“Bitcoin is reaching new heights, yet it’s the prospect of World War III that worries me most,” stated Robert Kiyosaki. The renowned economist and author has reiterated his concerns over the potential for World War III to erupt amid escalating geopolitical tensions.
Simultaneously, he discussed the future of banks, which he believes will be grim. In a recent podcast with Gerald Celente, the publisher and producer of Trends Journal, they emphasized that “global uncertainties are escalating and are on the brink of a massive war. Concurrently, U.S. banks are facing significant difficulties,” leading to an increased demand for assets like precious metals and cryptocurrencies.
“We’re talking about the golden year… of gold, and the reason is that banks are collapsing – everyone knows it. Bitcoin is hitting the ceiling, but the topic that concerns me most is World War II.”
We’re on the verge of it right now
Kiyosaki inquired, and Celente clarified that currently, 300 regional banks in the United States have a negative outlook according to rating agencies such as Moody’s and Fitch, compared to only five the previous year.
“Commercial real estate loans are turning dangerously red, which has led to the following fact: “Banks are facing a $2 trillion debt wall.
$2 trillion in loans will not be repaid. It’s going to be a banking crisis we’ve never seen before in the world.”
Kiyosaki has consistently maintained that Bitcoin, his premier decentralized finance (DeFi) asset, could reach $2 million, a viewpoint that aligns with Cathie Wood, the founder and CEO of ARK Invest, which manages a number of exchange-traded funds (ETFs).
Mother of all bubbles
According to investor sentiment, stock valuations appear as extreme as they were in 1929 and 2021, periods which preceded significant market downturns.
“My impression is that investors are currently enjoying the double peak of the most extreme speculative bubble in U.S. financial history,” wrote author Robert Kiyosaki, who has repeatedly warned that super-speculative bubbles rarely end well for traders.
In previous periods, stocks generally reached a speculative threshold before suffering a sharp decline. For now, we see neither favourable valuations nor favourable domestic markets, while our overstretch syndromes remain consistent with the risk of bubbles, panics or crashes,” he warned.
Even with the adjustments we have made in this cycle, the current circumstances encourage a strong defensive posture – and not only.
“We are living the mother of all bubbles, and stocks, bonds, real estate will collapse. U.S. debt is growing $1 trillion every 90 days. The US will go bankrupt, save yourself,” the author tweeted.
Kiyosaki specifically highlighted the boomer generation. He stated in his podcast that the largest stock market crash in history is imminent and the primary victims will be the boomers, those born before the 1980s.
He particularly mentioned that in 2024, a recession is expected to occur, affecting both the US and the rest of the world.
The forthcoming major collapse is anticipated to mirror the 2008 recession, which, in my opinion, occurred shortly after the Federal Reserve created an excessive amount of money — trillions of dollars — in an effort to correct the economic missteps:
“My generation, the Boomer generation, is going to get hit hard because the largest stock market crash in history is on the horizon.
This crash will surpass the one in 2008, when Ben Bernanke, the former chairman of the Federal Reserve, injected trillions upon trillions of dollars into the economy,” the economist added.
“The US central bank is now repeating the same mistake by printing too much money during the Covid pandemic.”
He then voiced concerns regarding the young generation’s capacity to handle the impending economic downturn.
“Under Covid, they printed trillions and trillions of dollars and now we are in the biggest bubble in world history. When this bubble bursts, I wonder how many young people will have the inner strength, the guts, the strength to get up after they fall down, to get back up, to fall again and build the next economy – that’s my concern.”
