'Rich Dad Poor Dad' Author Warns 'Giant Crash Coming' In US Markets, Says Gold, Silver ‘God’s Money,’ Bitcoin ‘People’s $’ - iShares Silver Trust (ARCA:SLV), SPDR Gold Trust (ARCA:GLD)

‘Rich Dad Poor Dad’ Author Warns ‘Giant Crash Coming’ In US Markets, Says Gold, Silver ‘God’s Money,’ Bitcoin ‘People’s $’ – iShares Silver Trust (ARCA:SLV), SPDR Gold Trust (ARCA:GLD)

The economic trajectory has become difficult to predict, given the uncertainty surrounding the sum of the elements that make up the economy. Author of “Rich Dad, Poor Dad” Robert Kiyosaki is apparently in the pessimistic camp, based on his recent comments.

What happened: “A giant crash is coming. Possible depression,” Kiyosaki tweeted Sunday night. His comments come in the context of the setback observed last week after financial markets have done well this year.

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Inflation fears and some mixed earnings reports dampened the market rally in the week ended February 10th. Depression is a more severe form of recession, which, in turn, is defined as two consecutive quarters of negative GDP growth.

The best-selling author’s comments are perhaps a bit far-fetched, relying on consensus opinion on the near-term economic trajectory. Despite the multiple overhangs, the US economy is still holding up. The labor market was particularly dynamic. The January non-farm payrolls report showed that The US economy created 517,000 jobs and the unemployment rate was at 3.4%, its lowest level in 53 years.

That said, inflation continues to be a drag. With price pressure remaining at far from encouraging levels, Federal Reserve below Jerome Powell is unable to remove his foot from the pedal. Therefore, the prospect of bigger increases for longer is watching the economy.

Most economists are vouching for some form of recession in the second half of the year amid the pullback from the Fed’s expansionary policy. Participants at a recent roundtable hosted by the University of Chicago Booth School of Business suggested that there will be a mild recession towards the end of the year, given that the Fed has enough tools to prevent the situation from spiraling out of control.

Shuns Dollar, puts weight behind 3 assets: Against this bleak backdrop, Kiyosaki continued to support gold, silver and Bitcoin BTC/USD.

Giving his rationale, he said, confidence in the US dollar, which he called “fake money,” will be destroyed. Gold and silver are precious metals denominated in US dollars and they share an inverse relationship with the dollar. The dollar losing its appeal would mean people would favor decentralized alternatives such as Bitcoin.

Kiyosaki called gold and silver “God’s money” and Bitcoin the people’s dollar. By 2025, he expects gold to climb to $5,000, silver to $500, and Bitcoin to $500,000.

Spot gold is currently trading at $1,858.61 per ounce, spot silver at $21.86 per ounce, and Bitcoin at $21,864.35.

Price action: THE SPDR Gold Stock GLD ended Friday’s session up 0.19% at $173.36, the iShares Money Trust SLV gained 0.30% to $20.24, according to Benzinga Pro data. Bitcoin traded down 0.20% to $21,855.79 during Monday’s Asian session.

Photo: Courtesy Commons-logo.svg Wikimedia Commons

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