Robert Kiyosaki, the author of the book, ‘Rich Dad, Poor Dad,’ flagged the possibility of a European country going under, potentially the first country to earn this dubious distinction.
Germany, Europe’s largest economy, is staring at the possibility of going bankrupt, Kiyosaki suggested on Friday. “First BANKS. COUNTRIES next?” the best-selling author tweeted.
“Will Germany be the first country to fail? Go Bankrupt?” he added.
The German economy contracted 0.3% in the first quarter of 2023 after adjusting its initial estimate of zero growth, data from the Federal Statistical Office showed on Thursday. This followed a revised 0.5% contraction in the final quarter of last year, meeting the definition of a technical recession.
The statistical office attributed the predicament to falling consumer spending as prices remain stubbornly high.
Kiyosaki also fired another stark warning of America potentially following in the footsteps of Germany. “Will America default after Germany?” he asked.
First-quarter U.S. GDP data released on Thursday showed the economy growing at an upwardly revised 1.3% rate, propped up by a 3.8% jump in consumer spending. Key macro variables held up well.
“Politicans debating raising $30 trillion US debt limit bad comedy, ‘kabuki theater.’ Facts are: US bankrupt. Unfunded liabilities as Social Security are over $250 trillion. Financial market ‘derivative assets’ measured in quadrillion and thousands of trillions,” Kiyosaki said in a tweet.
Kiyosaki advocated for buying digital currency such as Bitcoin.
He has been a vocal supporter for the digital currency for years and has invested in Bitcoin during the pandemic. Kiyosaki is currently predicting that Bitcoin will be worth $500,000.
The Rich Dad, Poor Dad author previously supported long time friend Donald Trump in his presidential bids.
Kiyosaki previously warned about the U.S. defaulting in the economy and claimed the dollar will be dead.
“So, there’s going to be quadrillions of dollars coming back, and the ramifications of that are possibly hyperinflation,” said Kiyosaki about rising inflation. “And this thing [U.S. dollar] goes to trash. This becomes toilet paper. This little dollar here. Because there’s so much of it out there.”
That said, risks remain, including the banking crisis that claimed the scalps of three mid-tier banks and also the looming possibility of a debt default.
Treasury Secretary Janet Yellen, President Joe Biden and economists have warned of serious economic repercussions if Democrats and Republicans do not reach a deal to raise the debt ceiling before the U.S. Treasury runs out of cash.
Produced in association with Benzinga
Edited by Alberto Arellano and Sterling Creighton Beard