Yes. – [Robert] Okay, good, good-
– and what is it- – [Harry] I’d say within a year. I’d say now, because what I look at I mean that the top in January 2018 looked like a perfect final bubble pop. Everything I look for,
rising steep channel, and then you have an
overthrow over that channel, and then you break below that channel. You know, all this great stuff and you know what, it wasn’t it. It didn’t happen. We didn’t see a big enough crash. What I’ve found, ’cause
I’ve studied bubbles now as much as I’ve studied
demographics and cycles and technologies and urbanization
and emergent countries. All the things that matter
that economists don’t study. but I’ve found that when bubbles burst the only way you know a bubble’s over is when it’s crashed 30 to 50% in the first two to three months. And that did not happen
in January, February 2018 and it hasn’t happened on the last top in September, October. So I say there’s a good chance if we can not fall too much more in the early part of this year, 2019 we’re going to see one more
bubble up into late 2019 early 2020, like January or so. – [Robert] That’s good, that’s good. – [Harry] And that actually goes with an important 90 year technology. The greatest bubbles
happen every 90 years. That was the late 1830s and
of course the late 1920s and the great depressions. – [Robert] But aren’t we at the end of that Kondratiev cycle also right now? – [Harry] Oh, the Kondratiev
cycle was blown out by the baby boomers. – [Robert] Right. – [Harry] So it went, it
used to be 55, 60 years I was the first guy that realized plotting the same four stage cycle, but around now demographic booms and busts but people don’t understand that you know, I discovered demographics and how it’s important to the economy but it’s more of a recent
thing since World War II. We didn’t have middle class
people until after World War II. It was the assembly line
and all those innovations and cars and suburbia and all this stuff that created this middle class thing where the average person’s
making serious money for the first time in history. Not a grubbing peasant, I hate to call it. And that made demographics
much more important. Demographics always matter, but the technology cycles I study and the commodity cycles I study used to make more of a
difference in the economy. Now, that stretched the four stage cycle from 55 to 60 years on
two commodity cycles to two generation cycles, to 80 years. So first of all, that
blew the Kondratiev wave. Same pattern- – [Kim] Can you just say
what the Kondratiev wave, what exactly is the Kondratiev wave? – [Harry] Okay, the old one
was every 55 to 60 years you would see a spring boom
coming out of a depression with mildly rising inflation
and then you would see a peak, an inflationary surge and a recession and then that would blow off,
inflation would come down and you’d see a final bubbly boom and it’s always the most bubbly. A fall boom, and then that fall boom has the greatest debt bubbles, the greatest financial asset bubbles and when they burst you
wash out a lot of money and you get a depression to kind of detox, I hate to call it, better
term, but it detoxes, or deleverages that fall bubble boom. – [Robert] So, wait- – [Harry] We’ve had the same thing. – [Robert] Right, so was
that what happened in ’29? – [Harry] That’s what happened in ’29. That was the peak of the
fall bubble boom season and ’30 to ’42 was the winter season which was characterized by deflation and then the problem is for
stock brokers and people even in the ’70s, if you’d
have been diversified you could have made money
on Japan, and commodities, and real estate, while you
lost money on bonds and stocks. Well, most people, in mostly
bonds and stocks, you lost. But in the ’30s everything went down except for high-quality bonds. Everything, stocks,
commodities, real estate- – [Robert] Harry, Harry, but
wasn’t Kondratiev executed? Did they shoot him? – [Harry] I don’t care. (Kim and Robert laugh) they threatened to burn
Galileo at the stake! (all laugh) well, they did.
– Hey, so Harry- Hey, how long did Jesus
teach before they nailed him- (Kim and Robert laugh loudly) They didn’t tie him to the
cross, they nailed him! The more they go after you, the more you know what you’re doing. (Robert continues laughing) – [Kim] Yeah, hey, so if Zero Hour is about the end, what
does the end look like? So if we’re talking like a year out, what does it look like,
what are people to expect? – [Harry] It looks like
early 2018 looked like at first, but didn’t follow through. you see a blow-off top and then you see a very
serious burst crash I mean, again, the first crash in ’29 in 2.3 months was 49%. That was saying “Guess
what folks, game over.” The Nasdaq crashed the
first 2.6 months, 41%. I averaged out six bubbles
over the last century stock bubbles, and the
average first crash was 42% in the first 2.6 months, very
close to that Nasdaq crash. So that’s the first sign,
– So did you- and we haven’t seen that sign yet. So the end is coming, we’re
close, but until I see that or see a downturn that looks
like that in the making I tracked the recent
downturn and it did not track with those past first
crashes which is telling me this looks more like a
correction in late 2018 and that we’re going to at some point have one more bubble up in 2019. This bubble, it just keeps
getting fed by governments and Trump has fed it, is the
last guy to feed this bubble. – [Robert] That’s correct, that’s correct and it’s wonderful stuff. So when we come back,
you know, we can talk about gloom and doom but for me it’s all good news! – [Harry] Yep, it is to me too. – [Robert] It’s all good news! So when we come back we’re going
to get into your other book it’s called The Sale of a Lifetime. You see, I’ll say it again in 2007 Kim and I thought
we’d died and went to heaven because we’re real estate guys and all that subprime crash hit and all the CDO, MBS, all
that other stuff blew up in everybody’s faces,
everybody cried the blues but that’s when we started to buy. So all of this bad news
is really good news. And when we come back, we’ll have more of Harry Dent, economic forecaster. So we’re going to get
up to the good news here which is how you’re gonna get rich when this all comes tumbling down. (upbeat music) – [Announcer] You’re listening
to The Rich Dad Radio Show with Robert Kiyosaki. – [Woman] Don’t be like Charlie. Charlie is that do-it-yourselfer
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or call 800-600-1760. Mention Rich Dad and receive 100 dollars off your formation fee. That’s, – [Robert] What is your
number one expense in life? Your number one expense, it’s taxes. And I’ll go ahead and ask the question. How come there’s no
financial education in school but why isn’t there
education on taxes either? You know, they tell you to
save money which is stupid. They tell you to invest in the
stock market which is stupid. But why don’t they teach you about taxes? So here we have Rich Dad
advisor Tom Wheelwright. We’re talking about his revision for his book Tax-Free Wealth. Welcome, Tom. – [Tom] Thanks Robert. – [Robert] So what’s
Tax-Free Wealth about? What’s different this time,
in said revised edition? – [Tom] Well, so, what we did was… This is the first major tax reform we’ve had in 30 years, in 2017. – [Robert] Right, was ’86 the last one? – [Tom] ’86 was the last one, back when I was in Washington D.C. – [Robert] So many guys got wiped out because of that tax change. (tom laughs) – [Tom] They did, they did. It wiped out an entire
industry, savings and loans. This new tax law is just as big but in a very different way it effects different industries you know, the tax law is
always a series of incentives and the question is which incentives and which ones apply to me? And so, the key to
revising Tax-Free Wealth was what changed so
much in this new tax law that we can absolutely take advantage of? And I mean seriously,
the amazing incentives for example the bonus
depreciation for example for real estate is unbelievable. You can buy a million dollar apartment get a 300 thousand
dollar deduction or more the very first year. – [Robert] So if you
want to make more money and pay less taxes like
Donald Trump and myself, get Tom’s Book Tax-Free Wealth. (guitar solo) – [Announcer] Log on to while you listen now, back to Robert Kiyosaki. – [Robert] Welcome back! It’s Robert Kiyosaki with
the Rich Dad Radio Show the good news and bad news about money. I guess we’re talking about
the eve of destruction and how you get very rich in a crash. You see, most people think it’s terrible. If you’re a professional investor,
you think it’s wonderful. Anyway, you can listen to
The Rich Dad Radio program anytime, anywhere, on iTunes and Android and all of our programs are
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kind of product like that but we want you to
learn, and we archive it so that you can listen
to this program again especially this program with Harry Dent, economic forecaster, and
you can listen to it. Listen to it a second time,
you’ll learn even more but you’ll learn even more and more if you have your friends,
family, and business associates listen to Harry Dent’s
forecast and discuss it. If you discuss it with your friends, your whole intelligence
will go through the roof and you’ll understand what
Harry Dent is trying to say. And what he’s trying to say is we’re on the eve of destruction. For most people, that’s bad news. For some people, it’s great news. Any comments, Kim? – [Kim] Yeah, well, we’ve
had so many guests on and economic people all saying that there’s this crash coming the problem is, most people
only know how to make money when the markets go up. And so, our job is to
educate and make you aware that hey, something else is coming up and that’s what Harry’s
going to talk about is when the market comes
down, how do you profit? How do you make money? And most people don’t
take the time and effort to learn how to do that. So I would say, learn how to do that. Because it’s probably coming. – [Robert] So, Harry,
before the Zero Hour hits, which is your latest book, Turn the Greatest Political
and Financial Upheaval in Modern History to Your Advantage which came out in November
2017, again, Zero Hour. Where do you see the opportunity? What’s the good news here? – [Harry] Well, I think longterm since the markets did not crash as fast as a real top would have suggested I think the markets may be basing and we may see some more
downside in early 2019 first but if the downside doesn’t break especially my critical
target line in the sand for the Nasdaq which is the leading sector of this whole bubble market. The tech stock, is 55 hundred. If it can hold 55 hundred it could still bubble up
one more time from there and that’s exactly what
happened in the last tech bubble late ’98 there was a short
couple month crash like this down 37 percent for the tech stocks and then they turn around and went up 250 percent
in a year and a half the greatest final blowoff rally. Now, they don’t have
that much latitude here. What happened there, the
internet stocks were part of that and the crypto stocks
and other things are not. So, you won’t get as extreme, but we could see one more strong bubble led by the tech stocks, and boy… So you play that if we don’t
see too much weakness ahead and then, I’ve got real targets for this, 94 hundred to 10 thousand in the Nasdaq if we get a final bubble. If you see that, you
sell and you turn around and short or just get in cash save bonds and wait for the big crash. – [Robert] So, what you’re
saying is the FANG stocks, which is completely manipulated, might be the next opportunity but you gotta get out at the right time? – [Harry] Yeah, and then same thing, I’m speaking at a super elite
crypto conference this weekend and same thing, if stocks
bubble, I’m telling you Bitcoin will bubble one more time and then it will crash and burn like the internet stocks
did and go down 90 percent. (Robert laughs) I’ll give you an example
of also buying in the crash Amazon in a year and
a half went up 4,328 % in the top of the tech
bubble as a late-coming internet bubble stock, super bubble, crashed 95% and then went up 220 times 37,114% between 2001 and now. One of the greatest runs in history. Imagine if you’d have bought Amazon when it was like seven bucks on its back. Because, hey, yeah, a lot
of companies were failing but who was the big boy on the block? Amazon. Not too hard to pick out who’s likely to survive a shakeout in the
internet industry back then. Buy Amazon, the strongest players, and you’ll make a fortune. – [Kim] So other than
Amazon and the tech stocks what other areas are you
seeing that could be booming? – [Harry] You know, I
think the banks may do well in that final stage, because
they’ve underperformed. Consumer discretionary, consumers are like really happy right now and they’re not going to be for long ’cause they’re coincident indicators. They’re nobody to look to for the future. – [Kim] What about healthcare? – [Harry] Healthcare has done well. Healthcare is one of the few demographics that are still favored
after the baby boom peaked in most areas around 2007 and
we got into this difficult 2008 crash and recession. The whole reason we have
all this quantitative easing is we got a patient in the emergency room that’s in a coma and we have to constantly feed this patient to keep them from dying. They’re just trying to keep
a dead economy from dying and put off the deflation
and deleveraging that would actually heal the patient
and get rid of all the ex- – [Robert] So, Harry,
Harry, Harry, Harry, Harry. We don’t care about the patient right now. I want to know about demography. What do you see happening for- – [Harry] How do you see the opportunities if you don’t know if the
patient’s gonna live or not? – [Robert] Well, I wanna find out about the demography of the millennials. What’s your forecast for them? – [Harry] Okay, the millennial boom, really, because, yes,
there’s some millennials already spending money. Most millennials are still
not in the workforce yet. So, their spending wave, just like the baby boom
was 1983 through 2007, the millennial spending
wave is, the first one, ’cause there’s two of
them, 2023 through 2036. So when we get there, by then this bubble will have burst and the next generation will be driving the economy up not as strongly as the baby boom but still strongly enough
after a major crash that stocks, and real estate, but I’d say mainly
stocks would be the most Stocks, and commodities will do very well but the thing that’ll do the
best is emerging countries. – [Robert] What about
housing for millennials? Are they going to be able
to buy the McMansions the baby boomers are leaving behind? – [Harry] They won’t want to
at first, that’s the problem. They won’t be in that stage until later. The McMansions are the worst place to be. They will want affordable starter homes. A lot of the millennials never bought because they didn’t feel
they could afford it or they’ve seen housing drop for the first time in their lives and the baby boomers never saw that so they thought real
estate could never go down. I’ve preached against that for a long time but people never believed
me until it happened. And I used to say, when people
say, “That can’t happen.” I’m like, “What are you talking about, “that already happened in Japan, “down 67% in the ’90s.” – [Robert] So hang on to your McMansions for another 20 years, you
might have a chance, right? – [Harry] No, sell them now. (Kim laughs) – [Robert] Who’s going to buy them? Everybody’s broke. – [Harry] Well, still, I’d
rather sell it at a discount now than sell it when
everything’s on its back. – [Robert] So, as far as demography goes what do you say for the
baby boom generation? What’s your forecast with them? – [Harry] Nursing homes. – [Robert] Ah, good news. – [Kim] Oh, that’s good news for us. (Kim laughs) – [Robert] Oh, god, we’re
building this huge nursing home. – [Kim] Yes we are, senior housing. – [Robert] I’m going to
get the penthouse, Harry. – [Harry] Yes, exactly. (Robert laughs) Cruise ships, and nursing, cruise ships, prescription drugs,
what I call legal drugs baby boomers have been taking
illegal drugs all their lives now they get to take a lot of legal drugs. So, cruise ships,
pharmaceuticals, things like that vitamins, all this sort of stuff weight loss is going to peak pretty soon but that’s a big area now. But nursing homes is the last
thing baby boomers don’t enter the spending wave for nursing homes for baby boomers doesn’t start until 2019 and it’ll go straight up to 2045 it’ll be the biggest boom and
nobody will see it coming. – [Robert] Well we see it coming and we’re very happy
about the old guys, right? which is my age, but anyway. (Kim laughs) – [Harry] As long as you don’t have to change their bedpans, okay? – [Robert] We’re building
luxury senior living places. So anyway- – [Harry] And you can
afford robots to do that. – [Robert] Yeah, that’s
good news, that’s good news. So, anyway, what do you
think about my friend Donald? How’s he doing? – [Harry] Well, unfortunately,
I hate to say it I mean, Donald is a great promoter and he knows how to read people and when he started campaigning
I think he picked up very quickly something that
the other politicians didn’t and that was his genius, that the people that really had the energy and were really unhappy were white people that lost their middle class jobs to brown people here,
Mexico, China, and overseas. – [Robert] That’s a
demographic shift, right? Right there. – [Harry] Yeah, and that’s what happened. They didn’t become bad
workers or anything. It’s just that these skills, these middle class assembly line jobs by definition by Henry
Ford, that created them “Don’t take a lot of skill.” That’s why he created them the way he did. So when these emerging countries come up like China or Mexico
or Mexican immigrants, I don’t care if the immigrants come here. I’d rather they come here,
because at least they’re working, contributing to the
economy, paying taxes here. They can still kick your
ass from Mexico or China or Indonesia. – [Kim] And how is that
different than European… All the refugee immigrants? – [Harry] Well, it’s the same thing. I mean, well, they’ve got… Are they employing these people in a Mcdonalds over in Europe? No, they’re not, they’re in refugee camps because they can’t function in Germany they can’t speak the language. They don’t have the skills. They’re coming from super poor countries. They’re coming from countries
that make Mexico look rich. (Robert laughs) So that’s a different thing. These are not… And again, you could also have
immigrants like Australia. I speak in Australia once or twice a year I’m more popular over there because they don’t have so
many superstars over there. (Robert laughs) And, man, there it’s a third
Asians and they’re all kick-ass and they’re more educated and productive than the average Australian. Their immigrants are above them. – [Kim] So I like what you said when we were talking at the break, you said, “People coming
from Mexico to the U.S. “They’re coming for
opportunity, where the refugees “are escaping a bad situation.” – [Harry] They’re
escaping a bad situation. They’re forced to, they’re destitute. The Mexicans are coming
because they want a better life and even with no education, you know what? Most of them rise, they do not cause… Donald’s wrong about
this, he’s just pandering to his all-star wrestling
fan crowd, I hate to say it. (Robert and Kim laugh) He picked up, these are the people, and my father was a political strategist that literally got Nixon
elected with a similar strategy. all-star wrestling fans,
they’re the swing vote. (Robert laughs) And he got Nixon to carry
the south against Wallace by doing that, so that was
genius, but he’s wrong. These people are not criminals and they do contribute. But it doesn’t mean you
should let them in illegally. – [Robert] So what is
your forecast for Asia, – [Kim] And china. – [Robert] You have China, you have Japan, and you have Korea and all
this, what’s going on there? What do you say is the forecast for that? – [Harry] Well first of all, Japan was the star of this whole bubble. They peaked in ’89. Their real estate peaked in ’91. They crashed and had their bubble burst and everybody acted like “Oh,
that’s just the Japanese.” No, this has happened everywhere. Their baby boom hit them earliest and then everybody else later. So, they show what happens
when bubbles burst. Japan has actually been in a reprieve. People say “Oh, it’s Abe’s arrows.” Oh, B.S. Japan had its millennial
generation come up and they’re gonna peak in 2020 a year and a half from now and then they’re going to go into another deep demographic downturn and they’re already only
growing at zero to 1% with stimulus three times what we put out compared to their GDP Japan is the dying economy of the world. And Southern Europe, and Eastern Europe, and a lot of other areas
are going to follow them. The tigers, the Asian tigers, South Korea is the last to peak. They’re going down after 2018. Europe has slower demographics than we do but Northern is stronger than Southern. I mean, I can nail demographics
anywhere in the world I can nail urbanization
and rates of GDP growth most of the stuff in the world is so predictable you wonder what the hell are economists looking at? (Robert and Kim laugh) unbelievable. We’re going to be 85 to 90% urban by 2120. I can say this today with high confidence. And the wealth, the GDP
per capita of the world is gonna be two and a
half times higher by then. People think the world’s coming to an end ’cause demographics are slowing in areas but the third world is coming up and I can see very
likelihood from past surges that life expectancies is going to go up again sometime in the coming decades. And that’s going to change
the demographic slowdown that otherwise would take us into zero growth by later in the century. But it’s not gonna happen. Because I’ve got other
cycles that say, “No.” – [Robert] So, anyway, Harry, we’d love to have you back on. Like I said, you’re the
guy that opened my eyes to demography or demographics as destiny and you know, being a baby boomer I’m just watching the
destiny come up right now. And I like what you said
about retirement homes because that’s the business
Kim and I are shifting into. Anyway, it’s always good news
even if it goes up or down. So thank you for your contribution. – [Kim] And you can get
Harry’s free newsletter Economy & Markets at – [Robert] So, thank you, Harry. – [Kim] Thank you Harry! – [Harry] Okay, thank you guys. – [Kim] Alright, take care. – [Robert] When we come back we’ll go on to the next most popular part
of our program , Ask Robert. – [Announcer] You’re listening
to The Rich Dad Radio Show With Robert Kiyosaki. (upbeat music) – [Woman] Don’t be like Charlie. Charlie is that Do-it-yourselfer
who does himself in. Do-it-yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property,
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or call 800-600-1760. Mention Rich Dad and receive 100 dollars off your formation fee. That’s, (funky music) – [Announcer] Financial freedom begins with financial education. Now back to Robert Kiyosaki
and The Rich Dad Radio Show. – [Robert] Welcome back,
It’s Robert Kiyosaki with The Rich Dad Radio Show the good news and bad news about money. Once again, you can listen
to The Rich Dad Radio Show at anytime and anywhere
on iTunes or Android. And all of our programs are
archived at Again, the reason we archive them is because we’re an education company. We make no recommendations
on what to buy or sell but we are an education company which means the more
you listen to something you listen to this program one more time especially with Harry Dent, you’ll learn twice as much as you did the first time. Most importantly, get together with friends, family,
and business associates, listen to Harry Dent one
more time and discuss it. You’ll find your intelligence skyrocket. You will see and realize things you may not have realized before. So, once again, I want to thank Harry Dent and his always interesting
way of looking at life. He’s a very smart man. He’s the guy that opened
my eyes up to demography which is demographics, because
demographics is destiny. Look at the old guys, my
generation, baby boomers the big opportunities in old
age homes and pharmaceuticals. Not illegal drugs, but legal drugs. (Kim laughs) So there’s always an opportunity and the point is, no matter
if things are good or bad there’s always opportunity
if you keep your eyes open. Any comments, Kim? – [Kim] Yes, I mean, this is a
good show to listen to again, because there was a lot of little details that Harry was throwing out there and important ones, things to look for, indicators, you know, such
as you said, if Nasdaq goes to 94 hundred to 10 thousand
sell short, get out. Little things like that. So it’ll be interesting
to see how it plays out according to some of
what his predictions are. – [Robert] Yeah, and that’s
Harry’s recommendations not our recommendation because we don’t play the stock market. – [Kim] No, and you can
get Harry’s free newsletter I think it’s a daily newsletter. It’s called Economy & Markets, and it’s So you can listen to his
predictions and his forecasts. – [Robert] He’s a very bright man. As you can see, nobody has
the same point of view. Like, I was thinking if
we could get Peter Schiff and Harry Dent to go head to head. [Kim Laughs] – [Kim] Peter Schiff, I
think gold’s going to wear Like 10 thousand or something… (Kim laughs) – [Robert] Oh, Jesus. – [Kim] Harry came up
from 400 to 700 now, so. – [Robert] Yeah, I mean, Harry said gold was gonna go to 400
dollars, I got excited, and Peter Schiff went to kill him. (Kim laughs) So anyway, that’s why we have
The Rich Dad Radio program we gotta keep an open mind, everybody has a different point of view. – [Kim] Yep, that’s exactly right. – [Robert] So once again,
you can submit your questions to Ask Robert at So, Melissa, what’s the first
question for Ask Robert? – [Melissa] Our first
question today, Robert comes from Zack in Coeur d’Alene, Idaho Favorite book, Rich Dad, Poor Dad. “How do you get passionate and
emotionally vested in an idea “and then not get discouraged “if that idea does not work out?” (Robert laughs) – [Robert] Do you know how many times I’m always asked that question, I think that’s the problem
when you go to school. The problem with going to school is that you always have to be right
and you can’t make mistakes that if you fail, you’re stupid. Well, look, if you’re
going to be an entrepreneur you’re going to fail, your
ideas will probably not work but this is what I’ve said to
so many budding entrepreneurs. If you only have one idea
you’re not gonna make it. Like a lot of times, I
failed, you gotta stand up and you gotta come up with a new idea. How do you do something different? So the ability to think creatively and rapidly, and take that risk, and correct if you have to, is something that is punished in school. It’s called creativity. (Robert laughs) ’cause in school there’s
only one right answer and it’s the answer the teacher
wants you to give to them. And, so, that’s why I
get a little discouraged at times, and upset at
The Rich Dad Radio program because so many of the questions are “What if I fail?” “What if I make a mistake?” You know, a kid doesn’t ask that when the kid is crawling and wants to stand up and fall down the kid doesn’t go, “But
what if I fall down?” “what if I fall down?” Well, then never learn to walk. Or, “What if I fall off my bicycle?” Well, then never learn to ride a bicycle. So, one of the biggest problems
with our academic system is they teach people that
failure means you’re stupid. And, so, many people are so
terrified of making mistakes and having a new idea, and
trying something stupid. You know, because, that’s how
you get successful, right Kim? – [Kim] Yeah, you gotta go out there and you gotta do something. You know what, it’s kind
of like when Zack says, “What happens if it doesn’t work out?” Well, my question is, why
is it not working out? So it goes back to my golf instructor. My golf instructor, I’ll say to him, “Oh, I had a terrible round
of golf the other day.” and he said, “Well, what specifically?” and I’m like, “Well, my
putting was really good, “and my chipping was really good, “but I just couldn’t get the ball “in the fairway off the tee.” and he’s like, “Okay, so
your game wasn’t horrible. “You just have to work
on this part of it.” so when he says it’s not working out, is it not working out
because it’s just an idea that nobody wants? Is it a product nobody wants? Is it not working out
because you’re hitting walls like you were talking about, Robert, and you’re failing but you’re not learning from the mistakes and you’re
not growing with the mistakes? Is it not working out because somebody’s telling you it’s not? “Why is it not working out?” Would be my question. – [Robert] Well, let
me give you an example. I came up with a nylon
velcro surfer wallet business in the ’70s and nobody bought it. It didn’t sell. So we had 100 thousand wallets we shipped from Korea to New York. We’re going broke so fast
we couldn’t stand it. So, out of desperation, I had
to come up with another idea. And that product was a shoe
pocket for runner’s shoes because running was really
big during the ’70s. So I created the shoe
pocket, and that shoe pocket became the number one
product in sporting goods in 1978, but because
the shoe pocket took off everybody wanted to know
what other products do I have the other product I had was
100 thousand nylon wallets (Kim laughs) sitting in a warehouse
in Long Island, New York. Now, if I hadn’t failed,
and I hadn’t created another product called a shoe pocket which was in Playboy magazine and the number one
product of the year in ’78 I would have kept failing. – [Kim] Yeah, well that’s a great point because most people would have quit if they didn’t sell those wallets. They would have quit. – [Robert] That’s all I really want… Education is more important, but school teachers are not
necessarily rich people. Most of them are school teachers because they’re risk adverse. So be very careful who you learn from. My father, poor dad, he failed once. He bought himself an ice
cream franchise and failed. He couldn’t stand up again. And that’s the problem
with going to school. Also the problem with going to school is if you ask for help it’s called cheating. You know, I cheated my
whole way through school I always sat next to the
smartest girl in class so I could get the good answers. But that’s cheating in school. So please be careful about education because education is more
important than before but if you’re gonna be an entrepreneur and a professional investor you’ve really got to be able to understand how to think creatively, make mistakes, and come back up and go again at it. Or, if you don’t want to do that then go to school, get a job,
and put your money in a 401k buy a hold, and pray. That might be better for you. But it really breaks my
heart to have so many people, “But what if I fail?” “What if I make a mistake?” “Oh my gosh.” Well, you should have gone to school, kid. You need a better education if you’re going to be an entrepreneur. Next question, Melissa. – [Melissa] So, Robert, we
have a couple of questions here on gold and silver, and
we’re gonna kind of answer both of them here since
they’re somewhat related. So, first we have Johnathon
from Houston, Texas, favorite book, Cash Flow Quadrant. He says, “I’ve decided to
purchase gold and silver “but I’m stuck on the storage aspect. “Where do you think
it’s best to store gold, “and can you trust anyone
outside of our country?” and then the second question
comes from Ka in Singapore, and it’s about, before starting
to invest in gold and silver what books or articles
should someone read or study before they get started? – [Robert] Well, it’s
not that complicated. Gold and silver is pretty simple. – [Kim] Pretty simple. – [Robert] Because, the beautiful thing about gold and silver, coin,
not ETFs and that garbage but gold and silver,
there’s no counterparty risk counterparty risk is
like if you buy a bond the risk is, is the guy
going to pay me back? Well if you hold a gold coin
there’s no counterparty. That’s God’s money. My book Fake is coming out, it’s about God’s money, gold and silver. But if the first thing you’re gonna do is buy gold and silver, don’t
tell anybody you bought it. And buy a small amount, buy one gold coin and one silver coin. – [Kim] Yeah, just one silver coin. – [Robert] And then
you have to buy a safe. Sometimes you wanna buy two safes. I call that a dummy safe and a real safe. So, a dummy safe, in case somebody comes into your house and says,
“Show me your safe.” you show them the dummy safe. And in the dummy safe you have
fake jewelry and fake watches and fake Rolexes in there,
and they help themselves. So they’re happy because
they got the dummy safe. But then you gotta have a real safe which is really where it’s kept. And the reason you want a
dummy safe in your house is because the reason you
keep gold and silver in case there’s a crisis, like
the banking system shuts down you need access to that
gold and silver and cash. So the safe should be close,
nobody should know where it is. – [Kim] Not a safe deposit box in a bank, because the banks will seize it. – [Robert] No, and then
when you have a lot of gold and silver,
then you move overseas. So Kim and I do all of it. But we started very very small. My first gold coin was a Krugerrand. I bought it in Hong Kong in 1972. I paid 50 dollars for it. Today it’s worth about 15 hundred dollars. So I’d rather save gold
and silver than dollars. That’s what I’m trying to say. – [Kim] And you know the
fastest way to learn, and this is what Robert and I do, is we go out and we go buy something. So go buy a silver coin. What’s it going to cost, about
16, 17 U.S. dollars today? – [Robert] 20 bucks. – [Kim] 20 bucks. So you go out and buy it. – [Robert] You could buy a silver dime for two bucks if you had to. – [Kim] Right, but as soon
as you put some money down all of a sudden, your
education’s gonna go up ’cause you’re gonna start seeing articles and you’re gonna start seeing online what’s the price of gold,
what’s the price of silver what’s it doing, why’s it doing? Put some money down, even 20 dollars. It’ll increase your learning tremendously. – [Robert] And you might make
a mistake and learn even more. – [Kim] Yeah, even better. – [Robert] So once again I
want to thank you all for… Especially Harry Dent,
you can go to his website It’s a free newsletter Economy & Markets. You’ll learn a lot, listen to him. I’m not saying I agree with
him, but you can learn a lot. And if there’s a crash
it’s wonderful stuff. And then also you can
submit your questions to Ask Robert at So, thank you for
listening to our program.

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