Skip to content
- Robert Kiyosaki links Moody’s downgrade to decades of flawed U.S. monetary policy.
- Economic parallels with the Great Depression raise fears of a 2025 market crash.
- Student debt and central banks emerge as possible triggers for financial system failure.
A financial author, Robert Kiyosaki, has advised about the risks of a massive economic crash in 2025. His remark comes after Moody’s revised its outlook on United States government debt.
Kiyosaki asserts that the downgrade marks a far more extended period of building financial insecurity. He suspects that the government’s taking on more debt will lead to steady economic damage.
He noted that today is a dangerous time since the situation is similar to downturns he has experienced before. Mulvaney said that economic measures now are identical to those from the years before the Great Depression.
Worries about bigger budget deficits and division in Washington led Moody’s to downgrade the US more than expected. According to Kiyosaki, today’s risks are woven together rather than limited to just a few fields.
He warned that mismanaging the country’s budget could increase interest rates and lead to fewer jobs. Mr. Powell also expressed concern that large-scale failures could occur in the bond and housing markets.
Apart from the downgrade, Kiyosaki underlined the role of past bailout events in recognizing current financial risks. He referred to the nearly doomed rescue of Long Term Capital Management in 1998 and the banking crisis that struck in 2008.
Student Loan Bubble and Central Bank Risks Raise Concern
According to Jim Rickards, who often partners with Kiyosaki, we should be concerned about rising financial difficulties. He identified the country’s huge student loan market as a major risk.
He pointed out that problems with student loans could inject instability into the whole market. Rengert added that central banks could need to bail out the system in such a collapse.
Both authors attribute our frail economy to a significant shift in government policy from the past. They linked the move to remove the dollar from the gold standard in 1971 as the reason it began.
They argue that the move enabled governments to print too much money while weakening financial discipline worldwide. In their minds, the decisions made back then laid the groundwork for today’s crisis.
Kiyosaki suggested that investors consider alternative options, such as relying on fiat money and the usual way of saving. He thinks such practices might not help much if there is a massive financial crisis.
The warnings from Kiyosaki and Rickards have increased the urgency of people’s concerns about the stability of the US economy. Because fiscal risks are growing, investors are paying close attention to signs that the economy could tip over in 2025.
Also Read: BitMEX Hints at Major Ripple Move Just Days Before CME XRP Futures Launch
