How To Beat The Fed
- Financial catastrophe is unfolding…
- Here’s what YOU can do to protect yourself from the “Fedspeak”…
- Find out what you could do with $20…
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Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily
Dear reader,
“Central banks are made up of bureaucrats & academics who do not know what they’re doing. they do not know how markets work. They don’t know much about the real world. These guys can’t save the world. All they want to do is save their jobs.” – Jim Rogers
The horrifying truth is that (at least for the foreseeable future) the fate of the global economy will be determined by what the Fed does during the months and years ahead.
Academic-elite experts that make up the Central Banks have little real-world financial education or actual experience. They live in ivory towers and, in most cases, are salespeople, more interested in getting you to buy what they’re selling than they are in mentoring and guiding you through the complex financial world.
As the current financial catastrophe unfolds, millions of innocent hard-working people will be sent to financial hell by these soulless leaders.
This is where I and other real teachers come in…
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Invest Outside Of Wall Street
Kim and I invest outside Wall Street. We retired at the ages of 37 and 47, respectively because we did not have to deal with the academic elite who are employed by GRUNCH.
Kim and I “beat the Fed” by not buying into their snooty academic elite, corporate elite attitude.
I’ve written a lot over the years about why Rich Dad Poor Dad was originally self-published because it was rejected by the academic elite employed by the major book publishing houses in New York.
The academic-elite editors objected three of the book’s main points: The rich do not work for money, your house is not an asset, and savers are losers. These lessons from my rich dad—taught decades ago and time-tested by Kim and me over the past several decades—are how we beat the Fed.
In 2019, when I was writing FAKE, we were able to capture the entire essence of the book in the subtitle: Fake Money, Fake Teachers, Fake Assets. And today, as I revisit the machinations of GRUNCH, I’m reminded, yet again, that control of all three of these components—money, teachers, and assets—are required for GRUNCH and company to work its magic with money.
In my teaching and presentations, I talk a lot about teachers; teachers in the school systems but also those we look to for information and guidance and mentoring throughout life. I talk about understanding the difference between a teacher and a salesperson.
Many of the academic-elite experts on Wall Street have little real-world financial education or actual experience. They live in ivory towers and, in most cases, are salespeople, more interested in getting you to buy what they’re selling than they are in mentoring and guiding you through the complex financial world.
In his book Tailspin, Steven Brill—a Yale undergraduate and Yale Law School graduate—writes a damming account of how these “elite” graduates from our best schools have actively destroyed the global economy. And they did it by producing toxic, financially engineered assets (financial Frankensteins) and exporting them to a naïve and unsuspecting world.
Change Your Mindset → Avoid Catastrophe
The other day, my wife, Kim, told me that she saw more people than she’d ever seen standing in parking lots looking for jobs. Everywhere you turn, someone is looking for another job.
Why don’t you transform yourself financially? I ask. Why don’t you complete a financial metamorphosis and become an entrepreneur? Yet, over and over again, people come up to me and say that being an entrepreneur is risky. “I’d rather have a safe, secure job,” these folks say. Today it’s clearer than ever, the problem is that there is no such thing as a safe, secure job; and being an employee is one of the riskiest things you can do.
I faced this lesson as a young man. Both my rich dad and my poor dad recommended that I go to college and get a degree; it was after receiving the degree that their advice took different paths.
After graduation, my rich dad advised me to continue my education by getting jobs that were based on learning. “You should work to learn, not to earn,” he said. “That is the path to financial freedom.” He wanted me to get the valuable business and investing skills I needed to be a successful entrepreneur and investor, working on the B (Business) and I (Investor) side of the CASHFLOW Quadrant.
My highly-educated dad, my poor dad, constantly advised: “Go to school, get good grades, and then get a safe, secure job.”
He was recommending a life path focused on the left side of the CASHFLOW Quadrant—the E (Employee) and the S (Self-employed). My highly-educated dad was concerned with job security, not with financial freedom.
When I turned down a high-paying merchant marine job in order to sell at Xerox, my poor dad was disappointed, but my rich dad applauded the move. Those first years at Xerox were hard, and many times I wanted to give up, but I applied myself to learn how to sell, eventually becoming the top producer. The sales skills I learned were invaluable for later in life because the ability to sell is the most important skill you need to be a successful entrepreneur.
I chose growth over security, and it paid off. That was my financial metamorphosis.
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In Conclusion: How To Beat The Fed
Education is our best weapon in fighting—beating—the Fed. And it can start with simply changing the words you use and how you think about money.
At the same time that Fedspeak provides “forward guidance” warnings for the rich, that same Fedspeak blinds the poor and middle class, as their lives and wealth are looted.
The poor and middle class continue to be encouraged—advised, even—to “save money,” while the Fed is warning the rich on QE and ZIRP. For generations, parents (who probably learned little if anything about money in school) have told their children to: “Go to school, get a job, work hard, pay taxes, save money, buy a house, your house is an asset, get out of debt, and invest for the long term in a well-diversified portfolio of stocks, bonds, mutual funds, and ETFs.”
Words have power. And that’s why changing the words—those in your head as well as those you speak—is the first step if you, too, want to beat the Fed.
Regards,
Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily
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