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Robert Kiyosaki Warns of “Greater Depression” as US GDP Shrinks in Q1 2025

As economic contraction hits the US, Rich Dad Poor Dad author advises investing in Bitcoin, gold, and silver to weather the storm.

The storm clouds over the American economy have begun to take shape — and for Robert Kiyosaki, this isn’t a surprise. In fact, the author of Rich Dad Poor Dad says the downturn is exactly what he’s been warning about for years.

Latest data confirms a sharp reversal in momentum. The US GDP shrank by 0.3% in the first quarter of 2025, breaking a streak of modest but stable growth. It’s the first such decline since 2022 — and for Kiyosaki, it’s only the start.

According to a report by Benzinga, the finance educator believes the country has entered what he calls a “Greater Depression” — one marked by historic debt levels, weakening job markets, and a hollowing out of retirement wealth.


Warning Signs: Numbers Tell a Worrying Story

Debt has hit record territory. American households are more reliant than ever on credit cards, with outstanding balances surging. At the same time, unemployment has been creeping up, suggesting deeper cracks under the surface.

Retirement funds aren’t spared either. Kiyosaki points out that 401(k) accounts are underperforming, and some pensions are being drawn down under strain — what he calls a “slow theft” of long-term savings.

“This is what I was afraid of,” he told Benzinga. “Debt’s at record highs, jobs are being lost, and most people’s retirement plans are losing value. It’s already happening.”

That perspective aligns with rising public concern in the US, where households are grappling with elevated inflation and rising living costs despite a relatively low official interest rate environment.


A Different Kind of Opportunity

Despite his stark language, Kiyosaki doesn’t see only risk. He sees a chance — for those willing to act decisively.

In his view, the ongoing crisis offers one of the rarest openings in decades to build lasting wealth. But not through stocks or mutual funds. His focus is elsewhere: Bitcoin, gold, and silver.

“Those who position themselves now — even with just one Bitcoin, or a few ounces of gold or silver — could come out of this crisis in a much better place,” he said.

To him, these are not just hedges against inflation. They are vehicles of transformation, especially for those starting with little. Kiyosaki’s message is clear: the game is rigged, but there are still tools available — for now.


Market Context: A Flight to Tangibles

His advice taps into a growing sentiment among investors looking for alternatives to traditional equities. With uncertainty looming large, many are eyeing hard assets — anything that isn’t tied to central bank decisions or fiat devaluation.

Bitcoin, despite its volatility, continues to attract interest as a kind of digital gold. Physical gold and silver, meanwhile, remain historical favorites during economic downturns — particularly in emerging markets like India, where gold ownership runs deep.

Kiyosaki’s belief is that these assets will do more than preserve wealth. He thinks they’ll multiply it. That’s a bold view, but not without precedent. Gold surged after the 2008 crash. Bitcoin soared after the pandemic’s economic shock.

“If a poor person buys just a little gold, or half a Bitcoin — that could be life-changing,” he stated.


Extreme Forecasts, Real-World Consequences

Kiyosaki has gone even further in previous statements. He believes that by 2035, Bitcoin could be worth $1 million, gold may hit $30,000 an ounce, and silver could top $3,000.

Whether or not these targets are realistic, what matters more is his underlying thesis — that those who wait for stability may be too late. As he puts it, “It’s not too late now. But after the crash hits? It might be.”

Not all economists agree with his outlook, and many see today’s economic dip as part of a cyclical correction. But the concern is real — particularly among households struggling to manage expenses or preserve their savings in the face of rising debt and stagnant wages.


What This Means for Indian Investors

While the US economic troubles are half a world away, their impact could ripple across emerging markets, including India. A weaker US economy often leads to reduced demand for outsourced services, softer FDI flows, and more volatile global capital markets.

For Indian investors, Kiyosaki’s message may feel familiar. Gold has long been a trusted store of value here, and crypto adoption continues to expand among younger demographics. His strategy — buy what lasts — has historical weight in this region.

Still, caution is warranted. Predictions of collapse can grab headlines but require clear thinking when applied. Not everyone can or should dive into Bitcoin or precious metals. But Kiyosaki’s broader point — to prepare rather than react — may hold water.

As the numbers continue to come in and central banks weigh their next steps, one thing is certain: the debate around economic resilience, and who comes out on top, is far from over.


Written by Arpit T. | Published on 30 May 2025 | Source: Benzinga

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