Recession warning: ‘Biggest crash in world history’ to hit gold, silver and Bitcoin
Financial expert predicts a market crash in October
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Earlier this week, Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad, forecast a “giant” market crash is set to happen this October. According to the personal finance guru, the wheels are already in motion for this recession to happen, and the price of gold, silver and Bitcoin will drop dramatically as a result of it. His warning comes as the United States Government’s Treasury Secretary Janet Yellen issued her support for removing the debt ceiling from Congress’ control.
Mr Kiyosaki asserts that any intervention from Secretary Yellen or the country’s Federal Reserve will not stop the pending market crash. Due to the stock market being artificially inflated during the pandemic, the finance expert believes an economic crisis is set to happen regardless of what any government does. Mr Kiyosaki explained that the world’s largest economy has expanded the volume of money while the velocity of cash has fallen, primarily due to lack of spending. The finance expert slammed the U.S Government for “printing fake money”.
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Mr Kioysaki explained: “This is going to be the biggest crash in world history. We have never had this much debt pumped up… the debt to GDP ratio is out of sight.” So they pump all this money in, prices go up. So it is transitory inflation, but we’re stacked with this massive debt and all it’s done is bump up the stock market and real estate market. The money has not gone into the economy, that’s the sad part. So the rich get richer, but the poor and middle class are getting poorer. It’s tragic what’s happening today.”
On top of this, the money expert warned that the real estate market would fall at the same time as the stock market. Mr Kioysaksi cited the collapse of China’s Evergrande Group as to why this will happen, explaining it would also impact the United States. Evergrande Group is the second largest developer in the Middle Kingdom and is on the road to bankruptcy. Currently, the business has over £300billion in debt, which is the largest amount of any company in the world.
Notably, Mr Kioysaki highlighted the financial opportunities which arise with every single market crash. While speaking to Kitco News, he singled out the impact on gold, silver and Bitcoin, in particular. “I like crashes, so this next crash is going to be really, really good, but it’ll bring down gold, silver, Bitcoin stocks,” he explained. “But the good news is a crash is a good time to get rich, so that’s why I’m optimistic and I’m very optimistic on gold, silver and Bitcoin, not on stocks.”
“So when it comes down, and it’s going to bring everything down with it, that’s when I’m going to be buying more gold, silver, and Bitcoin.” Financial experts have been long sounding the alarm of a potential recession due to many of the world’s largest economies having to utilise a great deal of public spending during the pandemic.
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