- [Announcer] This is
the Rich Dad Radio Show,
the good news and bad news about money.
Here's Robert Kiyosaki.
- [Robert] Hello, hello, hello.
Robert Kiyosaki, the Rich Dad Radio Show,
the good news and bad news about money
and today we have another
really eye opening
program for you.
As you know, we like to
give you the good news
and the bad news, but
today our special guest
has been on this program before.
She's one of my favorite authors.
One of the things the
Rich Dad Radio Program
does its best to do is open your eyes
to what really goes on
behind the scenes of money.
And what does the news not report?
When you watch bubble
vision like CNBC or Forbes
and all that, what are
they not telling you?
So today, it's a very exciting program
'cause you're going to find out a lot
about what you're not being told
and what's really going
on behind the scenes
and why you should be a little bit worried
about what you're not hearing.
That's really the big thing.
Our special guest has been
on our program before.
She's one of my favorite authors,
like I said before.
Her name is Nomi Prins, N-O-M-I P-R-I-N-S.
She's a renowned journalist,
former international
investment banker, author and speaker,
and she's the author of this
fabulous book, Collusion,
how central bankers rigged the world.
And for those of you have
been sleepin' under a rock,
a central bank is like the
fed, the Federal Reserve Bank,
or the Bank of Japan or
the PBOC, the Peoples
Bank of China.
And what most people don't
realize is approximately
50 to 55 central banks
in the world, and they
run the world, but you
never really hear about them
or see them.
You hear these, they're
puppets really, like
Ben Bernanke was the head
of the Federal Reserve,
but he was an academic.
So was Janet Yellen.
They're not really
bankers, they're academics
and they're actually puppets up there.
They're told what to say, what to do
and give the world confidence.
The book, Collusion, it
took me about five days
to read it, but it was
a most eye opening book
at what's been going on since after 2008.
There's a shuffling of
deck chairs on the Titanic,
as they say.
Central banks like the
Bank of Japan is now
doing business with PBL,
the Peoples Bank of China.
You have the European
Central Bank and all the guys
that are running the show
right now are shuffling chairs.
So, she's a very important guest today.
Please pay attention 'cause
you'll see what 99.99%
of the world will never see.
Any comments Kim?
- [Kim] That's exactly right.
She does see, Nomi sees
what others don't see
and you know, you talk
about your book, Fake,
and there's fake news,
well, Nomi is real news
because before becoming
an author she worked
on Wall Street.
She was at Goldman Sachs.
She was at Bear Stearns in London.
She worked as a strategist
at Lehman Brothers
and an analyst at Chase Manhattan Bank.
So, she's the real deal.
And plus, she's very down-to-earth.
We call her a very good
friend of ours as well.
- [Robert] She's for
real, I really love her.
Very attractive, very smart,
but very down to earth.
- [Kim] Very smart, very smart.
So, she's coming from a
different point of view.
She's coming from a Wall
Street point of view as well,
and taking the central
banks and the fed in
to show us what really is going on today.
It's not what the news is telling us.
- [Robert] And, what Nomi
did, she actually traveled
the world foot, you know
we call it, in the military
call it boots on the ground.
She was, she was on the
ground actually talking
to the people of different countries.
So, one of the first countries she delved
into in her book, Collusion,
how the central banks
rigged the world, she started with Mexico.
Then she goes on to China
and Japan and all this.
One of the most eye opening, disturbing
book I've ever read.
So, welcome to the program, Nomi.
- [Kim] Welcome, Nomi.
- [Nomi] Thank you so much Robert and Kim.
You know, I love being on
your show because, well first
of all, you're both
awesome, awesome people,
but also this idea of like unraveling
the real sort of fake, you know, facade
of what's happening at the source
of money on a global basis.
I think it's really important
because you're right,
people don't know, and
on a day-to-day basis,
you know, they run lives, they don't have
to know every detail,
but it's really important
to know what's going on in the background
because that allows people
to have a better handle
on what they do day-to-day.
I mean, information does
provide us, you know,
individual power in our
own financial lives.
- [Robert] Correct, so let me ask you this
question really quick.
We have guys like Ron Paul,
who's Representative Ron Paul,
he's a congressman, and he's
been a very outspoken critic
of the fed.
You know he wrote a book
called, End the Fed,
and all this, and he
was one of my first guys
that kinda opened my
eyes to what was going
on with the Federal Reserve Bank.
And his book came out in 1972
I believe, his first book,
and it disturbed me when I read it.
And he has not stopped.
And in my opinion, what he
was saying back in the '70s
is more true today.
So what do you think
when a guy like Ron Paul,
which is a sensationalism
because nobody knows
the real story behind
the fed, what do you,
what goes through your
mind given the depth
of what you know, when
a guy like Ron Paul,
a congressman, medical
doctor, and says end the fed?
What is your knee jerk reaction to that?
- [Nomi] Well, you know,
first what's interesting
as a quick synopsis on how
the fed really operates,
you know, when he started
sounding the alarm bells
as to what the fed did back in the '70s,
With all of nothing compared
to sort of the power
that the fed has amassed
since then, and his point was,
and this is very interesting
and connects to today,
is back then we, as a country,
were the gold standard,
meaning that there was
some element of our money,
of dollars that was backed
by a real physical asset,
which was gold.
And that provided a reality
of confidence that has been
superseded since 1971,
since the elimination
of the gold standard
completely by this idea
of what we call fiat money.
Now, what all that means
really, and why it's
such an issue today is
that the Federal Reserve
as a central bank, basically is the banker
for all the other banks that people use,
whether it's Chase or Bank of America,
or even your local community bank,
but the big banks have
more of a tie to the fed,
have the ability to literally create money
out of nothing.
Now, we would all like to do that.
We would all like to
go to our bank accounts
and all of a sudden
see them magically grow
by you know, some slip of
an electronic, you know,
keyboard stroke, but
the reality is the fed
really is able to do this.
So, for example, in the last just 10 years
since the financial crisis,
what the fed has done
is they have electronically
you know, I call
it conjured or fabricated
because its money doesn't come
from profit or revenue or anything real.
It literally comes from their ability
to you know, create it out of nowhere.
Over $4 and a half trillion
worth of money from nowhere,
which they have basically allowed to go
into the private banking system.
So the banks, having
messed up the economy,
having messed up the
financial system themselves,
are effectively given
the benefit of having
more money thrown at
them in return for them
being able to do what they
want with no strings attached.
- [Robert] Right.
But Nomi, wouldn't you
say the fed was created
as a backup for the big
banks in case big banks
screw it up, the fed would bail them out?
Wasn't that probably intentional?
- [Nomi] Yeah, and it
absolutely, that's very true.
One of the ways that the
fed came into being was
because about 100 years before
our last financial crisis,
in 1907, there was a huge,
what they call panic,
on Wall Street.
All the banks were losing
confidence in each other.
People were like storming their doors.
There were cops in the streets
trying to beat them back.
I mean, it was mass chaos.
And a man named J. P.
Morgan, whose name is now
on the largest bank in the United States,
J. P. Morgan, Chase, was given the ability
by, at the time, the
U.S. Treasury Department
under President Theodore
Roosevelt, to use $25 million,
drop in the bucket in today's
money, but to basically
give to whoever he
wanted to on Wall Street
to fix the problem.
And he did that.
That was the first official
bailout in U.S. history,
went to J. P. Morgan to
do what he wanted with.
But, what he bought after
that, you know, it's great
you got money from the
fed to basically help
your friends in a panic
financial situation,
but he was afraid that
there would come a time
where the U.S. government
or the Treasury Department
would not be able to foot the bill
for a financial emergency.
So he, amongst other bankers at the time,
major bankers of which he was the lead,
started to push through the senate,
push through themselves and figure out
a way to have the central bank,
this sort of mother ship of banks,
whereby private banks,
when they had an emergency,
could go and literally get money.
I mean, it's basically
like an unlimited ATM.
So, the law, yes.
- [Robert] So that's the
fed, the federal reserve.
- [Nomi] That's the fed.
That's how it came about.
Ultimately, it came about in 1913 through
the Federal Reserve Act of 1913,
but those six years in between the panic
and when the fed was created,
at that point J. P. Morgan
died and his son, Jack Morgan,
was running his, the firm.
But, the reality was these bankers worked
with a couple of people
in Washington, so it was
very much a collusion
between the central bank
and the people of government
who ran the finance committee.
So, the people who were
supposed to protect finances
for the public, for
the rest of the country
worked together to
create the central bank.
They sold it to the public
when the vote was cast
for the Act to create the
bank as a means to give money
to like poor farmers in the Midwest.
You know, if there was a
crisis that Wall Street
didn't wanna give money
to small businesses,
the fed would effectively
make sure there was
enough money to run into those businesses.
That's how it was sold.
The reality is is that
since it was created
and through today, the
fed, despite what its
stated mission is, which is
to keep the financial system
kinda stable, to keep unemployment
at a certain good level
and so forth, actually still
has the unlimited ability
to create money out of
nowhere and to effectively
give it to the largest
banks in the country.
- [Robert] Correct.
- [Nomi] I call it a subsidy.
- [Robert] Correct, and this is the power,
you have two books.
One's called, All the Presidents' Bankers,
which came out in 2015, which
actually I've started now.
And I went through Collusion,
how central bankers
rigged the world, May
of 2018, so I'm reading
kind of backwards, but what
I understood from Collusion
was that everything
changed again after 2008,
when the other central
banks realized the fed
had changed the rules
again by just printing
so much money to bail out
their friends and family,
making the rich richer.
But they also kinda screwed
the other central banks.
Is that kinda the theme of Collusion?
- [Nomi] Well, what they
did, that's exactly right.
They picked favorites,
very much like J. P. Morgan
picked his banking favorites back before
the fed was created.
I'll give you guys money.
I won't give you guys money.
I'll collude with you.
I'll require you to do something else.
So, what wound up
happening was, in the wake
of the financial crisis,
what central banks
had played ball with
the fed, and still are,
like the European Central
Bank, like the Bank of Japan,
who did the same things that the fed did,
which was to create
trillions, literally trillions
of dollars out of nowhere and
given it to the largest banks
and private corporations
in their countries
and into their stocks
and so forth, depending
on the country, that's what Japan does.
U. S. has other kinds of
forms and the European
Central Bank, they give money
to corporations and banks
throughout Europe.
Those major banks still
operate under what the fed
requires them to do in the
wake of the financial crisis
of 2008, which was to keep
rates at zero or negative,
or low, the fed raised
rates you know recently,
but they're still very
low, which is why people
don't get a lot of interest
on their savings account.
It all ties back ultimately
to the regular person.
But, other countries were
really at a detriment
because in the emerging market countries,
for example, like in
Mexico and like in Brazil.
You know, they're big economies,
so they should have been
able to sort of fend
for themselves, but what happened was
when the fed required
all of these other large
central banks around the world
to do what they were doing,
in terms of creating money, it was harder
for these other central
banks to create as much.
They didn't have the deep nbatch.
They didn't have the
confidence in their countries
'cause they were emerging
market countries.
As a result, they were at a disadvantage
for artificially creating
money out of nowhere
to go into their system,
so they fell behind
the sort of more mega
central bank countries.
- [Robert] So, a lot of
them are in trouble though,
like Argentina's in
serious trouble right now.
But this is my point.
The reason I want people
to read Collusion,
'cause it took me a while
to get through it, but you
actually after 2008, you
were feet on the ground.
You went to each of
these different countries
to find out for yourself
rather than listen
to what Wall Street was saying
or some banker was saying.
And, you started with, you
started with Mexico I believe.
Then you went to China,
Japan and all that,
and Russia and Europe.
So, that's why people, if
you really wanna find out
what's going on with this
thing called the central
bank system, or the collusion,
is at that's her book,
by Nomi Prins.
So let's quickly start,
you know, everybody's
talking about China right now.
From your point of view, what's happening
with the PB, the Peoples Bank, PBOC,
what's happening there?
- [Nomi] Yes, and the interesting thing is
that at Peoples Bank of
China actually retaliated
at first against what the fed was doing
and it was very public saying
you know, what the fed's doing
is insanity, it's artificially
manipulating markets
by creating money out of nowhere.
That can't end well.
It'll create bubbles and so forth.
And it has.
And as a result, the People Bank of China,
and China itself as a
country, started to grow
actually as an economic super power
simply by saying, look, we have to be
a little critical of the U.S. and the fed
because look what they did
to the financial system.
Look what they did to the world.
And they started developing
an independent policy
from the federal reserve.
They weren't sort of
involved in the phone calls
and everything that I talk
about in my book, in Collusion.
They were sort of separate.
And what they did though,
they also created money,
but they did it for a different purpose.
They did it to go into
like the building of China
and into the building of
countries around China
like Thailand, like
Sri Lanka and so forth,
with which they had trade relationships.
So they could actually
build infrastructure.
They built train infrastructure,
they built roads,
highways, you know very very
high speed networks of trains
and so forth, in order to put
real assets on the ground.
So, they created money,
but they had a strategy.
Whereas with the fed,
there was no such strategy.
It was just like, we'll
give it to the banks
and we hope that somehow you
know, it sprinkles itself
into real economy, which it hasn't done.
Today, China's growth is
slowing a bit, but it's still
three times, three and
a half times the growth
of the United States economically.
So, they had much more of a strategy.
- [Robert] So, they
invested their money wisely.
They invested their money
to grow the economy.
- [Nomi] That's right.
So, there's nothing
ultimately, when you think
about creating money or even borrowing,
even going into debt to build something,
as long as you have
something on the other side
that will pay off in some way, that's
a positive strategy and
you know, you can do
the tradeoff on that.
People do it every day as
well, in their own pocketbooks
and their own checkbooks.
But, the fed did not do that.
The fed, going back to
something you said before,
Robert, you know, they were
used to like create confidence,
kind of like to be mouth
pieces to this idea
that somehow the economy was better
because of the money that they created.
The reality is, the U.S. economic growth,
the gross domestic product,
the GDP, we have heard
that term of the United
States, has not grown
by more than 2% on
average in the last decade
that the fed has been throwing money
into the banking system.
That tells you something,
because the stock market's
gone up tremendously.
The economy has not,
despite what they say.
And that's the other reason why you have
to kind of ignore what they say and look
at the real data.
- [Robert] We talked about China, Mexico.
I want to talk to you
about Europe and how these
central banks after 2008, what happened,
they all re-aligned.
When we come back we want
to get more personal.
How did this effect policy
play into income and equality
and how serious a problem is it?
- [Announcer] You're listening
to the Rich Dad Radio Show,
with Robert Kiyosaki.
- [Robert] What is your
number one expense in life,
your number one expense?
It's taxes and I want to ask the question,
how come there's no financial
education in school,
but why isn't there
education on taxes either?
You know, they tell you to save money,
which is stupid.
They tell you to invest
in the stock market,
which is stupid.
But, what do they teach you about taxes?
See, here at Rich Dad
Advisors, Tom Wheelwright,
we're talkin' about his
revision for his book,
Tax Free Wealth.
Welcome Tom.
- [Tom] Thanks, Robert.
- [Robert] So, what's the
tax free wealth about?
What's different this
time, revised edition?
- [Tom] Well so, what we
did was this is the first
major tax reform we've
had in 30 years, 2017.
- [Robert] '86 was the last one.
- [Tom] '86 was the last
one, back when I was
in Washington DC.
- [Robert] So many guys got wiped out
because of that tax law.
- [Tom] They did, they did.
It wiped out an entire
industry, savings and loans.
This new tax law is just as big,
but in a very different way.
It effects different industries.
You know, the tax law's
always a series of incentives
and the question is
always which incentives
and which ones apply to me.
And so, the key to revising
Tax Free Wealth was,
what is that?
What changed so much in this new tax law
that we can absolutely take
advantage of and, I mean
seriously, amazing incentives.
For example, I mean the bonus depreciation
for example, for real
estate is unbelievable.
You buy a million dollar apartment and get
a $300,000 deduction or
more the very first year.
- [Robert] So, if you
want to make more money
and pay less taxes like
Donald Trump and myself,
get Tom's book, Tax Free Wealth.
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- [Announcer] It pays to listen.
Now, back to Robert Kiyosaki
and the Rich Dad Radio Show.
- [Robert] Welcome back.
Robert Kiyosaki Rich Dad
Radio Show, the good news
and the bad news about money.
You can listen to the Rich
Dad Radio Show anytime
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We don't give financial
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And, if you listen to this program again
you'll learn probably 70% more than you
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Another very important part
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If you listen to this
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- [Kim] And our very special guest today
is Nomi Prins and she is
a renowned journalist,
former international investment banker.
She worked on Wall
Street at Goldman Sachs,
at Bear Stearns in London.
She worked at Lehman Brothers
and Chase Manhattan bank,
so she is the real deal.
She's the author of the book, Collusion,
how central bankers rigged the world,
one of Robert's favorite all-time books
and happy to have you here.
Thank you, Nomi, for being
part of our program today
and really opening up the
eyes for Robert and me
and for our listeners, as
to what's really going on.
- [Robert] So, can I ask
one quick, quick question,
because we have this side
show going on called Davos.
And that's where the rich,
powerful and the bankers
of the world all get
together for a few days,
President Trump boycotted
it, or didn't attend it,
but that's where the rich come to mingle
with the powerful.
And, we're going to get into
how rich are the rich today.
I'll give you an example
how rich the rich are today.
When I was a kid most of
my classmates had never
been on an airplane.
That's how old I am.
Today the rich own their own airplanes.
But you're really rich today
if you own your own rocket.
And so today guys, you
know like from guys who
are buying from Tesla must, they're buying
their own rockets today.
I mean, they don't need
the federal government
to put rockets and satellites in space.
So, if you have a private
plane, you're rich,
but when you own a rocket
you're really, really rich.
So Nomi, what's really
going on with Davos?
Anybody arrive by rocket ship?
- [Kim] And what is Davos?
- [Nomi] First of all, Davos is
a ski resort town in Switzerland.
It is where about 3000 people
representing 1700 corporations
and a whole bunch of countries
with a few sort of do gooders,
like from Oxfam show up, and they
basically mingle amongst themselves
at like, very expensive,
ornate sort of dinner halls
and bars and parties and so forth.
But ostensibly it was created
as part of an organization
called the World Economic Forum, in 1971.
Ironically, when the world went
off of the all gold standard
to embrace the U.S. dollar,
but effectively its mission
statement according to it is to convene
these people together to
improve the state of the world.
That's what they say, "improve
the state of the world".
Now, what they actually do
is talk about how to improve
their own sort of influence and networking
and everything else.
The cost to participate in
Davos ranges from 60,000
to about 600,000 Swiss
franks, which is sort
of equivalent in dollars.
The only people who can afford that
are actually corporations.
Governments send dignitaries,
they send you know,
presidents and so forth
and whole entourages
of delegations to this event,
for which taxpayers pay.
So, most of the elite that
show up are either being
you know, sent there on
the dime of the companies
that are effectively public companies.
I mean, they're private
companies, but they trade
publicly on the stock
market, and governments
who effectively use taxpayer
money to enable them
to you know, pay these
prices to spend a week,
it's five days actually, but
most people spend a week,
to talk about the state of
the world and supposedly
to talk about how to improve it.
- [Robert] And so,
Nomi, what would you say
that there's a main conference,
but the real conference
takes place in the bars,
restaurants and private parties
and not everybody's invited to those bars,
restaurants and private parties?
- [Nomi] Well absolutely.
I mean, there are whole
chalets that are you know,
rented year after year
where there are you know,
more select parties
that go on after hours.
That's where the real
big wigs and dignitaries
come together and it's a
place where the president
of Brazil can get together with the CEO
of J. P. Morgan Chase and effectively talk
about how to expand J. P.
Morgan Chase in Brazil,
not how to improve the world.
You know, that's not the
conversation that's happening
over expensive champagne
and wine and so forth.
So, that's where all
the sort of networking
that really creates major financial system
and political influence really happens.
What happens at the
seminars, at the hour sort
of talks that go on throughout
the official five days,
is that you know, these people are looking
for media coverage.
Last year for example, the
president of France, Macron,
had this like hour long,
which for them is very long,
speech after which he was
given a standing ovation.
Talked about how great
France was, how he was
going to run it, everything
was going to be great,
everybody was going to be happy.
Well, fast forward a year
later, he's not even attending
because he's busy dealing
with the political crisis
in France because people are
demonstrating in the streets
against his policies.
So, it's really ludicrous
when you think of that.
So there's an irony
attached to the official
message of helping the world, with respect
to the actual influence
gathering that these people have
by being in the same
place at the same time.
So, what really happens in the real world
relative to real citizens
when they're not there?
- [Kim] It's the perfect
example of what you talk
about and what the people
are seeing and what's
really going on because
I remember watching
some of those interviews
from the last Davos
and it was all about
doing good for the world
and we're going to improve this and we're
going to improve that,
but you're saying no.
It's really to improve their own pockets.
- [Nomi] Well yeah.
I mean, who really believes
that Jamie Dimon, who,
I mean yeah, most people
shouldn't, you know,
chairman and CEO of
Chase, is really thinking
for the five days he's there,
wow, how, how am I going to
make the world a better place?
(laughing)
I mean, that's just now going on.
You know, he's like well, how can I again,
how can I open up more
Chases in Brazil or wherever?
So yeah, it's kind of ironic that it still
even receives this kind of media attention
when that's kind of you
know, the official purpose,
but the actual happening
has nothing to do with that.
J. P. Morgan Chase is, yes.
- [Robert] And Jamie Dimon who's
head of J. P. Morgan Chase,
is a billionaire banker
and record says that's
kind of disgusting.
You know, how could a
banker become a billionaire?
But anyway, we know there're ways.
You know, our program is
for average people like you,
me and our listeners.
What should they know from what you know
that most people do not know
about the central banking system?
Like, what I found out
after doing more research is
organizations like the
Rothchilds actually control
many of these central banks.
So, it's exactly as my
teacher, Buckminster Fuller,
said, the rich control the monetary supply
of the world.
And you said that in All
the Presidents Bankers.
Nothing really changes because the bankers
never really change.
So, what should the average
person know that you know?
- [Nomi] Yeah, I mean, that's the thing.
The influence of these
central banks goes beyond
their official public you
know, sort of mission,
which for example, with
the federal reserve
is to make sure that
unemployment stays low
and inflation stays low.
That's what they officially say.
The reality is, they're members.
They have members like J. P. Morgan Chase,
which is connected to the Morgan family
and going back in the day, who really owns
the shares of the fed?
It's the major banks who share their own
buying off in pieces, you
know, families that have been
in power for decades,
if not the better part
of you know, centuries,
centuries and a half.
So that's all the power that comes to bear
on having these institutions
that are created
to look like they're
helping the average person.
But, if you take a look for
example, what the fed has done
or what the central, the
Bank of England has done
or the European Central Bank.
What they've done is
they've distorted markets,
you know, in favor of
these private institutions
and the wealthy because that's
what's getting the money.
If you look at an individual
for example, and this is
just something in
day-to-day life listeners
can be aware of, the
result of money being made
so cheap for the banks,
who screwed up the system
by the federal reserve and
is being given so much money,
is that for example, real
people aren't getting interest
on their savings accounts.
So even though, going
back to J. P. Morgan Chase
and Jamie Dimon, who
yeah, became a billionaire
'cause the fed gave them all this money
when they were in you
know, problem scenario,
back that they caused back in 2008.
People who bank with Chase get less than
a quarter of a percent
interest, which is basically,
you know, the better part of zero almost,
on their savings account.
Now that number used to be something
between 4% and 5% on average.
That's a tremendous difference
when you look at someone
who wants to get a little
ahead with saving money
and using it for later
and growing that money
in you know, it's one place to grow it,
there's many places, but
in their savings account
where they can't do that anymore.
Now, in contrast, other
institutions online for example,
like American Express or
different types of institutions,
are giving about 2% interest.
So, they're giving almost
10 times the interest
on people's savings that
J. P. Morgan is giving
and J. P. Morgan Chase
was given the money.
So, that's where it
starts to hit real people.
They're effectively taking cheap money
from the fed and not giving
it to their customers
and it's their customers
whose deposits are sitting
there at the banks giving
them the opportunity
to buy their own stock
and to be more speculative
in the businesses they run.
And potentially therefore,
putting the world
at risk again, the same
way they did 10 years ago.
- [Robert] So you know,
for years I got into a lot
of trouble by saying savers are losers,
simply because you save, but
the fed or the government
prints money, which goes
up faster than your ability
to save, even if the
interest rates are high,
and they just keep saving
money and now they're all
in the stock market because as you say,
they can't get anything
from savings, so they
become speculators in the stock market
and we've seen what the
stock market is doing.
My opinion is this, is that
the economy, government
and the stock market
and real estate are all
floating on mountains of debt.
Would agree or disagree with that?
- [Nomi] Well, it is because first of all,
debt levels in the United States, actually
throughout the world,
are at historic highs.
The New York Federal Reserve,
which is one of the 12
sort of regional components of the main,
sort of mother ship federal
reserve, had a report out
they do every quarter,
their last one had a number
of, the number at which
households are in debt,
different kinds of debt.
So, credit card debt,
mortgage debt, auto debt,
put it all together of
$13 and a half trillion.
So, that's getting close
to what the entire GDP
or production of the United States is.
But then, the treasury
debt, in other words,
the debt that the government owes,
is closer to $20 trillion.
So, you add what the government owes
to what people owe, you
throw what corporations owe
and effectively, there's
$3 of debt behind every $1
of actual growth or profit
or revenue or anything real.
That's why the world really is, you know,
and it's similar if not worse, throughout
different countries throughout the world
and it's gotten worse
since the federal reserve
made money so cheap
because that made people
and governments and
corporations think okay,
well, we can borrow more cheaply.
And there's nothing
necessarily wrong with that.
I mean, it's smarter
to borrow more cheaply
than to borrow more expensively.
I mean, that is smart,
but the problem comes in
when it's just too much
and there's not as much
a thought for what the
assets or the growth
or the real stuff at the end of that debt
is gonna pay out over time.
So, that's the situation we have now.
- [Kim] Got it.
So Nomi, we're watching
an interview by Ray Dalio,
and he's saying with all
the debt and everything
and what the government
owes, he goes, there seems
to be a real issue in taxing the rich
as much as 70%.
He says that's a real issue.
What do you think about that?
- [Nomi] Well, we look at where the growth
has really happened in the U. S.
It's not just grown the U. S.
It's grown people and people
are more becoming wealthy
together and it was collective
and things are being,
you know, like highways are being created.
What they call the marginal
tax rate, was pretty high.
I mean, it was ridiculously
high in some ways.
It was like 90%, back in
like the Eisenhower times,
in the '50s and so forth.
That didn't mean their tax on everything
the wealthy were making,
that simply was something
called the marginal tax,
meaning above a certain amount,
there was extra tax
requirements coming in.
And the idea of that was
to you know, help to build
the country and it did work.
You know, we talk about a
70% tax rate or so forth.
First of all yeah, that's a high number,
but also it is, it's a marginal tax rate.
So, it's like most people don't make
more than $10 million, the idea is
to connect it to $10 million.
Most people don't
actually make $10 million.
- [Robert] And if you
make $10 million a year,
you can figure out, you
can hire a smart enough
accountant and attorneys not to pay it.
Final question I've got.
The reason I love your book,
Collusion, and I'm going
through your earlier book,
All the Presidents Bankers,
is how they're all rigged
together for decades,
but we talked about
the U. S. a little bit.
You start with Mexico, went into China,
but what is the story on Europe?
You know, 'cause I hear
about Brexit, I hear
about Brussels and I hear about Germany,
but one of the bigger
countries I hear about that's
in trouble is Italy because of their debt.
What do you know about the ECB,
the European Central Banks?
What do you know about that?
- [Nomi] So, here's this all
again links to what happened
in the wake of 2008.
The European Central
Bank, which is basically
like the fed for Europe,
also started to create
money out of nowhere and they started
to pick and choose 10
years ago with that money,
multiple trillions of
dollars, who would get it,
what countries, what
debt from what countries,
their governments and their
companies and their banks.
In the case of some
countries they got more money
from the central bank, from
the European Central Bank,
like Germany, like France, and as a result
they did sort of a little
better economically
than some of like, the poorer countries,
the ones that were like peripheral
to the core western Europe,
like Italy, like Spain,
like Portugal, like Greece.
We heard a lot about the Greek crisis
back a number of years ago.
The European Central Bank,
rather than helping Greece,
decided to take future
revenues from Greece
and to take Greek assets
which made it harder for them.
With Italy, a similar
situation is arising,
but it's with the Italian banking system,
which is that in the beginning
of this 10 year period
and throughout it, Italian
banks have been lending
out money in really a not
particularly intelligent way
throughout the country.
Like, not with a lot of
collateral, over lending,
not checking on whether
loans would be repaid
and so forth, and this was done throughout
a number of the Italian banks.
So what's happening now
is, people or companies
that borrowed from
Italian banks are starting
to not be able to repay them.
So the banks are saying, wait a minute.
We lent out all this
money and now we're not
gonna get it back, so now we need to have
the government back us.
But the government also
borrowed a lot of money
and they have to repay that,
so it's just this cycle
of debt that's been happening,
so European Central Bank,
though they've been printing
money, have neglected
to you know, operate
on an intelligent basis
with this money, if they're
going to do it anyway,
with some of these countries
and what Italy did is,
it just simply has over extended itself
in terms of its debt and now its banks
are in a real crisis.
And throughout Europe what we see, I mean,
this is in Spain, it's in Portugal.
With Brexit it's kind of a
different kind of crisis,
which is that people just
don't have confidence
in their government's ability
to put their needs first,
to like do their jobs as
publicly elected officials.
So, throughout Europe we're
seeing economic slowdowns,
overabundance of debt
that has been the result
of the policies that the
European Central Bank
has enacted over the last
10 years, which is similar
to that of the fed, and people just voting
out governments left and right.
You know, this major
election's coming up in Europe
in the EU in May and so
forth, voting for Brexit
to get out of the EU.
So people across the board
are just so dissatisfied.
You know, it's like the
difference between their
economic reality and what
government officials are doing
or not doing on their
behalf, economic dysfunction
or slow growth is also becoming you know,
a political crisis.
And that's Europe right now.
It's going to be like that
for the foreseeable future
because people don't like
it when they're not secure
in their jobs, they're not secure in their
own personal finances
and government officials
are making them promises
and then not being able
to you know, go through with them.
- [Robert] And so, let
me ask my final question
to you because we covered
Mexico, China, Japan
and go to Europe, and everybody
says the United States
is strong, unemployment near zero
and everything's rosy here.
How strong, the other thing people say,
we don't live in a vacuum.
If China suffers, Mexico
suffers, Canada suffers
or Europe suffers, South America suffers,
how long can the United States just keep,
how solid are we?
- [Nomi] Yeah, I mean, we're not.
And first of all, we haven't really,
since the financial
crisis, become as solid
as unemployment figures or the level
of the stock market you
know, would indicate
if they were isolated data points.
The reality is, we have
not grown by more than 2%
in any year since the financial crisis,
and on average it's been closer to 1%.
If you look at it altogether
it's not a lot of growth.
You take inflation out of
that, we effectively negative.
So, we haven't really
moved forward anyway.
We've just moved better
than some other countries.
Not China, but other countries.
If a major economic and
growing population power
like China has a weakening
economy, it does impact
the United States.
It does impact its region.
It does impact Europe.
It does impact Latin America.
It impacts everyone
that China trades with.
Any of the large economies that engage,
because we have a world that's connected
in trade or in businesses
with other countries,
which they all do, when one
of them falls or falters
it impacts everything else.
So the U. S., if we just
literally functioned on our own,
which we don't, I mean, first
of all, we owe $20 trillion
in debt to the world, but even if we did
function on our own that
would be problematic.
But, we don't.
We function in a world
where trade and businesses
and finance and intelligence
are regularly traded
back and forth and if
there's a major suffering
in one area of the world
it does not stay isolated.
So, I think that you
know, when China again,
they're still growing well
compared to the U. S.,
but you know, their
weakness becomes a regional
weakness and that becomes
a global weakness.
You know, even something
like you know, you mentioned
before, Argentina, you
know, countries that are
depended upon by their
regions, if they go weak,
their regions become
weak and then the world,
in general, has this sort of cycling down
of economic growth.
And we're seeing that.
That doesn't not effect the U. S.
We are, whatever our trade agreements are
and whatever the you know,
trade wars or any type
of uncertainty surrounding
them are, the reality is
we have to be partnered with the world.
And if the world or pieces
of it are suffering,
we will have that suffering
come into our country.
- [Robert] So, Nomi,
thank you very very much.
I mean, please everybody,
go get her book, Collusion,
how central bank has rigged the world,
and All the Presidents Bankers.
The website is NomiPrins.com.
Final words.
- [Kim] Thank you Nomi,
really appreciated you
and I love your initiative
you're taking on, too,
in educating women about the central banks
and the economy and money.
So, I wish you the best.
- [Nomi] Thank you so much.
I'm very excited about that as well.
Thank you for your support on that.
- [Kim] You've got my greatest support.
- [Robert] And so, when we come back
with the most popular part of our program,
Ask Robert, where you get
to ask your questions.
- [Announcer] You're listening
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- [Announcer] Financial freedom begins
with financial education.
Now back to Robert Kiyosaki
and the Rich Dad Radio Show.
- [Robert] Welcome back.
Robert Kiyosaki, the Rich Dad Radio Show,
the good news and bad news about money.
Once again I wanna thank Nomi Prins.
She's the author of the book, Collusion,
how central bankers rigged the world.
And her other book
which I'm just starting,
is All the Presidents
Bankers, came out in 2015.
Collusion came out in 2018.
Trust you'll learn
something from listening
about how the central banks
are colluding to run the world.
So, you can listen to the
Rich Dad Radio Program
any time any where on iTunes or android
and all of our programs are archived
at richdadradio.com.
We archive them so you can
listen to this program again
because repetition is how we learn more.
So, if you listen to
this Nomi Prins interview
one more time, you'll learn so much more
about the central bank
systems and this thing, Davos,
and why nobody really cares
about you anyway (laughing).
So, you got to care about yourself.
- [Kim] There's a lot of truth in that,
lotta truth in that.
- [Robert] My banker doesn't
care as long as you have money.
But anyway, listen to this
program again with friends,
family and especially business
associates and discuss
and you'll find what
you learn will just blow
your mind apart.
You'll pick up so much
more because you listened
to Nomi for about 30 minutes
now, you heard her voice,
inflections and it's better than reading
a book many times.
Any comments, Kim?
- [Kim] I thought what she
talked about with Davos
was pretty eye opening
because it kind of sets
the tone of the world which
is Davos was originally
brought together and she
said it's written down
to improve the state of the
world and how it's become
to improve the state of
individual pockets and companies.
- [Robert] Correct.
- [Kim] Nothing about improving the world.
It's about how much money is in it for me.
- [Robert] There's 600 people there.
- [Kim] 1700 corporations
and countries represented.
- [Robert] And not everybody's invited
to the in parties.
That's just real life.
- [Kim] Yeah, it is.
- [Robert] The in crowd or the outhouse.
I mean, the in crowd or the out crowd.
- [Kim] It's no doubt that people don't
trust the governments and aren't trusting
big corporations and all of that.
It's less and less now because of that.
So, it's eye opening and
it comes down to the basic
thing is that the Rich
Dad Company is created
so that we're not depending
on anybody out there
at politics, anybody to
take care of us financially.
We've got to depend upon ourselves.
- [Robert] If I paid the
$60,000, I might be able
to get a cup of coffee
and listen to a couple
of the seminars, but what
our friend, Jim Richert says,
that's not where the
thing takes place anyway.
Even if you're sitting in the seminar room
the deals are made at private parties
over lunch, dinner and the bars.
That's where the real policy takes place.
So, if you're not in, you're out.
So, I want to thank
Nomi for doing her best
to share with us what the
rest of us do not see.
So, going to the most
popular part of our program
which is Ask Robert, Where you
get to ask us your questions
to AskRobert@richdadradio.com.
So, what is the first question, Melissa?
- [Melissa] Our first question today comes
from Mel in Philadelphia,
favorite book, Rich Dad Poor Dad.
Says, Robert I want to thank
you for changing my life.
You and Kim have taught
me so much about my family
and we are so much happier
because of what we've learned
listening to Rich Dad.
I have made progress
financially and have a younger
individual asking me to be his mentor.
I do not feel that I have
the credentials to mentor.
It's something I'm trying to figure out.
At what point did you and Kim
feel comfortable mentoring?
- [Robert] I think that's
one of the most humble
and profound, intelligent
questions you could ask.
You know, there's so many
people who know little,
but they think they know everything,
probably hang on a number of them.
They know everything.
The most important thing is to be humble.
If you don't know
something, say I don't know.
Say, I'm learning that myself.
Well, just know there's
always three sides to a coin.
You know, there's heads, tails
and the edge of the coin.
And you know, when I talk
about how, people talk
about flipping their house
and I don't flip houses.
You know, but it doesn't
mean you shouldn't.
All we say is understand,
I would recommend
taking a class before you flip a house.
So, those are the things we talk about.
Just be aware that you
don't know everything
and tell this young person,
I don't know everything
and then discuss it with him.
Any comments, Kim?
- [Kim] Yeah, it's a great
way to learn is to teach.
And one of the things that
Robert and I do our best to do is
we don't, we don't give advice.
We do our best to just
speak about the experiences
that we've had and we
come from the experience.
So yeah, we've tried this, this worked,
this didn't work, here's what we did,
here's what we didn't do.
And I think if you just come
from your own experience
that is, that's great
teaching right there.
- [Robert] And, I would
suggest you know, if you
don't have, get a Cash Flow game and teach
and you'll learn more by
physically doing something.
'Cause the mind is very, very weak.
You give me a division,
I can't do the division,
but I can do something physically.
You know what I mean?
It's really tough.
How do you learn a language?
Well, you have to speak it.
You don't just listen to it.
You have to do something.
I would get the Cash
Flow game and teach him.
If you don't have a Cash Flow game,
everybody's got a Monopoly
game and that's how
I learned it, you know, four green houses,
one red hotel, and that's how my Rich Dad
started teaching me as
a kid, is I understood
four green houses and one red hotel
and that's what Kim and I do today.
We have thousands of little green houses
and a couple of red hotels.
Right Kim?
- [Kim] Yeah and you know,
we go back to a thing
called the cone of learning which we use
as a teaching tool.
It was created by a
gentleman named Dell Edgar.
- [Robert] Edgar Dell.
- [Kim] Created by a
gentleman named Edgar Dell
and it talks about how people learn best
and the way you learn best
is by doing the real thing.
So, anytime you go out
there and do the real thing
you're going to get feedback,
you're going to learn
and that's how change happens, too.
That's how growth happens.
- [Robert] And that's why
a lot of school teachers
and you know, they teach kids to be poor
because they tell you
not to make mistakes.
So, one learns by making mistakes.
And that's why Edgar Dell, in 1969,
came out with this thing
called the cone of learning.
You want to do the real
thing, but most importantly
you want to learn from real teachers.
Most, when it comes to
money, most teachers
are fake teachers, they're sales people.
Most school teachers
know nothing about money.
If they knew about money they
wouldn't be school teachers.
I know that sounds harsh, but I'm just
giving you what my reality
in the whole thing is.
So, be careful who your teachers are.
I'm coming out commercial message here.
I'm coming out with my
latest book called, Fake.
Fake money, which is what
Nomi was talking about.
In 1971 the U. S. Dollar became fake
and people are saving that stuff.
It's really silly.
They can print it, why would you save it?
Second is, fake teachers.
And most people don't
know if their teachers
are real or fake.
That includes your stock
broker, your financial planner,
your school teachers.
Some of the worst people
I've met are people
who teach accounting, not
that I'm in accounting,
but I know more about accounting
than the accounting
teachers because I have
to do accounting, but I
don't know any accounting.
And the third category is fake assets.
Most people are poor because
they're buying fake assets.
In Rich Dad Poor Dad, the
definition of an asset
is something that puts
money in your pocket.
Most people are putting
their money on things
that take money from their pocket,
like stocks, bonds,
mutual funds, ETF savings.
They don't put money in your pocket.
Why would you invest in them?
But, to do what Kim and I do and most
of my advisors do you have
to have financial education.
The sad part about it is most people
cannot do what Kim and
I do, but if you have
a financial education,
you start playing Monopoly
or Cash Flow you might be on that road.
Anybody can learn, but the
way they teach right now
is via fake teachers, teaching you to save
fake money and to buy fake assets.
And you wonder why there's
a gap between the rich
and everybody else.
Next question, Melissa.
- [Melissa] Our next
question comes from Damon
in Gilbert, Arizona, favorite
book, Rich Dad Poor Dad.
What are your top three
choices for financial news?
Not which books, but
which specific outlets
do you and Kim seek out for
your daily financial updates?
- [Robert] That's a very,
very important question.
Again, that's in my
book, Fake, fake money,
fake teachers, fake assets.
The story I tell in fake
teachers was when I was
in Sunday School, which
I flunked out of also,
the teacher asked me what
made the three wise men wise?
And I said they had money,
you know, frankincense
and myrrh and whatever
the heck, gold and myrrh.
Said, no that's not it.
Let me know why.
She says they always sought new teachers.
So, the whole point here is this.
Never stop looking for teachers.
Even a bad teacher will
teach you something
if you're aware they're,
you know a fake teacher
is somebody that doesn't
practice what they teach
and when it comes to life,
most teachers don't practice
what they teach.
Like my calculus teacher, I
was flunkin' out of that too.
In my third year of
calculus I asked this guy,
I said, hey, do you ever use this stuff?
He goes, no.
I said, well, why do you teach it?
He says, 'cause I get paid to.
And that's when you got
to know, you have to ask
your teacher, do you do
this every single day.
You look at most of our
advisors, like Tom Wheelwright,
he does what he does.
He does taxes every single
day so he's my teacher.
I don't listen to a high
school accounting teacher
'cause they're fake.
They don't do this every day.
You know, Kenny McElroy,
when it comes to real estate,
that's all Kenny does, every single day.
- [Kim] Every single day
he's out there doing it.
- [Robert] Yeah, and so
the problem is you have
to know who's real and who's fake
and one of the best ways to know
if somebody's real or fake is,
do they do it every day.
Again, that goes back to what Kim said
about the cone of learning.
You want somebody who's
doing the real thing.
Right below that is called
stimulation, or a game.
So, you practice Cash Flow,
you practice Monopoly,
and then you seek real teachers.
And there's always a new teacher.
That's one of the beauties
of Rich Dad radio.
The best thing I love about it is I get
to listen to people like Nomi Prins.
You know, there's no way
you know, Goldman Sachs
of Bear Stearns or Lehman Brothers
or Chase Manhattan would ever hire me,
so I could never learn what she learned.
- [Kim] That's correct, but it also goes
to some of our radio
show guests who are doing
the real thing everyday like Nomi.
So for example, Bert Dohmen.
So, Bert Dohmen, he's
trading every single day,
he's watching the
markets every single day.
So, the whole company
subscribes to his newsletter
called the Bollington Report.
- [Robert] Yeah, I would
subscribe Wellington Report.
It's not cheap, but
it's the most valuable,
not that his information
is usable, but I would say
he's teaching as he's teaching you.
So, he's not telling you to buy this stock
or short that stock at all.
He actually teaches you.
It's like with Alexander
Elder on, his book is
Trading for a Living.
That's all he does.
You know, he's an excellent trader.
So, be careful on who
you take your information
or education from.
Are they doing the real thing every day?
Don't ask Kim and I about raising kids.
All we have is a puppy, right Kim?
- [Kim] That's it.
We have no advice on parenting.
- [Robert] Kim's great at raising puppies,
but not raising kids.
(laughing)
So, once again, thank
you all for listening
to the Rich Dad Radio Show.
Thanks to Nomi Prins.
Once again, her book is called Collusion,
how central bankers rigged the world,
and you can submit your questions
to Ask Robert at richdadradio.com.
Thank you for listening to
the Rich Dad Radio Show.
