How to Prepare for the Future and Avoid Being Caught in the Crash - Robert Kiyosaki & George Gammon

this is the rich dad radio show the good news and bad news about money here's Robert Kiyosaki hello hello hello barbecue sake the rich dad radio show the good news and bad news about this economy and it's a very very important show because what we'll be covering is how can you see the future there was a question if you're sitting at home right now worried about your job or your business whatever you worry about there's a lot there's a lot to worry about there's a lot to worry about is what is going what does the future hold and that's why this prior the most important program but it's not see most people just watch the stock market that's all they watch and they don't know much about with much to home prices in their neighborhood and that's not good enough so our guest today is George gammon he's my new hero I mean he takes the all truck he takes the ultra complex and puts it in pictures so you have a chance his program is called rebel capitalist on YouTube please follow him even if you don't understand him at first just keep tracking with them because you're gonna see what 99.99% of the world's population will never see because what George puts into pictures is the real cash flowing through the monetary system any comments Kim no I'm just I'm anxious to get started because the two of you are like bookends and you you just complement each other so well so I'm just ready to get started possibly can your viewers you guys have got to track this guy man he's the best teacher we got on planet earth today if you want to see the future so George give us a background how did you become a fortune-teller well first and foremost I almost flunked out of high school me too so we have that and but I knew once I got done with school that I wanted to be on the B side of the cash flow quadrant so I was an entrepreneur from the very beginning I had a few successes a few failures as fortunately a self-made millionaire by the time I was 34 and then I got to about 38 2012 and I said you know what I've built this machine that's consuming all of my time I don't have that much freedom I would rather be on the AI side of the cash flow quadrant so I retired in 2012 and when I did I got into macro and I was in the Marina Bay Sands and Singapore I remember like it was yesterday at about ten minutes to blow before my dinner date and I was just on YouTube ironically enough and I ran across the series from Milton Friedman free to choose and that took me right down the rabbit hole and he articulated so well what had been in my mind just you know for so many years and then I got into Thomas soul then Jim Rogers Jim Rickards I remember watching videos of you Robert on YouTube when you were on CNBC talking about Lehman Brothers and you know but that's really what got me involved with macro and I've been obsessed with it ever since it's all I talk about and then we go to today where I've got this YouTube channel that we started about six and maybe about eight months ago and it's just grown tremendously I do whiteboard videos on macro trying to break these complex topics down into simple simple digestible videos using a whiteboard it took us eight months to get to a hundred thousand subscribers we're growing quickly and I'm having a lot of fun interviewing people like you Jim Rogers Brent Johnson just all these people that I looked up to for so long and I didn't I didn't realize George that you also followed the same philosophy in real estate that Robert and I did in terms of buying cash flowing real estate too and at one point your your cash flow was it was greater than your living expenses just as we did yeah that's absolutely right in 2012 it goes back to macro and I looked at a chart of the US housing market going back to 1900 adjusted for inflation and I saw that we had just been in this massive bubble and we came down but we were in 2012 we were right at our historic trendline so I started studying Japan the crash they had in 1990 I saw that their home prices went down by about 60% at that time we were down by 50% so I figured that it would be a good time to go in the cash flow was super super cheap back then the cash flow is actually cheaper than the assets themselves so I went almost all-in with real estate in 2012 and I've been doing it ever since now I invest in real estate in real estate inside and outside of the United States right right now why you look at it I mean medi in Colombia what a great place man beautiful anyway I want to get back to why you should be listening to George gammon here and the reason is is similar to me I took the financial statement basic accounting and made it simple asses roses liability and statement of cash flow and what George does he took the plumbing system of the whole economy of especially at night say it's the Treasury and the Fed and he put it into picture so let me show you what George does this here is the most boring diagram straight from the feds website wonder why we're all screwed up because this is what the Fed does academic those a student's PhDs is 900 PhDs in there they should all be shot at dawn for putting this garbage out and so what George does on his site rebel capitalist he puts this into pictures I'll say this again because the most important you know Kim and I started off with our board game cash flow and we're talking about a couple of days ago about how our brand at that time was cash flow and what happened why do we change brands we were in we were in Australia with a friend of ours who was a mark Marketing guy and he said you know what's what's your best selling product and Rich Dad Poor Dad had taken off by this time in Australia was huge in Australia and we said well the best selling product is Rich Dad Poor Dad he goes that's what people know they don't know cashflow they'll all they know about cashflow is cash flowing out of their pockets I said your brand your brand is Rich Dad that's how they know you and that's how we we instantly shifted our brand to rich dad from cashflow we still love cash flow and I am the queen of cash flow I'll just so George look I'm doing my best man I want everybody to tune in to you in a regular basis at rebel capital because what George does is he he takes this boring piece of dock he look if I can't sleep at night I'll read this ok but where did I grow up I actually grew up in oil in oil fields so this here and Tyrell posted this is an oil refinery so every time I watch George's whiteboard presentation he's actually showing us part of the plumbing and the reason plumbing is important it goes back to cash flow because when you're looking at this plumbing of an oil refiner I don't know where it is but I grew up in the refinery of Richmond California because I was sailing for Standard Oil as a student and all that stuff most boring place on earth anyway I'm watching the cash flow so the pipes all of these oil pipes and refinery pipes are showing the direction of flow of oil and gas and all those other things so the way you predict the future you've got to watch the cash flowing and that's why what Kim says most people have no idea what that means it's going out so financial intelligence or financial IQ is can you turn the finance your cash flow back into you and because most people have no financial education their cash keeps flowing out number one is taxes number two is they buy that house if call out they call an asset but it's actually cash flowing out to the bank and number three is your 401k or IRA whatever you've got the cash is always flowing it's also why every is gonna get these stimulus checks and that cash is just gonna flow right out because they don't have anything flowing back in right now so let me say that one more time because we are an education company we don't sell anything but education but George has a power to take this and put it into pictures like this on his whiteboard and the reason you want to study what George is saying because he's gonna keep you up to date on which way the cash is flowing it is the most important thing a person can do so you want to see the future you want to see which way cash flows so what George is talking about is this chart here you know this this was a subprime crash up here 2008 you know and he entered the market down here and that's what smart guys do most guys were running but he entered the market right here Kim and I entered right there also hmm we borrowed three hundred million dollars with Kenny McElroy and we thought we died and went to heaven it just took off after that so what do you want to say about this chart and how did you jump into this chart home prices sorry home prices those us home prices adjusted for inflation going back to 1900 and I think you you touched on some crucial components there Robert and number one when you let's use an example what you did in 2000 or during that time of the housing crisis you brought 300 million dollars to go in and buy cheap assets and to buy cheap cashflow but you're also buying assets that you could depreciate on paper so you could attack a cash flow and you didn't have to pay taxes on it and I want to point that out because in today's day and age we might get into these cycles that we were talking about with Ray Dalio earlier but we're right at the top of one of these cycles and the government is going to be left with a choice on how they the you know they tighten their belt they create inflation but one of the main things I'll most likely do is increase taxes so unless you've got some sort of vehicle set up to where you can decrease your tax bill if you're on the left side of the quadrant you're gonna have some big big problems coming up and I'd also take it a step further and most people don't know this in fact I've never ever heard anyone talk about this except for just the research I've done on my on my youtube videos but they actually changed the tax bill into and 18 so as you know they increased the brackets based on a certain measurement of inflation well they change the measurement of inflation so it increases the tax brackets slower than it otherwise would have so if inflation is going up that lets say let's just take it to the extreme and say it goes up a hundred percent well if they only increased tax brackets by two percent then you're going to be paying a lot more of your income in taxes a greater percentage although your purchasing power might not go up so the government is playing all of these tricks to make sure that they pick your pocket whether it's explicitly or implicitly that's and that's income taxes that's property taxes that's all kind of taxes across the board isn't it George yeah that's that's income taxes correct it's Social Security there's a lot of things where they made this shift in the way they adjust the CPI they call it they went from the CPI you to something called a C CPI you which again it's just another way of calculating inflation but it but it understates inflation and that also applies to GDP you know if we've got nominal GDP at 5% and the gut and the government or the Fed is telling us that real GDP is 2% that's because they're adjusting 3% for inflation but what happens if that number that they're adjusting by is artificially low that means that GDP is artificially high so if you go back the last 10 years and say boy you know this this economic boom or this recovery that I've been hearing about on the news it doesn't feel like it's been a recovery I mean I hear everyone talking about it but it sure doesn't feel like it to me that's because if you actually adjusted for the real rate of inflation real GDP might have been zero if not negative over the last 10 years or so right so everybody plays lesson every George is speaking over my head right now he thinks I make it simpler I mean I even make a doggy simple I want to encourage people to chew tune into rebel capitalist with George gammon and just track em on a regular basis and slowly over time it'll start to make sense to you because what George is watching again is like an engineer would be on a on a oh you know oil refinery which way of things flowing and right now the cash is flowing out at high speeds and and George talks about it calls it the repo market and the average person doesn't know what the repo market is and that's what the hemorrhaging has taken place is that correct George it is and I think that's a great point Robert in our discussion the other day we talked about one of the videos are a few the videos I did on the repo market and how you saw the problems in the repo market and that because can I back up a lot of people don't know what you're talking about when you say repo market what what is the repo market yeah so let's dive into that I'm gonna make it super simple so really what happens we have all these banks in the United States hedge funds financial institutions and they need cash they have a lot of assets let's say they've got a big piece of land but in order to make payroll or rent they can't sell that land quickly so they have to come up with the cash so they'll use that land as collateral and I'm just using this as an example they'll use that as collateral to get the cash they need to fund whatever it is overnight or a term repo maybe got 20 days 30 days so these are repo agreements or repurchase agreements and I could get into the technical it's just a quick loan between two parties so if it's Robert has a truck let's say and he needs a thousand bucks to pay some bills well I've got the thousand dollars I'll give it to Robert he gives me the truck as collateral we trade back the next day and Robert gives me a little bit of a premium for that loan that's what a repo is or repurchase agreement it's just done between all these banks financial institutions and hedge funds so back September 7 so this is what George is talking about please it's rebel capitalist you'll be talking about one section here the next day's talking about something here and all so even if you know if you don't understand it now it's a rebel capitalist tune in find out what Jorge says the more you listen to them pretty soon the cash flowing will make more sense to you so the whiteboard videos are just George cam and that's the YouTube channel George Cameron the rebel capital is sure that interviews ok do with guys like you and Jim Rogers and Rick rule and Doug Casey and all those awesome guys so let me tell me something so one of the reasons we got out was we could see the repo market is very simply banks get in trouble too they come out short of cash like all of us except when they come up short of cash it's in the billions yeah that's why Lehman went bust yes because the repo market because no one wanted the counterparty risk right and that's how you know so I'm you know please tune into George gammon follow him on a regular basis every time he explains something to you you'll get a little clearer and that's how you see the future so and so what are you seeing in the future George well going back to September 17th in the repo market we saw interest rates spiked almost up to 10% which was totally unprecedented usually it follows the Fed Funds which was called 1% 2% right around there so if you see this happening you know that there's something wrong underneath the water you're seeing the tip of the iceberg you're seeing the top of that wave but you know underneath there's a lot of problems and that's what prompted Robert to take some some action so I think what I want to stress and I'll explain this this momentarily but what I really want to stress to the viewer is that if you're able to just start to understand the macroeconomic picture and it doesn't need to be complex list the reason you think it's complex is because all these economists and academics they use all this jargon and technical terms but if you just break it down into simple English it's actually very easy for people to understand and if they understand it they're gonna be able to make much better decisions for themselves and their family on a four in the future for their their finances so I well it's me or anyone else make sure that you're trying to really pay attention to what's going on so that was the first rumblings that you saw is in the repo Marcus I had the virus kick in wait wait so let me go ahead what happens is though debt to the consumer I could go and borrow buy a house will I say three percent but in the repo market they raise the interest rates are ten percent overnight yeah that meant they didn't trust the banks you see when George was saying that you kind of hit a picture there's problems in Denmark someplace you know I mean they the banks can't cover their shortfall and that last video you know that of the last one we do with Marin KATUSA you talked he talked about swap line swap lines are very different than repo so they really want to pay attention is when Marin came on he was talking about the swap lines he says something made my blood curl he says a swap line is when the US Federal Reserve lends money to Japan to lend dollars so Japan can then pay their bills in dollars so the Japanese have no dollars so a swap is the Fed says to Bank of Japan will loan you will loan you the money so you can pay us back imagine that right yeah and that's they've got swap lines and they've got FEMA set up a repo market for international banks so it gets a lot worse but yeah I think the average viewer might be listening to this thing okay Robert I get it but what how does this apply to me when Marin says the Bank of Japan which is a federal it's a like the central bank they had to borrow half a trillion that's a lot of money short term so when he said that I want oh my god I can't get that the reason you want to tune in to George Gammons programs if you the more you watch it soon that starts to make more sense and you can see the future so you're not caught just watching the Dow Jones Industrial Average so we come back one more with George gammon his fabulous program and we're gonna go into just what you were saying George what does this mean to me and what can I do and how do i benefit from all of this information absolutely that's why if you really want fantastic education better than anybody get it I got this I got in college it's the Georgia Gavin show but right back with George and Moore and how you can see the future welcome back robert kiyosaki the good news it's a radio show the good news and bad news about money Steven I still have my allergy but anyway Calissa the radio program anytime anywhere on itunes android or youtube please leave a comment whenever you review it and all of our programs are archived at Rich Dad radio.com we archive them because we're an education company and if you watch this program again you'll learn twice as much but most importantly our friends family and business associates who really need to step up their financial education go to rich dad radio.com listen to this program we have a George gammon because he is the man with the plan right now I'm blown away it was simple he makes the most complex things that are invisible to most people and again the theme of this program is how do you prepare and see the future so you're not caught in the next crash because this last crash caught a lot of people flat-footed any comments Kim so yes so George is a he's an expert in that not just the macro but the micro too but we're talking a lot about the macro but he's also a entrepreneur he's real estate investor has a fantastic YouTube channel George gammon GA mm oh N and so George you know we've been talking big picture we've been talking macro so our listeners may be asking now hey what about me what does this all mean to me absolutely yeah let me dive into that so we are talking about the repo market as an example and Robert you have that great picture of the oil rig and all the plumbing going back and forth that's basically the dollar funding market so how it applies to the average Joe and Jane let's just say that you have you've been saving your money you've been working hard you've been doing all the right things you've got a little nest egg saved up and you go to the bank you're like oh my gosh they're only giving me point five interest or zero or who knows what it is it's you can't even see the interest rates they're so small nowadays so you say okay where can I go to get a little bit higher rate of return but I still want to be safe it's got to be safe so then you might look at a product like a money market mutual fund or a money market fund and then you look at this - well that's a fall my buddies are doing it it's just like a bank account but I get maybe a 1.5 percent return well what the average person doesn't realize is they're taking exponentially more risk just to get that 1% additional return so how is that because the way that the money market mutual fund gets the additional return as they take your hard-earned savings and money and they put it into the repo market or they put it into the commercial paper market which is basically funding for corporations the same type of thing so the question then becomes that that person that's just watching Monday Night Football and just enjoying life just you know with the white picket fence the two kids the golden retriever they don't care about what's going on with the plumbing they don't care about the dollar swaps but does that person really want to lend their hard-earned savings to Deutsche Bank to HSBC you know some of these banks that could be crumbling as we speak or to put things into other terms like more America centric corporate terms with that individual want their money being lent to American Airlines right now or Boeing right now where every single time you turn on CNBC or the TV you see that they're asking for another bailout because they're about to go bust that's what that's how this macro and that's how the cash flow and the plumbing that Roberts talking about that's how just one way that it can affect the everyday person so again it's a financial education and what George is talking about is vital again it's about this plumbing she'll never see beneath the surface and it's a lot of plumbing so everything every program I watched George he's talking about one little section look I said I grew up in these things as a college kid looking at this and this or this but they all affect the whole they all affects the whole so if our banks are going bust right now what does that mean yeah it's not just the banks it's the government it's the private sector it's our entire economy because the these debt cycles run in courses of seventy five to a hundred years I'm going back to Ray Dalio and Ray Dalio has some great YouTube videos on this but he's got charts of the long-term debt cycles and the short-term debt cycles long story short right now we're at the top of a 75 200 year long term debt cycle so the only way from here is down and Robert you-you-you call this in a lot of your your books and you kind of predicted this and had the foresight to see this coming but when you get to the top of one of these debt cycles the only thing the government can do well there's four ways out of it number one they can choose austerity which very few governments do and that's just tightening the belt spending less everyone feels the pain think of the deflation of depression weight of the 1930s or they they restructure the debt well it's not likely we're gonna do that with China it's not likely we're gonna do that with the big banks because they're the creditors and or they could just default say hey we're not paying you or what most governments do is they choose money printing this is creating inflation to bail out all the people who have the debt whether it's government's whether it's individuals so it went once you get debt to a certain level you've got it you don't have to but most governments choose to inflate it away so let's what does that mean for the average person well if the government is going to try to create inflation meaning the cost of goods and services going up what you want to do is you want to make sure that you're positioned for that so as an example if you just own your own home you've got to make sure that you've got a 30-year fixed-rate mortgage because if they try to create inflation if interest rates go up then your interest rate is going to go up unless it's fixed and what happens when you're a debtor and they create inflation you're gonna have the opportunity to pay the loan back your mortgage with Cheaper devalued dollars so the way they can think about that is if they borrow let's say $100,000 the rate of interest means that they're paying the bank back with increased purchasing power because you've got principal plus interest so what happens in inflation though is inflation allows the the brower to pay the debt back with less purchasing power so if your rate of interest let's say is 1 percent or 3 percent we'll call it but if inflation goes at the 5 6 percent the Delta between those two is a transfer of purchasing power from the bank to the individual homeowner and I think a lot of people listening to this probably have a mortgage if not on a rental property on their own home I think that's the very first thing they can do to be proactive also gold silver Bitcoin you talk about that all the time and I could continue to go on but that's where I'd start well this is what this is why I cannot I've been watching George Alden almost almost a year now we first came out and it kind of it was a kind of skull of confirmation bias because when Kenny our partner call this is I think we should start selling some of our junk not that is junk but it was non-performing and first and first what we did is we fixed all of our interest rates right fix all our interest rates on our properties good job and so we we got rid of our nonprofit not a non-performing but less performing properties so we're floating high as a kite right now yeah and the Rich Dad company is doing very well because the cash keeps flowing in but we're in position for it so those are the reasons I cannot stress more I'll show this picture again I'll be redundant I'll being osseous about it what George does he takes if this is the whole world economy in here you'll show you where it's flowing at different parts of it and where the log jams are and what you've got to look out for so in 20 in 2009 September 2019 when the repo market backed up in interest rates with 10% the average guy was watching Monday Night Football all over they watch they had no idea the whole thing was coming down on them yeah so that's so that's why cannot stress that's why Kim says that time I'm talking about George just like you know what are you talking about one more thing Robert if you remember our conversation you talked to me about how important it was to invest as an insider right and I think that's another thing that the average person can take away from this conversation is that you can look at macro you can start to understand it but it doesn't mean that you have to be an expert for you to utilize it in your own financial situation so as an example of that as you guys said I got into real estate in 2012 and then in 2014 or so I started investing outside of the United States looking for better returns so in 2015 if people remember back that far we had the price of oil crash very similar to what it's done recently it went to about $30 a barrel so back then I didn't know anything about oil I was just kind of getting my my bearings with macro but I knew that I wouldn't last for the long term so I wanted to go long old I wanted to buy oil but I didn't know anything about it whatsoever but I did know that the Colombian peso was loosely tied to oil because they produce a lot of it so I thought okay well if I can buy pesos well then that's kind of going long oil but I don't really know anything about currencies either but I do know about real estate so what I can do is I can go to Colombia I can buy real estate denominated in pesos so then what I'm doing is I'm buying oil with something that I actually know about the alternative would have been to go in and maybe buy bonds I would have gotten crushed in Colombian peso bonds or I could have bought something like the ETF like us oh and back then I didn't know that US oh they didn't the underlying asset wasn't oil it was future contracts so if I would have bought it back then long story short I would have lost a lot of money where instead I made a lot of money by first looking at the macro having a decent understanding and then asked myself how can I apply this to some thing I know well and it doesn't have to be real estate you could be a pharmacist you could be a schoolteacher you could have some sort of expertise where you see something you're an insider where other people aren't at great point listen listen to them listen buddy else is something invest in what you know right very important and very very very very important is this sound advice so I can I ask a question sure we're sitting on this coronavirus which is changing everything what what is your crystal ball what are you seeing not your crystal ball because you're studying it and you're seeing all the charts and the numbers what what are we looking at well from an economic standpoint I think the biggest question is do we have deflation or inflation and that's kind of the debate going back and forth and for the average person I think they just have to look at the entire economy as supply and demand so the supply is how much stuff do we produce how much goods and services demand is how much money we have our willingness or our access to credit to go out and buy the stuff so as most people know we're in lockdown you know depending on what state you live in what city so there's a lot less demand there's a lot less of the goods and services that are actually being purchased right so that decreases the demand equation that's what most people get fixated on so they okay well we're just we have to have prices going down deflation but they forget about the supply side of the equation because if the people can't go out to produce goods and services well the supply will go down fast as well so then the question becomes what's going down faster demand or supply well then you look at this the supply chains that have been disrupted coming into the United States if you go to Walmart Target Home Depot the majority of the stuff you see on the shelves was produced outside of the United States so if those supply chains get disrupted that means less supply then what happens is usually going back to dahlias example of long term debt cycles you get social unrest and I hate to say that but that's just the reality of the situation if you look at history and typically the way the politicians take care of social unrest is through helicopter money so whether you want to call it MMT ubi it doesn't matter it's basically the government spending money into the real economy getting into the back pockets of the average Joe and Jane we could see a situation in the future where the Fed is actually doing it they're not technically allowed to do it right now but they've been breaking all of the rules so if there's more money in the pocket of the average person that means there's more demand even though they're sitting at home not going to work for those goods and services in the economy that don't require debt that's key Kim because people see deflation and inflation as just this it's it's binary right it's either one or the other but it's actually very nuanced so if there's less debt in the system that means asset prices could go down or via cars anything that most people buy using debt okay the prices of those go down but anything people buy or most goods and services people buy on a daily basis that don't require debt such as groceries those prices typically go up and if I saw on CNBC the other day that in a lot of markets around the United States food prices are up as high as 25 percent it's always started easy this happening in real life yeah what's happening is because of the Corvette or whatever they call it the Meatpacking companies are shutting down yeah and so there there's now shortages of mate but what what so a great example of supply decreasing faster than demand but what's happening is that and the Fed is pumping trillions of 2.2 trillion into the economy so you have a decreasing supply increased liquidity and that's why the shelves are empty for pork and beef and all those things and Arab Spring which I don't forget when that happened but the real rioting wasn't about muslimism or Christians and all this Arab Spring was because the mom-and-pop couldn't afford to go to the store food prices went so high and I think that's what you're saying is when people get hungry or the can't afford food that's when the social situation gets worse correct way ladies and gentlemen we're out of time but I cannot encourage you more please go check out George gammon and his rebel capitalist show and listen to his guests you know I'm on it constantly because I want to see the future I don't know what's coming down the road not tomorrow but what's coming down the road like I'll say it again George is the only guy I know who can take this thing here and show you a little pictures of it and that's the whole monetary system which isn't a mess right now so George thank you very much George excellent excellent you were having me as a pleasure keep teaching keep teaching you're the best man you're the man thank you thank you George well we come back we'll be talking to Kim and I about what we see in the future we'll be right back welcome back robert kiyosaki there's a radio show the good news and bad news about money we brought across some Old Town Scottsdale Arizona where it's empty but anyway it's a beautiful time of year here you can listen to the Rich Dad rated program anytime anywhere on iTunes Android or YouTube and please leave a comment whenever your listen to it and all of our programs are archived at Rich Dad radio.com we archive them because repetition is how we learn listen to this program one more time you'll learn twice as much but more importantly right now especially on this economy what's going to happen in the future please watch this video with friends family and business associates and discuss it because the future is not gonna be the same the future changed just recently any comments are kept well I really enjoyed George because he does keep it simple and unfortunately he does that I'm not gonna sign fortunately but the his insight into the future given the coronavirus is very he says it very simply very straightforward that when demand for goods goes down and when people are not working they're not going to be spending money on things except necessities like groceries and toilet paper but then also supplies going down because as you mentioned that play that meatpacking places are shutting down and dairies are shutting down and and when that happens and food prices start going up then we're gonna have we're gonna have major major chaos worldwide chaos because people aren't going to be able to toward food and when they can't afford food they do crazy crazy things they could put up with a lot but no yeah not without food so anyway I was named as George Gavin GA mmon so rebel capitalists his interviews are fantastic his whiteboard presentations are fantastic so let me just say something I've been studying this stuff for years and when George was talking I'm listening but I'm still hanging on for dear life you know because that boy is really smart it talks about the repo market the commercial paper market and all this and the lesson TV I saw him was on swap lines and and those are terms of they'll ever teach you in school and they're the most important things you can watch Kate today because our board game is cash flow all we're doing is watching cash flowing so right now if your cash is flowing out of your pocket then you're sitting at home or whatever you're doing businesses hemorrhaging cash and that should be a sign from God you better make some changes because you've got to be able to change that cash to come back into your flow into you and that's what George does on a macro scale is where's all this cash flowing to in front I mean I thought that was fascinating example of he wanted to invest in oil but he didn't know anything about oil and he knew about the Colombian peso but he didn't really want to do currency so he collected meta Hien Colombia and started buying real estate based on the Colombian peso I mean that's that's smart stuff yeah okay this is what you do during college this is where I spent my time this is not an oil rig this is a well processing plant so oil comes in and it comes out as gasoline kerosene jet jp4 and all this stuff so my degree is said well you know and architecture and shipping so this is what I studied and the beautiful thing of this plant here this think of this in your mind of Jorge's whiteboard but he's only taking one section at a time so if you listen to me over time you get to get the bigger picture of what's going on and he uses the exact terms an economist or real sophisticated personally would use for example repo repurchase market or commercial paper market or swap lines those are crucial because they're sure you which way the cash is flowing the difference with George as he explains what those words mean where so many economists just used as he said all this jargon and this can confuses me more he explains it simply no but he also said I watch I love his stuff because he's definitely macro and micro and he was saying most real estate guys are not even in micro they're mini you know they're all what schools in this district oh good school I think I'll buy here Oh interest rates at 2% okay they come by here but they missed the bigger picture and I cannot encourage you guys more to listen and watch this just follow him check it out if you don't understand it so what but sit with a friend like him and I will offer time to discuss these things and husband-wife discuss how the repo market doing today but we don't know where that money is going who's hemorrhaging and right now the repo market is hemorrhaging you think you have money problems the repo market has bigger problems and I just saw a Royal Viking lines or someone being shut the company they just went bankrupt it just cleared Ward and Taylor just began declared bankrupt and that's why the repo market is going broke because all of the debt that financed what Royal Viking whatever the heck they are Lord and Taylor or you know even Jack neiman-marcus just went back up all comes from the shadow banking system which is the repo market swap lines and commercial paper markets so George is the only guy I know who puts it into rough pictures and if you can track that if you don't understand it fully you'll be able to see the future and make better distinctions and he agree a wholehearted living I think we're going into hyperinflation we're gonna go to deflation or full well prices will come down but they've pumped so much money I mean trillions they claim is 2.2 trillion but we don't know how much they pumped into the repo market see we all know about the 2.2 but how much is way into the repo market that's the question and all that money flushes out and there's no pork chops out there that's gonna be this could be a fight at the counter me and again that's where abs spring blew up was because the Arabs didn't care who was winning the war the world price of oil they couldn't eat they couldn't afford to eat it commas that Kim know it's a scary scenario and when he says social unrest that's a real real possibility now if you can't eat nasty anyway thank you a lot of things that George gammon and please tune into his shoulders gamma GA mmon the rebel capitalist shows interviews are fantastic and thank you all for listening to Rich Dad radio thank you

Channel: The Rich Dad Channel

Views: 583,244

Keywords: TheRichDadChannel, robert, kiyosaki, rich dad poor dad, make money, network marketing, how to make money, how to invest, george gammon repo, george gammon gold, george gammon recession 2020, george gammon inflation, global financial crisis 2020, global financial crisis explained, robert kiyosaki, financial crash, rich dad, market crash, financial crisis, how to survive a market crash, rich dad radio show, economic crisis

Id: tzO_dxrJk6o

Length: 42min 38sec (2558 seconds)

Published: Mon Jun 15 2020