Resurging concerns about the dollar have prompted 'Rich Dad Poor Dad' author Robert Kiyosaki to recommend investing in scarce assets after he characterized an expansion of the Treasury's bond buyback program as quantitative easing. In an August 22 post on X, he linked the policy change to inflation risks and urged his followers to favor Bitcoin, gold, silver, and certain real estate. 'Printing more fake dollars,' Kiyosaki remarked.
The Treasury Department's decision increases the volume of buyback operations for nominal securities with maturities of 10 to 20 years and 20 to 30 years to support liquidity. In its August 19 statement on expanding the buyback of longer-dated securities, the Treasury increased the size of each operation from $2 billion to at least $4 billion; this decision is effective from September 9 through November 4. Kiyosaki stated:
'U.S. Treasury announces more QE (Quantitative Easing), i.e., printing more fake dollars.'
Prior to this announcement, long-term bond yields had surged sharply: on August 18, the yield on 30-year Treasury bonds reached 5.34%, a 19-year high. After the Treasury announced the expansion of operations, the yield on 30-year bonds fell to 5.184%.
Although both programs involve government securities, Treasury bond buybacks and quantitative easing are conducted through different institutions and have different stated objectives. The Treasury finances buybacks using proceeds from debt sales and cash already in its general fund, so one security is replaced by another, rather than new money entering circulation.
Quantitative easing, in contrast, involves large-scale asset purchases that a central bank uses as a monetary policy tool. The Treasury's actions themselves are not a Federal Reserve quantitative easing program.
Dollar's Decline Bolsters Kiyosaki's Inflation Warning
Kiyosaki also presented the fall of the U.S. dollar index as evidence that inflation will accelerate and that savers holding cash will lose purchasing power. As he put it: 'DXY (dollar purchasing power index) is crashing, which means inflation boom... which means savers holding 'fake' dollars will be the biggest losers.' His wording reflects his assessment rather than a direct measure of consumer inflation.
DXY measures the dollar's exchange rate against six foreign currencies, with the euro holding the most weight in the index, rather than directly tracking what dollars can buy within the U.S. The Treasury's statement has fueled a renewed discussion about 'debasement trade,' as the dollar weakens and prices of scarce assets rise. However, a decline in DXY does not automatically lead to a corresponding rise in consumer prices.
The author, specializing in financial matters, linked education to the ability to identify assets that can preserve or increase their value during inflationary periods. The 'Rich Dad Poor Dad' author offered this advice:
'The fact is that educated investors investing in assets rising in price, such as gold, silver, Bitcoin, and some real estate, get richer... while people without financial education investing in 'fake' assets get poorer.'
The national debt had already exceeded $40 trillion before Kiyosaki issued his warning, adding context to his concerns about borrowing. According to the U.S. Treasury's 'Debt to the Penny' data, the total outstanding public debt as of August 20 was approximately $40.03 trillion, comprising $32.28 trillion held by the public and $7.75 trillion in intragovernmental holdings.
A few days earlier, Kiyosaki had pointed to forecasts that gold would reach $10,000 and silver $200, naming silver as his preferred pick for August.
Bitcoin and Gold Remain Central to His Strategy
In his latest post, Kiyosaki reiterated his longstanding view that national debt, currency debasement, and inflation threaten traditional savings. In July, he warned that a global downturn could wipe out many people, while those prepared for significant market upheaval would benefit. This broader crash warning linked financial instability to U.S. debt and weakening bonds, although his description of the U.S. economy as 'bankrupt' was a personal assessment.
Bitcoin remains a central part of Kiyosaki's preferred way to counter these risks alongside gold and silver, despite the significant volatility of all three assets. His bullish Bitcoin outlook amid his earlier inflation warning linked rising national debt and potential money supply increases to the weakening of fiat currencies. These conditions do not guarantee that any specific asset will appreciate in price or maintain purchasing power.
The author concluded his August 22 post by returning to the theme of financial education, arguing that the greatest cost is not the time or money spent learning to invest, but the potential profit people miss when they are unable to recognize financial opportunities.
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