Macro

Kiyosaki: 'We're F'd' as Powell Admits Inflation Battle, Backs Gold, BTC

Kiyosaki warns of financial distress as Powell admits defeat to inflation, highlighting a shift to safe-haven assets like gold and Bitcoin.

By Barry Stearns

4/4, 06:01 EDT
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Key Takeaway

  • Robert Kiyosaki warns of financial distress following Fed Chair Powell's admission that inflation is prevailing, suggesting "We're F'd."
  • Powell's shift from dovish to hawkish stance indicates no imminent rate cuts until inflation trends closer to the 2% target.
  • Kiyosaki advises against trusting political leaders for financial security, recommending gold, silver, and Bitcoin as safer investments.

Powell's Hawkish Turn

Federal Reserve Chairman Jerome Powell, in a recent address to the Stanford Business, Government and Society forum, underscored the central bank's ongoing battle against inflation, marking a significant departure from earlier, more dovish tones. Powell emphasized that the Fed is not poised to reduce policy rates until there is substantial confidence that inflation is on a sustainable path back to the 2% target. This shift comes after the March Federal Open Market Committee meeting's dot-plot chart suggested potential rate cuts, a stance that has since evolved in light of persistent inflationary pressures.

Kiyosaki's Dire Warning

Robert Kiyosaki, the author of "Rich Dad, Poor Dad," reacted strongly to Powell's remarks, interpreting them as an admission that "inflation is winning" and signaling a departure from previous assurances that inflation would be kept at 2% or that it was merely "transitory." Kiyosaki's blunt assessment of the situation is that "We're F'd," highlighting the severe implications for the average American and their financial well-being. He has long criticized the Federal Reserve and IRS since their inception in 1913, pointing to a significant erosion of the dollar's purchasing power over the past century.

Safe Haven Assets in Focus

In the wake of Powell's comments and the ongoing uncertainty surrounding inflation, Kiyosaki reiterated his confidence in traditional safe-haven assets like gold, silver, and Bitcoin. Gold futures approached record highs, trading just shy of $2,300, reflecting heightened investor interest in assets perceived as reliable stores of value during turbulent economic times. Bitcoin, despite its volatility and regulatory concerns, continues to be viewed by some, including Kiyosaki, as a hedge against inflation due to its capped supply.

Street Views

  • Robert Kiyosaki, Investor (Bearish on the U.S. economy and inflation outlook):

    "Powell finally told the truth... The Fed can no longer promise inflation at 2% or that inflation is ‘transitory.' Again he finally stopped lying. Congratulations." "In my simple language it means ‘We're F'd,'" "savers are losers."