High-profile financial experts, including “Rich Dad Poor Dad” author Robert Kiyosaki and legendary investor Stanley Druckenmiller, have expressed concerns over the burgeoning unfunded liabilities in the United States, painting a grim picture of the country’s fiscal health.
In the world of finance and investment, prominent figures have voiced their concern over the looming economic crisis in the United States, citing skyrocketing unfunded liabilities surpassing $250 trillion as a major red flag.
Among these influencers is Robert Kiyosaki, renowned for authoring “Rich Dad Poor Dad,” who has recently declared the United States to be in a state of bankruptcy.
Kiyosaki communicates his apprehension to his substantial following of 2.4 million Twitter users. He advises them to safeguard their wealth in secure asset classes such as gold, silver, and bitcoin (BTC), citing escalating costs that the U.S. government has not yet funded. This presents potential economic difficulties in the near future.
Kiyosaki critically views the ongoing political debates surrounding the raising of the U.S. debt limit, which currently stands at $30 trillion, as an exercise in futility. The financial writer highlights the enormous value of financial market ‘derivative assets,’ quantified in thousands of trillions or quadrillions, emphasizing the precarious financial condition of the country.
Earlier, Kiyosaki had forecasted an economic downturn as a result of the Federal Reserve’s decisions to raise interest rates since the previous March, a measure taken to curb inflation. He points an accusatory finger at the Fed’s stringent monetary policies for causing regional banks’ downfall, predicting further collapses.
Kiyosaki persistently emphasizes the significance of gold, silver, and bitcoin as valuable hedges in potential recessions. In April, he even foretold a surge in bitcoin value, predicting a future price point of $100,000 and beyond.
Echoing Kiyosaki’s sentiments, renowned investor Stanley Druckenmiller too has expressed his alarm regarding America’s fiscal predicament. Druckenmiller asserts that the mounting debt liabilities and costs could potentially force the government to make severe cuts to social service programs, including social security and Medicare.
During a recent keynote speech, Druckenmiller highlighted the severity of the situation, stating that when considering the obligations the government has towards future senior citizens, the .U.S debt amounts to approximately $200 trillion, a figure much higher than the currently estimated $31.7 trillion national debt.
Druckenmiller advocates for immediate curtailment of social programs by the government to mitigate a potentially worse economic situation in the future. He staunchly believes that reducing entitlements isn’t an option, but an impending necessity to prevent more drastic measures in the future.