The Truth About Socialism and Why I'm A Capitalist -Robert Kiyosaki (Millennial Money)
We’ve heard a lot the past decade about quantitative easing. Basically, it’s the government taking rich dad’s advice and printing money… literally.
As Robert discusses in his new book, FAKE, there are three things we need to be diligent about as we continue to improve our financial education.
The first of these, FAKE money, is what Robert discusses in today’s video.
The US Treasury creates a bond which they sell to the FED. The FED then turns those bonds into money which is given to the Big Banks. The Big Banks then loan that money to the rich. This money printing process isn’t done for free, however. The taxpayer is the one holding the IOU that the US Treasury created with their bonds.
After Robert discusses how money is created out of thin air through the Mandrake Mechanism, he continues to explain how the US taxpayer is now on the hook for student loans, as well.
Back in 2009, President Obama shifted the flow of money out from the FED and into the hands of the people for their student loans. Where students previously sought their loans through the Big Banks, the loans were now backed directly by the US Treasury.
Robert ends the discussion with a warning about the current Bubble Economy we find ourselves in and how to best prepare for when it pops.
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