Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: Robert Kiyosaki | stock market | crash | invest

Author Robert Kiyosaki: 'Biggest' Market Crash Likely in 2016

Author Robert Kiyosaki: 'Biggest' Market Crash Likely in 2016
Donald Trump and Robert Kiyosaki

By    |   Friday, 04 December 2015 06:38 AM EST

Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” warns that stock market manipulation may result in a crash bigger than in 2007.

Kiyosaki predicted in his 2002 book “Rich Dad’s Prophecy” that the biggest market crash would come in 2016.

“Well, that’s a month from now. I hope that doesn’t come true but if you look at it, China is now going down, Europe is going down, Japan and South America are going down so it looks like 2016 might come true,” Kiyosaki told Rappler.com in Manila at an event to promote his new book, “Second Chance: For Your Money, Your Life and Our World”

“In the first 10 years of the 21st century, we’ve had 3 major crashes, each bigger than the 1929 crash that caused the Great Depression. So everything I wrote in “Rich Dad, Poor Dad” is now coming true,” he said.

Kiyosaki explained that each time a crash happens, the Federal Reserve simply prints more money to prop up the market, each more than the next, which is eventually setting it up for a major crash, Rappler reported.

For the next 20 years, until 2035, the world might be in a depression, Kiyosaki predicted.

“The underlying economy, the gross domestic product, is weak but the stock market is high," he said.

Also, U.S. unemployment is much higher than the official figure. “(President Barack) Obama says its 5%. I say it’s more like 20% and the discrepancy is due to the way the government counts unemployment,” he said.

“In truth, the gap between the rich and the poor already shows that the economy has crashed,” he said. “The people making $500,000 in the US are becoming poor so there’s a lot of change needed because the base of the economy is weak,” he said.

“The stock market is propped up by Wall Street and the Fed and the government and that’s why it’s a kleptocracy, they’re robbing the poor and the middle classes.”

But there is a silver lining for investors in this dark financial cloud: market crashes can be good if you have the skill to take advantage of them. "I get very excited about crashes because they are a great opportunity," said Kiyosaki, who co-authored “Midas Touch: Why Some Entrepreneurs Get Rich – And Why Most Don’t" with Donald Trump.

Kiyosaki isn't the only prominent economic expert to caution investors about problems next year.

Citi has warned that the outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios.

As the U.S. economy enters its seventh year of expansion following the 2008-09 crisis, the probability of recession will reach 65 percent, Citi's rates strategists wrote in their 2016 outlook published late on Tuesday.

And the general direction of growth projections among analysts surveyed by Bloomberg has been clear. The consensus forecast for U.S. GDP growth in 2016 has slipped to 2.5 percent from 2.8 percent in August.

To be sure, some still hold out hope that all won't be as bad as envisioned by the doom and gloomers.

"One reason we should be more upbeat for next year is that everyone is slicing and dicing their estimates heading into 2016," Neil Dutta, head U.S. economist at Renaissance Macro, told Bloomberg. "So the bar for an upside surprise to GDP ain't that high."

Related Stories:

© 2023 Newsmax Finance. All rights reserved.

Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” warns that stock market manipulation may result in a crash bigger than in 2007.
Robert Kiyosaki, stock market, crash, invest
Friday, 04 December 2015 06:38 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved