Robert Kiyosaki And Harry Dent Warn That Financial Armageddon Is Imminent

By Michael Snyder – Economic Collapse Blog

Financial experts Robert Kiyosaki and Harry Dent are both warning that the next major economic crash is in our very near future.  Dent is projecting that the Dow will fall to “5,500 to 6,000 by late 2017″, and Kiyosaki actually originally projected that a great crash was coming in 2016 all the way back in 2002.  Of course we don’t exactly have to wait for things to get bad.  The truth is that things are not really very good at the moment by any stretch of the imagination.  Approximately one-third of all Americans don’t make enough money to even cover the basic necessities, 23 percent of adults in their prime working years are not employed, and corporate debt defaults have exploded to the highest level that we have seen since the last financial crisis.  But if Kiyosaki and Dent are correct, economic conditions in this country will soon get much, much worse than this.

During a recent interview, Harry Dent really went out on a limb by staking his entire reputation on a prediction that we would experience “the biggest global bubble burst in history” within the next four years…

There will be… and I will stake my entire reputation on this… we are going to see the biggest global bubble burst in history in the next four years…

There’s only one way out of this bubble and that is for it to burst… all this stuff is going to reset back to where it should be without all this endless debt, endless printed money, stimulus and zero interest rate policy.

And of course he is far from alone.  Without a doubt, we are currently in the terminal phases of the greatest financial bubble the world has ever known, and it is exceedingly difficult to see any way that it will not end very, very badly.

Ultimately, Dent believes that we could see U.S. stocks lose two-thirds of their value by late next year

The Dow, I’m projecting, will hit 5,500 to 6,000 by late 2017… just in the next year and a half or so. 

That’ll be most of the damage… then it will rally and there’ll be some aftershocks into 2020… my four cycles point down into early 2020 and then they start one after the other to turn up… I think the worst will be over by 2020, but the worst of that will be by the end of 2017.

If that does happen, it will be a far worse crash than what we experienced back in 2008, and the economic consequences will be absolutely terrifying.

Another highly respected financial expert that is making similar claims is Robert Kiyosaki.  My wife is a big fan of his books, and I have always held him in high regard.

But what I didn’t realize is that he had actually predicted that there would be a major financial crash all the way back in 2002

Fourteen years ago, the author of a series of popular personal-finance books predicted that 2016 would bring about the worst market crash in history, damaging the financial dreams of millions of baby boomers just as they started to depend on that money to fund retirement.

Broader U.S. stock markets are recovering from the worst 10-day start to a year on record. But Robert Kiyosaki — who made that 2016 forecast in the 2002 book “Rich Dad’s Prophecy” — says the meltdown is under way, and there’s little investors can do but buy gold or silver and hope the Federal Reserve slows the slide.

I agree with Kiyosaki that one way that investors can shield their wealth is by getting gold and silver.  In a recent article, I explained exactly why I believe that silver in particular is ridiculously undervalued right now.

Kiyosaki also believes that the coming crash could be delayed a bit if the Federal Reserve decided to embark on another round of quantitative easing.  But even if that happens, Kiyosaki is absolutely convinced that eventually “it’s all going to come down”

Kiyosaki told MarketWatch that the combination of demographics and global economic weakness makes the next crash inevitable — but the Fed could stave it off with another round of quantitative easing, which might stimulate the economy.

The Fed turned more dovish at its March meeting, with the central bank penciling in fewer interest-rate hikes this year than were previously part of its implied framework. The Fed signaled those hikes would happen more slowly than had been anticipated earlier, owing to a weak global economic environment and a volatile stock market.

“The big question [whether] we do ‘QE4,’” said Kiyosaki. “If we do, the stock market will come roaring back, but it’s not rocket science. If we stop printing money, it crashes; if we print money, it goes up. But, eventually, it’s all going to come down.”

Another voice that I have come to respect is Jim Rickards.  He is not quite as apocalyptic as Kiyosaki or Dent, but without a doubt he is deeply concerned about where the global economy is headed…

Global growth is slowing both because of weakness in developed economies like Europe and Japan, and weakness in some of the emerging markets champions such as China, Brazil and Russia. The limits of monetary policy have been reached.

The evidence is now clear that negative interest rates don’t stimulate spending; they are only good for devaluation in the ongoing currency wars. World trade is shrinking; a rare phenomenon usually associated with recession or depression.

And he is exactly right.  The economic downturn that we are witnessing is truly global in scope.  Brazil has plunged into an economic depression, the Italian banking system is in the process of completely melting down, and Japan has implemented negative interest rates in a desperate attempt to keep their Ponzi scheme going but it really isn’t working.  In fact, Japanese industrial production just crashed by the most that we have seen since the tsunami of 2011.

Here in the United States, investors are generally feeling pretty good right now because stocks have rebounded substantially in recent weeks.  However, Rickards is warning that this rebound is very temporary

Stocks are clearly in a bubble. The stock market is ignoring the strong dollar, which in turn hurts exports and devalues overseas earnings. It is also ignoring declining corporate earnings,imminent defaults in the energy sector, and declining global growth in general.

Never mind. As long as money is cheap and leverage is plentiful, there’s no reason not to bid up stock prices, and wait for the greater fool to bid them up some more.

There is so much that we could learn from all these three men.

Sadly, just like we saw in 2008, most Americans are ignoring the warnings.

The mainstream media has conditioned the public to trust them, and right now the mainstream media is insisting that everything is going to be just fine.

So will everything be just fine as the months roll along?

We will just have to wait and see…

Comments

  1. Stingray says:

    Most sane people with even limited intelligence although observant would not argue with such predictions. The fact is printing money to prop up the roulette wheel can only serve as a limited relief. At some point any prop can fail. I feel sorry for those whose retirement is dependent on the market. I got out of the market several years ago and have no regrets. The affect of a market crash won’t effect many who read and post here but at some point as the price and availability of goods are affected many of us and our loved ones will suffer to some degree. Keep the faith, keep prepping and continue the fellowship with those here sharing their wisdom and ideas.

    • PrepperDoc says:

      I have mixed emotions. For three YEARS I have been waiting for the crash….but the verse in the bible says, “divide your portion to seven or eight for you DO NOT KNOW what disaster may come upon the earth.” — in other words, my belief that I can PREDICT the disaster may well be very faulty.

      And indeed I was faulty. During those three years I kept a significant amount in the mututal funds, invested in stocks, and made a bunch more $$$….only moving out of stocks as Tobin’s Q and other indicators (Nobel prize winning stuff) indicated it was time to move out. I still have 40% in equities…. but the corporations have borrowed so much and used it to buy back their stocks that I believe we could have a real problem….nevertheless I have made a TON in the markets in the past 20 years…..

      • gthomas says:

        Seriously dude, we get it. You made tons of money. It’s your mantra.

        • Word of caution says:

          I would like to know where these guys have their own money. These guys are watching all aspects of the market every day, every minute . We “normal people ” with jobs can’t do that. I believe if you were to ask them, they would say they have their money in the market but watch it to adjust if necessary. I wish they would just say that instead of the fear mongering. Keep an eye on the market and as you get closer to retirement put it in safer funds

          • gthomas says:

            You are correct inasmuch as they watch it closely and tune in to the biz channells, cghat on twitter, etc all day long. You would be amazed. By way of example, I have bought and sold an equity within a matter of a minute. You can also sell a stock without owning it and buy it back at a lower price and make money. It’s called shorting a stock and it’s complicated only in the sense that hard working folks would not have the time, inclination or desire to learn such an esoteric thingy.

        • poorman says:

          I made quite a bit of money also GT. I think his point is all these people saying the market will crash is not a reason to pull all your money and hide it under the mattress. Most of these guys just keep predicting that the market will collapse in the next year. then when that doesn’t happen the come up with some reason that it didn’t and predict it will happen the next year. markets go up and down,that’s what they do. if the crash they predict does come then the paper money you hide under the mattress is going to be worthless also.

          • gthomas says:

            I get it and have expressed the same sentiment w/respect to the doomsdayers sans balance. Not the takeaway in aforementioned post. He knows.

          • gthomas says:

            Moreover, “tons of money” and “quite a bit of money” is nebulous and oft-times used for cred. All relative. I once loss 2800.00 in ten minutes on a trade that went horribly wrong. Am I less aware of market forces or nah? Is that tons of money? For some, and me at one time, yep.

  2. JP in MT says:

    These men have a track record of correct predictions. Their time line can be off, but not by much. I have listened to Harvey Dent fo 15+ years. Wise man.

  3. Thomas The Tinker says:

    I’m thinking that some would say my $$$$$ preps are part of the problem with our current system. The more debt. that is paid off the smaller the pie gets for the herd.

    Nothing like heating up a credit card to pump up the ‘economy’. It was a true ‘Sac-row-fyse’ to cut up the AmEx card. Just that little bit removed from the digital balance sheets. The Guilt. Did I really shrink the economy with a pair of ‘Fiskars’?

    MD ya supply us with this sort of mind candy and it is hard not to succumb to the dark side and get edgy…. but the stash in the basement.. garage.. pantry.. attic.. back yard.. back of the BOV.. growing in our guerrilla gardens sorta mitigate the fear of things that may come.

  4. What ever the reason will be but only one thing has to happen in this country to create a starving America. All the food stamps, social security funds, housing allowances are all being funded by borrowed money or just plain printed money, this is why the Fed cannot quit what it is doing. Obama has gotten so much of the population reliant online Fed handouts that one week after it stopped anarchy would rein in every area of this country, it would be uncontrollable, and I think this was the far left plan from the beginning.

    • Chuck Findlay says:

      Obama has certainly made things much worst and accelerated it greatly on his watch. The handouts are decades old started by FDR and Johnson.

      It’s been going on long before Obama had control, while he is doing great damage, don’t just blame him, there are more then enough people (on both sides of the political isle) responsible for the downward slide of our problems.

      • Thank you Chuck for pointing that out. people seem to think Obama is the root cause of all the problems in this country. He has definitely contributed and helped to make things worse but we were in trouble long before he came into office. I am scared everyday by these people that can’t see past the last few years……… I wonder who ties their shoes for them?

  5. Exile1981 says:

    I live in Alberta and the last year as decimated our economy. In spring of 2015 the unemployment rate was under 5%. In the last year the changes in government (provincial and federal) and low oil prices have caused 150,000 people to become unemployed according to official numbers of new EI (employment insurance) applications. Those numbers do not count the somewhere between 20,000 and 100,000 people who were contract employees and are not eligible for EI. Also about another 80,000 people are reduced hours and or work sharing. In a province with a population of 3.5 million of which half are working age it is significant that over 250,000 good paying jobs have been lost.

    • PrepperDoc says:

      What have been the practical outcomes as a result?
      Has rent gotten cheaper, prices gone down as fewer are able to purchase? Cars any cheaper?
      Crime any worse?

      • Yeah. The media here doesn’t tell us about Canada’s woes. I for one would really like to hear about the details.

        • Exile1981 says:

          In Alberta the provincial government has decided to shut down 1500MW of coal power plants in 2017 which will reduce our excess capacity to near zero. They plan to replace them with 1500MW of wind turbines but since those are both rated capacities not actual capacities; they actually need 65400MW of wind to replace the coal plants.

          We currently have about 1400MW of wind turbines which took 20 years to build and install so it’s unlikely they could double it in a year anyways. They also cancelled the permits for the construction of 1200MW of new natural gas power plants.

          I predict an energy shortage in the next couple years in a province that has been a net exporter for decades.

      • Exile1981 says:

        Suicide levels have gone way up. Crime rates of things like B&E and theft are going up.

        Used vehicles have come way down but not new vehicles. If you want a boat or a holiday trailer you can get them for pennies on the dollar right now if you have cash. A person I know picked up a 3 year old 30 foot 5th wheel trailer with the upgraded interior for $3500 cash as the seller was desperate.

        In my area most of the small independent restaurants have closed from lack of business.

        The new Bill 6 is crushing the prosperity of family farms but helping the big multinational farms.

        Honestly rents have not gone down as most of the rental property is owned by smaller investors who owe more on the rental property than it’s worth and so they can’t reduce the rent as then they couldn’t make the mortgage payment on it.

        The government has increased the number of TFW permits (temporary foreign worker) again. That means people who go to fast food places for jobs are competing against TFW’s who can be paid less than minimum wage.

        The real nasty period will start this June and July; the first big batch of oilfield layoffs will run out their 50 weeks of EI over the summer. 2/3 of the people I know have been laid off or are on reduced hours.

  6. Thomas The Tinker says:

    My Fellow ‘Packers’… Today is ‘PayDay’… EBT refill day… Zoo Day at the supermarket meat counter and soda/sports drink isle… ‘Bias alert’. What is happening as we breath this moment.. at every market, carry out, dollar store and bodega in America…. is only a symptom… scab on the wound…

    I wonder … Empty the NSE and bus them to the Bronx or worse and let them bag or restock at a bodega. Would the insight change anything….

    I’m convinced that only a financial / social ‘ReSet’ can do this.

  7. Chuck Findlay says:

    Get out of debt (This is one of the most important survival things you can do.) and stay that way for the rest of your life.

    Start paying cash for all the things you buy (No more debt based buying.)

    Live below your means (spend less $$.$$ then you make.)

    And prep and buy tangibles like your life depended on it, because it does.

    Buy lots and lots of food and learn to produce all of it you can.

    Buy PM’s (With cash locally so the Gov does not know you have it.) They (with the help of computers and cashless transactions) track everything and I see no good end to this.

    Learn from the Cyprus and Greek bank problems of the last few years. Your money in the bank is not your money, it’s their money and they WILL take it at some point. Only keep enough money in the system to pay bills.

    Don’t expect your retirement to actually be there for you to use or to hold value if it does hit the fan.

    Learn all you can as far as skills (Buy all the tools and supplies to support the learned skills.)

    Do things yourself instead of looking for others to pay to do them. Yon can’t do everything, but we can learn to do a lot more then most of us do right now. It very well may be impossible to have the ability to pay others to do the things you pay them to do right now. You will have to do without or learn to do it yourself. Now is better to learn then later to solve this problem.

    Try to live in a location that will avoid the masses when it hits the fan.

    Have firearms and ammo to protect yourself and family. Learn to use them.

    I do most of this, I’m working on moving out away from the city a bit and I need to produce more of my own food. But other then these 2 things I do all the others.

    Doing all this I don’t worry when it all falls apart as I’m doing all I can. And I can’t control when it all goes to heck so no sense worrying about things I have no control over. But I just focus on what I can control, I don’t see any other thing to do?

    We have been taught through school, the media and it’s non-stop consumerism marketing to us and by government example that the above things are too hard to do and live in today’s world, but it can be done with the right mindset.

    None of this is rocket science, it is what use to be called
    “Common Sense”, but it’s clear that it’s far from common today…

    • Really good points, I am relatively new to prepping although I have historically been prepared for big weather events (i.e. Sandy where I had generators and gas just in case). After loss of power for a week, I saved to have a standby generator installed. I now realize that I need to really approach this as a lifestyle and have begun stocking up on the basics – water, food, core supplies and skills. While simultaneously thinking about protection and location, I am in the NE and the firearm application process will take a fairly long time.

      I really appreciate this website and the comments because they are all so insightful. I came upon this article about the American dream which I think also highlights the challenges coming up: http://theconversation.com/is-the-american-dream-dead-57095

      • MsBlindSpot says:

        EM…living prepping as a lifestyle is the key. Being self-reliant is part of that key. You hit the nail on the head. It’s simple, really, but many don’t get it. Prepping is a “hobby” or popular thing to do to for many. Not for me. I lived ‘off-grid’ for many years in a wilderness area…by choice. So, I know the difference. I think a person has to have a connection to what life really is to get it. And many don’t. Good on you for your approach.

  8. gthomas says:

    Dent has said that gold (AU element) will depress to 600.00 or 700.00 per oh zee. If you believe his proselytizing then one should wait on the pm purchases. I think he’s another failed demigod for those whom need reinforcememt of their survivslist mentality. Jmo.

  9. gthomas says:

    If I had a blog that said the economy..no way, no how is going to collapse since pre-y2k I would get little attention but I would be right notwithstanding the scare of 2009. Here I am still preparing because it’s smart but other forces are in control until they aren’t smart. Predictions are senseless but we all need a sense of belonging. Not meaning to be critical or demeaning but other forces are in control. I admit it is beyond my pay grade. Why all the insults tossed at the stupidity of the “head in the sand” folks? They are still fine and abusing your tax remittance. Seems they could think, and they do think, we are the ignorant ones. Maintain perspective.

  10. BODEGA: an enclave of people of Spanish descent all living in close proximity to each other in the environs of a big city.

  11. Crazy Joe in South Jersey says:

    ………. MICHAEL SNYDER …. I enjoyed your article . I am familiar with the views of Jim Rickards . Are you old enough to know who LOU RUYKESER was ? ? If so , did you follow his show ? ?

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