Robert Kiyosaki exemplifies the phases of which the system chews you up and spits you out. In 1997, he wrote his best selling book entitled “Rich Dad, Poor Dad.” In the early 2000’s, I was hooked on his materials.
I had the books, went to seminars, and I even went to group play of his Cashflow game. Back then, he was on top of the world. His teachings made sense. Poor people work for money, the rich have money work for them.
His main philosophy was to build up positive cashflow. What is cashflow? Positive cashflow is when you have more money coming in than going out. The negative cashflow, is taking in less money than what goes out.
The best way, he recommended, to get positive cashflow, was to buy property and rent them out. As long as the expenses were lower than the profits, you increase your cashflow.
Does this sound familiar? Well, we’ve been talking about going parabolic for a number of posts now. Given enough time, many people will go parabolic in money. This is an issue that came up a lot in live game play.
People will often ask, “What happens after you finish the Rat Race? Do you just keep buying forever?”
The organizers and teachers never really had a good answer.
I do.
We all know the answer.
It’s like a game of Monopoly.
One person owns everything.
Also, Kiyosaki himself complained that rich people warned him many times about teaching what he was teaching. He said that they wanted to ‘protect the game.’ As in, if people understood how things worked, it would disrupt the entire system.
He also said, many times, that the rich wanted to ‘keep them poor.’ In my opinion, he hit the nail on the head. Why then did he go bankrupt? Our antagonist jealously guards his economic loops. Only one player gets to go parabolic!
In the same early 2000’s, banks started issuing sub-prime loans. Meaning, that they began to give notes on homes to people who couldn’t afford it.
For a while, housing prices skyrocketed. What happened was so large and widespread, that I could write books about it. All I’ll say, is a person who bet big that sub-prime loans would fail, eventually became the 77th Treasury Secretary of the United States.
Moreover, who was blamed for the crash? Stupid people.
I heard Black people.
I just want to quickly summarize. Banks did a bad job, at the one thing they are supposed to be good at, lending out money. Which hurt everyone. What did we do as a nation?
We gave banks access to near-zero interest capital, in order for them to recover from the loses that they incurred themselves. They idea had to be that they would then loan the money out to American’s, and stabilize the economy.
Nope!
What did they do? Rich people bought up most of the foreclosure inventory, at 1%-2% interest rates, and then they jacked up the prices.
Effectively killing the idea of buying properties to rent them out for cashflow. Kiyosaki and basically all off of his students were wiped out, with no potential investment properties to start over with.
If I’m right, then our antagonist with the parabolic income moved heaven and earth to make sure Kiyosaki and his entire Cashflow franchise failed completely.
It seems like a conspiracy because it is. They tell us that the housing market is a free market. But housing prices have been artificially high since 2008.
In addition, There are 28 empty homes for ever single homeless person. What we face now, is a crisis of reality.
It’s time for a paradigm shift…