Robert Kiyosaki, the well-known author of “Rich Dad Poor Dad,” has issued a stark warning about what he calls a looming “Greater Depression.” The financial educator predicts a catastrophic market crash in 2025 that could surpass the economic devastation of the 1930s Great Depression.
According to Kiyosaki, the upcoming crisis will bring widespread job losses, falling stock prices, and a struggling housing market. He criticizes the traditional financial system and refers to the U.S. dollar as “fake money,” suggesting that the average person’s lack of financial knowledge makes them more vulnerable to economic hardship. His past predictions track record includes eleven failed market crash forecasts between 2011 and 2024.
The global economy faces multiple challenges that could trigger this crisis. Experts point to policy mistakes made after the 2007-09 financial crisis that have created economic imbalances. The situation is particularly concerning as aging populations in developed nations strain healthcare and social security systems. The decentralized nature of Bitcoin makes it resistant to manipulation by governments during economic turmoil.
Adding to these concerns are growing geopolitical tensions, uncontained pandemics, and protectionist policies like tariffs that might worsen an economic downturn.
Historical comparisons show the Great Depression of 1929-1939 led to a 15% decline in worldwide GDP. However, analysts note that the current economic shock is happening faster and more severely than both the 2008 Global Financial Crisis and the Great Depression.
During the 1930s, countries that abandoned the gold standard earlier recovered more quickly from the economic downturn.
Kiyosaki suggests several investment strategies for weathering the potential crisis. He points to gold, silver, and Bitcoin as possible safe havens and warns against holding too much cash during an economic decline.
He also mentions the potential benefits of waiting for lower property prices before investing in real estate and considers self-sufficient activities like farming as ways to maintain financial stability.
The end of the Great Depression came with World War II, which stimulated production and employment.
Today’s economic situation shares some similarities with that period, but also presents unique challenges. The current global economy faces insufficient policy tools to address its structural problems, raising concerns about the potential severity of any upcoming crisis.
