(rock music) - [Announcer] This is
"The Rich Dad Radio Show," the good news and bad news about money. Here's Robert Kiyosaki. - Hello, hello, hello, Robert Kiyosaki, at "The Rich Dad Radio Show," the good news and bad news about money. And if you haven't guessed by now, we have a lot of bad news and it's about time we got some good news. And so, that's why our guest
today is a long-time friend, Harry Dent, he and I go back and forth
about Puerto Rico all the time. But he has to live there and I don't because I'm in real estate and he's not. So that's the difference here. - [Harry] That is true. I'm not that much into real estate. - Yeah. And Kim is in South Carolina and I'm in Scottsdale, Arizona. So it's gonna be a very
important show because I think by now people
are kind of realizing for the first time, for many the first time, that printing money doesn't work. You know, and that's the
only solution they got left. So that's why Harry and
I have joined at the hip, we come with different solutions. So today, I'm gonna hear Harry's solution, because I think Harry's
solution is more viable than my solution and Kim's solution. And so, that's why it's a very important "Rich Dad Radio Show." Any comments, Kim? - Oh, looking forward to today, 'cause Harry's been quite
prophetic over the years and I think he has some maybe not predictions so much as the research that he's done and the studies that he's done and the demographics that he studies of what's coming down the pipe. So I'm anxious to hear his take, Harry, your take on where
the economy is going and you had some very strong comments, so look forward to talking with you - Also, I wanna endorse Harry's work because his forecasting
is pretty accurate. Very accurate, 'cause he's a demographer, which means, you know, demographics, people, generations, time. And as they say, demography is destiny. It's what's happening with
the people is the future. So Harry, welcome. Always want to hear your
points of view because, you know, we both agreed
to one is not necessary. (Harry laughs) So Harry, welcome to the show, thank you. - Yeah, nice to be back. - Thanks. So what are you talking about today? I mean, I have a lot of questions for you because it is about solutions. I think people are finally waking up that something might be wrong. I mean... - Yeah, yeah, you know, I mean, by my demographic analysis, the greatest boom in history, which when I was predicting
this in the '80s, people thought I was crazy, that the US could do so well. They thought that Japan and Asia was gonna take over the world. I said no, that we still have a giant, one of the best baby booms
in history come along, and they're gonna spend
and earn a lot of money, and we're gonna have the
greatest boom in history from 1983 to 2007. And then 2008, of course, it did go down, and I predicted that 20-some
years before it happened, okay. But forget that. That caused a shock to the economy. And then governments have been
printing money ever since. Now, now, to print money for a year to overcome a strong
downturn like 2008, '09, oh, I'd agree with that. One year of money printing. To be printing money 13, 14 years and escalating and printing
and fiscal stimulus combined after COVID for two years, 10 trillion years, half the GDP, is insanity! So this shows how crazy
things have gotten. Governments, we should have had, my forecast, all the way back to the '80s, when I started, with my generation cycles
and technology cycles every 45 years, the generation are more like 38, 39, we had the greatest boom in history, but it would slow after 2007 and not come back with the Millennials until about 2023, 24. Well, what we have now is we have the greatest bubble in history because governments fought
the slow-down after 2008, which was very serious and would have been more serious and should have lasted into 2010, much like the '29 to '32 collapse, they just bubbled up financial assets. They haven't changed, you know, incomes and stuff, they bubbled up financial assets, which means the rich, which were already getting richer in the greatest bubble boom in history, got even richer, and everyday people are still struggling, and now we have an economy, and I've been warning for years, I don't know exactly what's gonna happen, but it's happening now, you can't do this forever. You can't just print money and grow an economy past its fundamentals of when, what I study better than I
think anybody in the world, when the people earn and spend
money over their life cycle. What's the life cycle of people and how do generations, particularly the largest in history, at least the largest in 250 years, the Baby Boom generation, affect that boom and bust, and we are still in the bust
wake of the Baby Boom's peak into 2023, 24 before we can grow through natural causes and I see that this
government printing scheme is now failing, despite printing more and more, failing anyway, 'cause you can't do this forever, and it's gonna collapse, which is just in time for us
to balance out the economy so we can grow again with
the Millennial generation from 2024 forward. So I'm happy to see this collapse. I'm happy to see a downturn, dammit. We should have had a bigger
one in 2008, nine, and ten, and got rid of most of this bad debt. Now we have more bad debt than ever. We're gonna get rid of
it in the next few years, it's gonna be painful. - So Harry, my question
for you is because, you know, my definition of intelligence is if you agree with me, you're intelligent, if you disagree with me,
you're unintelligent, so you and I agree on
the causes and symptoms and what's happening. We just disagree... - And now, we've spoken a few couple, not many people agree with us even though we have the
most common sense approach. I mean, it's not, like, factual, it's common sense, you can't just grow by
printing money out of thin air. I mean, how common sense
can it be than that? We've been printing money since 2009. - Harry, tell us how you really feel. (all laugh) - This is insanity! You know what, you know what? Who are the most insane
people in the world? People who get high. Okay. It doesn't matter whether it's
heroin or crack or alcohol, people get high and then
they do stupid stuff because their brains stopped working. - Harry, Harry, Harry, Harry. - The whole world is high on
non-stop stimulus since 2009 and this will not end well. - Harry. We agree, we just come up with
solutions for this, again, Harry and I agree on the causes of it. Not that we disagree, we have different solutions to it, and our solutions are different because our skill,
background, and education, things like this. And to back up what Harry says, I won't mention his name, but he puts on Freedom Fest, I'm banned from that place. Because you know why? Because I went up there
and I had a book called "Rich Dad's Prophecy," and I was predicting why the bigger crash was following 2008. And this freedom-loving
promoter of Freedom Fest banned me from it because how dare you say that? The stock market always goes up! I went, I don't know what
the heck you're doing here, but you must be smoking something. - Or you're going around
from late '29 to '42, when it went down lower and lower and did not get back to even until 1953, 25 years later! So that's called smoking crack. (all talking at once) - So Harry, at that point
on the stock market, you said the first wave of this
downturn of the stock market is already happening? - Yeah. No, I think it already just happened, we're bouncing out of that. It's not that strong a bounce, by the way. I don't think it's gonna
last past this month, if it has not already peaked. So now, the proof of my concept, and I think Robert's here, obviously, if we see another wave down, which would be the logical thing, forget everything we're saying, I'm just looking as a stock chartist, we have this first crash, a tepid bounce, and we have another one
of the same magnitude, we're gonna see 7350,
you know, on the NASDAC, down more than 50% by late this year and early next year and then people are gonna know
something is really wrong. - So Harry, Harry, this is my question, I
mean, we agree on all that, you know, I wrote this book here, "Who Stole My Pension?" And that's for the Baby Boomers because we were the boom generation, 1974 the government passed ERISA, which became the 401K, which is the biggest
Ponzi scheme I ever saw, and now they're pulling the rug out from all the Baby Boomers, and I'm sure your numbers
are gonna be very accurate 'cause you are very accurate
in your predictions, so the Baby Boomers are toast. So they were the boom, now they're the bust. And hold on, hold on, hold on, Harry, how come people don't know this? What blocks them from knowing? - Just normal you believe
what you wanna believe 'cause you want to believe this. The Baby Boom did cause, and I was the first one to say it, and it took me to the mid-age, I didn't get it in 1982 for it, mid-age is see, this
generation's gonna go under, their peak spending cycle
all the way into 2007, greatest boom in history, made the '50s and '60s Bob Hope generation look like nothing, but then it's gonna crash. Okay so, that's the problem now. It did crash, and the bigger problem is government said, well, we're not gonna let it crash. And I'm like, who the hell are you? Who are you to think
a bunch of politicians that never did anything
for a living, most of you, and say, oh, we're just
not gonna let the economy do what the economy will do to correct an imbalance of over-investment and bubbles and financial assets and bring 'em down to
normal so we can grow again. They're fighting it. - Okay, okay, good. So this is the book, "Prophecy," it was after 2008. It said the biggest crash was coming, it's here now. And the question, again... - And they're still fighting it, and it's still gonna happen anyway. - Well, why... - They're worried about it, it's gonna get worse than people think, even now when it's finally
starting to go down, despite endless government spending. - I understand. So my question, again, is... - I'm talking to your audience,
not you, Robert, okay. I know you understand. - Why don't people
listen to idiots like us? (Robert laughs) Why do they believe these guys? Like, you know, have you
heard of "The Kramer Factor," Jim Kramer? Whatever Kramer predicts,
he goes short on his... - I can't even watch this guy! He's a smart idiot. He just entertains.
(Robert laughs) He has nothing to do with the truth. All I do is research
what happens in history, and what causes things and what doesn't, and that's the truth. And you do not get a bubble like this, there has been no bubble ever at any time in all of history that has not burst badly
and rapidly when it does and it's already started and people are still in denial, including stupid Kramer. (Robert and Kim laugh) He's an idiot! Does he not look like an idiot? Does he act like an idiot? Well, he quacks like a duck, he's a duck. - Harry, Harry, my question to you is is one of the problems is
people choose the wrong profit? - Well, no, they choose
what they wanna hear. If you're in a boom and you're invested in the boom, I mean, everyday people
didn't used to have so much money in stocks, it was more in real estate. And real estate does not
go down like stocks do. Real estate is more stable
even when it goes down. And everybody now has to root
for this thing to keep going, and so they'll listen
to the people that say oh, no, don't worry about this, don't worry about debt levels, don't worry about demographics declining, which they're declining
at the speed of light in all developed countries in the world. Somehow the government
will bring us out of this. - So Kim, Kim, Kim, we've got, hey, Harry, we're the new age men, we're gonna give them... - Yeah. We're not gonna be listened
to until we're right and then it'll be too late. That's my problem. - I got two comments and
to your point, Harry, of course if you're invested
heavy in the stock market, you only wanna hear
that the stock market's gonna keep going up. That's what you're gonna pay attention to. My question is then on the demographics of the Baby Boomers, they went at their peak in 2007, what's the impact on Millennials? Are they gonna have...? - The Millennials bring us
up through natural causes instead of printing money from 2024, and I'm very precise about this. I said from the beginning
the Baby Boom thing was gonna peak in late 2007. I said that in the '80s. That's how predictable people earning and spending money as they age are in generational surges and the Baby Boom was a big surge, so of course a great boom. We've been down ever since then, the Millennials do not bring
the upward natural momentum until 2024 and they will peak by 2037, much shorter boom than the Baby Boomers. - So what was it, Boomers were, like, '50, I mean, '46 to '64 were the Boom generation. Plus there was a Gen X behind us. - Yeah, okay. Let me be more precise. First turned up noticeably
from 1937 into '61. That's the rising Baby Boom, which on a lag, predictable, quantifiable
lag for peak spending at '46, moving towards '47, would have given us a peak in late 2007. I've been preaching that since the '80s. People back then would
say, "Harry, you're crazy. The US is done. Asia's taking over. Japanese make us look like idiots." You know? And I'm like, yeah, yeah, they're growing, and they're gonna grow longer, but we still have the greatest
baby boom in the world and we're gonna have the greatest
boom in history until 2007 and then it's gonna collapse. - Who is Gen X, and what's
their challenge now? 'Cause that's a large generation too. - Gen X is the declining birth rates from 1961 into '73 to '75 that caused the slow down from 2008, still into 2022, 23, before the Millennials, born after them, take it up, and even the Millennials,
here's the important point, and nobody gets this, okay? Even the Millennials, with their spending power
as a smaller generation, less long in birth, only take us back to where
the Baby Boomers took us. We only get back to even, adjusted for rising productivity. We will never see a boom like
1983 to 2007 again in the US, and the most of the
developed world will never, and Europe's already behind us. - Okay. - [Harry] That's the truth. - So my question is what's
gonna happen to Gen X? 'Cause they're the sandwich, they're sandwiched right now. They're the spread. - Well, they're causing the slow down, but they kind of benefit 'cause when asset prices go down, eventually, which they aren't yet, when they do finally crash, they're going to be able to invest at more reasonable prices again and be able to invest and return. I tell anybody right now in the markets, whether it be bond markets at the lowest interest rates ever, long-term, or stock markets,
the highest valuation, if you invest today, even with no predictions
of up and down economy, you're likely to make, you know, a couple percent a year
for the rest of your life. You're not going to be
able to retire profitably until the market's come down to reality and you can invest at
fair asset prices again across the board. - Now, let Kim ask, give her a breath here
before we go to break, so Kim, any final thoughts
or things you wanna say? - I wanna go back to the
Millennial generation because on the demographic side because I see, okay so, you know, so much has changed in the economy, people aren't going to work in their office building anymore, they're working from home, Millennials don't seem
to be having the income that Baby Boomers had, they seem to have a different work ethic. Does that play into the
cycles of earning money, spending money, all of that? - Ask me how long I've
been working at home. It's 1989, okay? This is a new trend everywhere, it's a good trend. People don't have to spend an hour or two commuting everyday and sitting in the car, it's only more productive, okay? It's just that the
Millennials are causing, with less spending than the Baby Boomers who already peaked at
age 46 to 47 before them, they're causing a slow down, and instead of governments
helping to restructure debt, we've got tons of bad debt
now from the great boom from '83 to 2007 that needs to be restructured, they're encouraging people to
keep that bad debt in place and not to re-invest in
new industries and stuff, they're doing all the wrong things because they don't want
to have a recession. You know what a recession is to me? Sleep. Try not sleeping for three days and not become a crazy person. It's already proven. Three to five days no sleep, you'll become a crazy person. We have to grow and expand all the innovations of the past and we have to slow again and restructure and cut out losing
companies and losing things and re-invest in the future and governments are interrupting the free market capitalist system that has made us the richest
and the greatest advance since the late 1700s in all of history because they don't have a damn recession! - You need to take some time off, Harry. Harry, you need a break. Harry, you need to take three days off. Anyway. (Robert laughs)
- I'm telling you, I'm astounded. The stupidest, this will go down as the
stupidest thing in all of history, greatest boom in history, and just when it needs to restructure, they screw it up so we
can never grow again because you never restructure bad debt. - Okay, Harry. Take a break, my friend. We're gonna go to solution because you've been talking about the problem. When we come back, we'll be going more into the solution because Harry's solution is
different than my solution and different than Kim's solution. We'll be right back. (rock music) - [Announcer] On the show, Robert stresses the importance of investing in assets
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"Rich Dad Radio Show," the good news and bad news about money. And today we have one
of the leading experts, I mean, he's one of the most
accurate forecasters I've seen because his expertise is demographics and there's a saying in
any kind of marketing or things like this, demography is destiny. So when you watch what the
demographics are doing, you can almost predict the future. So Harry's work is extremely brilliant, this great boom I had, and he's attacked like I'm attacked because we go counter
to the popular culture of bullshit in markets. And so, we got through the problem of a lot of mismanagement of debt and printing money to solve
problems and all this, and we're now in a triple bubble. We have a real estate bubble, stock market bubble, and bond bubble. And every time Harry speaks, he says the solution is
treasuries and bonds and all this. And FYI, I don't own any paper asserts, I don't have any stocks, bonds, mutual funds, ETFs. And the reason is being entrepreneurs, we don't need them. We can create our own assets. And when we talk about real estate, we're talking about income
producing real estate, not commercial, and not residential. You know, I'm not gambling on my house like the Baby Boomers are. So every time Harry talks
about the bond market, I wanna stop and ask him what it is. So here we are. This is my opportunity to ask Harry a very important question, why are you excited about, well, not excited about, why are you confident
in bonds, is the thing? - Okay. What happens, so, all of this stimulus on top of the greatest demographic boom in history, which did start to fail, so all this stimulus throws
money into the economy, what do governments do with this stimulus? They buy financial assets. They start with bonds, but the more money goes to bonds, it will trickle into higher
value stocks and real estate 'cause that's where the returns are. So what we have now, and I got a number on this, it's close to $600 trillion in financial assets globally. Okay. 600 trillion, that's about
seven times global GDP at 95 trillion, and normally financial
assets are a premium, two, maybe three times. So the biggest bubble in the
world is all financial assets, even bonds. And when you have a crash like this when these financial
assets start to crumble, the money has to go somewhere, it goes into the safest areas. So it is the income producing real estate, multi family mostly, and it is the treasury bonds, the highest quality government bonds, if the US government
can print enough money to keep a dumb bubble going, it can certainly print money
to pay their bonds off, the treasury bonds, okay? You don't have to worry about a default on 30 or 10 year treasury bonds. And again, I go back and say okay, let's look at 2008. When I look at the 2008 crisis, that was like 1929 to '30 coming in, except this time massive stimulus, which they didn't do back then, so they come out of it, okay. But that's when you see things go down, financial assets go down, flirting with deflation, this time we're gonna deflate more because they tried to pump it up and it's failing anyway, so financial assets keep falling. So the money has to go somewhere, so where it goes, it goes into the safest bonds and the highest quality real estate, which is the people, again, real estate's gotten just
as overvalued as well, the people who are renting real estate, multi family, to people who will need it more than ever, even people who would rather buy, can't buy, in a bad market,
and hard to get loans, it's the safe areas, it's the US treasury bonds which is the best bonds in the world. Other government bonds are good. Nothing is gonna beat
a 30 year treasury bond and nothing's gonna beat
in the real estate area multi family rental real estate 'cause people who are thinking of buying and it's overpriced, and then they see the prices fall, they're getting more scared, so renting will... - So Harry, a big distinction is, you know, there's this thing call
junk bonds and this bond and corporate bonds and all that, so you're saying government backed, like, the US government... - [Harry] Yes, yes. Triple A corporate, and in the world even, who's the best house
in a bad neighborhood? Is Europe is in trouble? Yes. Has Japan been in trouble forever? Yes. Okay? The US is still the best
house in a bad neighborhood. So our bonds went up in 2008 prices 45%, treasury bonds, 30 in treasury bonds, they're gonna go up more
than that this time. So you go to the safest places, again, where can you get predictable rentals even in bad times from real estate, and that's from apartments
and multi family, and where are the best bonds that will be paid no matter what, when all financial assets have to go, now here's my number, from 600 trillion worldwide, they're gonna have to come back down to about 250 to 300 trillion. Now, think about this. Globally, three times global GDP at 95, $300 trillion, give or take, 250, disappears in financial assets and doesn't come back for a long time. That's the big news in
the next coming years. So as long as you're protected from that in the right real estate
and in the right bonds, the highest quality, longest term. If I could buy one thing, it would be a 30 year treasury bond. - Okay, US government. - US, not Tanzania. (Robert and Kim laugh) Not even Europe. Europe has much worse demographics, it's already been slower than us. US as a developed country's
gonna come out of this after a damn near short-term
depression the best and our Millennial generation, Europe doesn't have one by the way, okay, it's gonna be the best
in the developed world. So we come out of this better and our bonds, our US treasury bonds, 30 year treasury bonds would be my number one recommendation right now. And if not that, you buy ZROZ, Z-R-O-Z, which an ETF that balances 20 and 30 and leans towards the 30, so 25 year average. - Would you give that, we don't make recommendations, if you did, what do you think is the best ETF? - ZROZ, Z-R-O-Z, is a 25 year average, so it's a blend of 10 and
30 year treasury bonds, they lean towards the 30 TLT is about 50-50, okay? So the ZROZ, Z-R-O-Z, ETF will go up about 50% faster than the TLT and the TLT has already done very well since this crisis set in. It's possible it will do much
better when we get it to work. In 2008, the worst of it was in late 2008, TLT and ZROZ went to the moon. - Thank you, that clarifies it. 'Cause in my mind, I still remember junk
bonds and all that stuff. - Oh, junk bonds. Junk bonds, so the highest
risk bonds go down the most, more like stocks, and the highest quality,
like 30 year treasury bonds, go up the most as the safe haven, and gold, which did well in the early parts of 2008, went down 40 to 45% in the latest stages. So gold was not the worst place to be, but in the end, it went
down with everything else. So gold, I'd rather have gold than anything but these treasury bonds. - Right. You said something, why doesn't Europe have a Millennial? What happened there? - Because they're older, they've been around longer, they've been richer longer, and people who are rich have fewer kids. Poor people have more kids and rich people have fewer. You know that, you're Rich Dad guy. - I understand that. But I didn't know Europe... - We should promote rich
people having more kids, but the natural propensity, people that have a life say
more kids ruins that life and it's better to have
two kids and be done, poor people just keep having kids. - [Kim] And, you know, to your point... - They have more. - To your point about multi family, it's exactly what we're seeing, 'cause we do have a lot
of multi family rents. Rents are going up, demand for apartments are going up. - If you have something
where the income only goes up when all stocks and
earnings are going down, is that not attractive? Of course it is. - Very attractive. And I have a question, and I don't understand this, so, I was told recently that the yield on short-term bonds is actually greater than long-term bonds, does that make any sense? - Yeah, and it should be the opposite. Long-term, you're taking greater risk, so it should be higher. But when people see a downturn
and deflation in prices and inflation going down and maybe going negative, into deflation, then that's why those
yields respond differently. That's a short-term phenomenon. And what I wanna do now, and the biggest thing I get is people say, "Harry, you're recommending
30 year treasury bonds." I'm not actually recommending them for the next 20, 30 years. No! They're for the crash. They're the safe haven in the crash. - Okay.
- More than gold, way better than gold. And when the crash happens, I don't want to hold
30 year treasury bonds at one to two percent yields or zero, I wanna get back into the
best part of the world, and it's not gonna be
North America anymore, it's gonna be better than Europe, but Asia is gonna be
better than North America and it continues to be, that's simple demographics. There's nothing simpler
than demographics than that. We're better than Europe
in the developed world, and as things move forward, all the growth is gonna be in Asia, East Asia, going towards India, which after I die, will be the richest, greatest,
largest country in the world. After I die, so I'm not gonna get to see that. Not gonna be able to claim that. - Well, you never know, Harry.
- If you put it in writing, but you got it in writing, so that's good. - I got it in writing, yeah.
- Yeah. - And my grandchildren will realize I was smarter than they thought I was. - Your bond play is just
kind of a short-term, for the crash. - Oh, it's totally short-term. - And you put it in other assets. - And again, the problem is most people
are recommending gold and I'm like, look at 2008, gold kind of held up early and then look at, ooh, in the worst, you know, in the third
and fourth quarters, gold went down 40, 45%. Not the worst place to
be in the first fight. But it was not the safe haven. The treasury bonds went up the opposite, 40, 45%. - Right. I'm glad I asked you because I was, you know, I don't have any bonds, so, I look at an apartment house as a bond, if you know what I mean. - It is, yeah, it's a
high yield investment. I agree with you. And to state, again, people are only gonna
trade down to multi family, not up to expensive houses
that are overvalued. So none of that, that's the defensive part
of the real estate market. I'm saying the highest
quality government bonds, particularly US treasury, is the best defense in a crash. - That's fantastic, fantastic, fantastic distinctions that we don't have. I've got one more question though. When interest rates are coming down, the prices of bonds were going up, or something like that? - Yeah, yeah.
- Why is that? - Because if you locked in on, like, say, a five percent 30 year treasury bond and yield's now moved down to two percent 'cause of lower inflation, oh, who's worth more? Your five percent 30 year treasury bond, or the new two percent? Your 30 year is worth a lot more now. So bonds appreciate when
inflation comes down, especially long, the highest quality, long-term. Now, a junk bond will not act the same. It'll say oh, inflation's coming down, but defaultness is going up and I'm a junk bond so I got defaultness. So that's the difference. In a crash like this, a deflationary crash, it is the highest quality US government or triple A corporate bonds, which are the best, and between those two, why would I choose a triple A corporate when I can get a 30 year treasury bond? Which they will not default on even if they have to print money. - Going back in history, wasn't Ivan Belsky, wasn't
he the junk bond king or something like that, or one of those characters? - I'm not an expert on Ivan Belsky, you know, I know his name. But you know, I mean, it is interesting to study other places that have had, you know,
inflation and crashes. I mean, I keep seeing people say this is gonna turn into
hyper-inflation, no. It's not gonna take much more inflation, it's already crimping our economy, and bonds and stuff, and that's already gonna
lead to a downturn. I'm telling you, when we see this downturn, I think we're already into it, it's already starting now, inflation will disappear at 9.1%, or 10% if it gets to hide, and never appear in the
rest of our lifetime. That's the forecast.
- [Robert] Wow. - Never see inflation above a few percent for the rest of all of our lifetimes, even if you're 20 years old today. That's my forecast. Because inflation was the major Baby Boom, in the great expense, and that caused a huge inflation, and you know what follows huge inflation? The disinflation and the boom that follows from that generation that caused it and blah, blah, blah, blah, blah. We're not gonna ever worry about inflation in the developed world again. Hey, maybe Zimbabwe, maybe Africa, but we will never, high inflation will never
be a topic after this. - That's fantastic insight.
- Prediction. - Fantastic insight.
- I stand by that after I die. (Robert laughs) - So I gotta ask you about Bitcoin. What's your take on Bitcoin? Long-term, short-term. - Okay. Very simple also. I compare the cryptocurrencies, Bitcoin's just like
the Amazon of it, okay, the new dot com retailers
that were the rave, they were the rave only the
last part of the '90s bubble, and were the epitome of it. Amazon led that bubble and crashed 95%. - [Robert] Wow. - Before it then went from 136 to six, and then to 3500 in the next boom. That's how I see crypto. It's the next big thing. I didn't get it myself, Robert and Kim, until at my own conference
a guy was thinking, he said he defined as crypto as the digitization of all
financial assets and money and I'm like, what's bigger
than GDP six, seven times, all the financial assets in the world? And I'm like, oh! This is a big deal. This the next big thing. So what happens, the dot coms and Amazon is the epitome, bubbled in the late '90s and that bubble crashed 95, 96%. People thought they were dead forever. And then of course had the
greatest boom in history. I see Bitcoin and cryptocurrencies, and there's 40,000 coins. Think of coins as an
IPO with no cost, okay? That's the thing. - We lost Harry's connection, Kim and I are still here. But his information is priceless. Like I said, I respect his demography, he's very, very accurate
in his predictions. So anything Harry Dent
writes about, talks about, understand. And I just never understood bonds because I don't have any paper assets, stocks, bonds, mutual funds, ETFs. And the only stocks,
bonds, mutual funds, ETFs are the ones we make ourselves, because we're entrepreneurs. We don't need to buy somebody else's. Any comments, Kim? - Well, no, I think it's very interesting especially what he was saying about bonds. And the big ah-ha for me is, like, 'cause I never understood why would you be in a 30 year investment that's paying, you know,
one or two percent? And then he said, no, it's
your hedge against the crash, when the crash comes. That's where you wanna store your wealth, or store your money, and then as it eases up, then you get out of that and
you invest in other things. So of course I like what he
says about multi family housing because that's what we're
experiencing right now, rents are going through the roof, and where we have our properties. So I thought it's good. I wanted to hear a little
bit more about Bitcoin. I know he also has, Harry also talks a lot about gold and he sees a big downturn in gold, and then an upturn. So I just, I love the demographics because it's based on facts. It's not based on opinion, it's not based on some who-did-do theory, it's based on the demographic facts. So that's why I appreciate
Harry and his input. - He's a brilliant, brilliant, brilliant, brilliant researcher. Anyway, one more thing about booms and busts, what Harry's saying about the 30 year is basically you're getting
ready to pick up more product when whatever it is, so it's the same as this. We don't buy real estate when it's high. We buy it when it's low. And so that's what Harry
doesn't say is that gold is coming down, it's about 1700. Well, you and I have been
buying it since it was 50. - [Kim] Right. - And then in 2000, it was 300. So when you look at the macro
of the longer term on it, while Amazon was coming down, gold was also coming down, so you and I had backed
up the truck on gold. And today it's worth 1700, if it goes to 2000, good. The point here is that. It's when you buy, not when you sell. And the reason I think a
lot of real estate guys are gonna get crushed are the flippers, because they still expect the
price of real estate to go up so they're flipping the family home, or they're taking out second
mortgages on their home, because the so-called value
of the property went up. But real estate is also supply and demand. - [Kim] Yes.
- You know, there's a huge, there's a shortfall of
real estate in America, demand is going up, so that's why residential is
good as income's come down. I mean, apartment houses are great 'cause people are backing
into apartment houses. - Yeah. And you also have to look
at some of the factors, because we've just experienced
this on one property, supply and demand of supplies. So if some people are out there building and now they're getting caught because the supplies have
gone up so much in cost, plus interest rates have
gone up in so much in cost, so you really need to look
at so many different factors when you're looking at buying real estate and what you're gonna do with it. - Right. And that's called timing. Watching the ups and downs
and markets right there. - [Harry] Can you hear me? - Yeah, yeah.
- Yes. - [Harry] Our electricity
went totally out here. I am in Puerto Rico, by the way, one of the disadvantages. (all laugh) Although the tax, the four percent tax
rates makes up for it. But yeah, we totally went out, we're totally out of electricity. - [Sara] Harry, can you tell our audience how they can learn, you know, learn more information from you? Is it harrydent.com, is that the best place? - [Harry] Yes, harrydent.com. What they do, we have a free newsletter, which in other words, I and my partner, Rodney Johnson, write a one-page article
every week to these people until they decide we're worth listening to and getting on our newsletter. So it's a free newsletter
at harrydent.com. Free weekly newsletter. - The price is good. - Yes, it is.
- [Harry] Yeah. - And so, Harry, any final words for our audience? - [Harry] You know, my thing
is take this seriously. You know, we've had so
many corrections now and we've had this boom go since 1982 now, and even when it should
have gotten a lot worse in the last decade, they propped it up. Be serious, you cannot have something-for-nothing
economics work forever and the fact that after the $10 trillion in combined fiscal and monetary stimulus in
two years after COVID, we are already falling
in a recession again, if that doesn't tell
you something's wrong, you better wake up. This is not going to be a recession, it's going to be a mini-depression that'll take a couple years to work out and if it's allowed to work out, and Robert asked my my solution, my solution is let the
economy wash out all this debt and bad companies. More zombie companies than ever, highest levels of debt
levels and bad debt ever, we have to wash this out or even with the Millennial
generation's demographics, we're gonna at best crawl
out of this instead of rise. So I wanna see a downturn that restructures debt. And what did I do early in my career? I was a consultant to Fortune
100 companies that's failing and I decided they sucked, so I became a consultant to new ventures that are always failing, that's what they do for a living, and in a turnaround you have to cut costs, cut debt, and reposition for the future, and everything the government's doing is keeping us from doing that so that we can actually
enjoy the next boom when the Millennials drive us up. So I'm rooting for this to go down harder, faster, sooner so we can take a big restructuring of debt and zombie companies. Zombie companies are off the chart, debt's off the chart, that's the problem. Demographics are a problem, but only until 2024, then demographics turn in our favor. - Okay, so when we come back, we'll have a final word. But I wanna thank Harry Dent, too bad he got cut off. Well, I think we got the message from him. Guy's a brilliant, brilliant,
brilliant demographer, he understands these generations. I didn't know that Europe didn't have a Millennial generation. - [Kim] I didn't know that either. - No. And the causes, when you're wealthy, you don't have kids. So that should be a lesson out there to all you future kid-bearers. When we come back, we'll have a final word from Rich Dad. (rock music) Welcome back, Robert Kiyosaki, "Rich Dad Radio Show." Kim's in South Carolina
and I'm in Scottsdale and here with Sara, and we're in the office. So we're gonna do a final wrap up. One thing is Harry
recommended those bond things. Rich Dad, we don't endorse
or recommend any investment, we're a purely, we do our best, we're a purely informational, educational and what you do is up to you. So any comments there, Sara? - [Sara] Yeah, the biggest
thing that I took away, it just goes back to demographics, which we've heard, you know, Harry talk about in other contexts. But this was really interesting for me about Gen X and their
declining birth rate, and they'll actually be the beneficiary of this declining birth rate because the economy's slowed down, so they're gonna be at the
prime time to buy these assets when they're at a low price. And so, really, that's
optimistic for my generation. - Are you Gen X? - [Sara] I am Gen X. - Okay.
- [Sara] Yep, yep. So those Millennials, though, it sounds like they were a
little bit screwed but... (Sara laughs) But so I'll take advantage. - Well, and you know, Harry did say, you know, look, of course he's talking about
the stock market coming down and a lot of things coming down, I mean, what we never did talk about is if you are prepared and know what to do and when everything goes on sale, it's gonna be a huge opportunity if you know how to buy and buy right. So as you said, Robert, it's always about when you buy. And this will be a buying
opportunity for a lot of people. - That's what Harry was saying, he goes to 30 years as an interim step, US bonds. There's lots of different types of bonds. Bond market is much bigger
than the stock market, that's why it's so dangerous. You know, if it goes up and down, well, the economy goes up and
down with the bond market. So, that's why we don't
recommend flipping houses 'cause right now, that's what caught a lot
of people in 2005, 2006 and then 2008 hit and their
flip flopped, you know. So you don't find me flipping. So with that said, final words, Sara? - [Sara] No, just appreciated
the lively conversation, as always. - What's Harry's information, contact? - [Sara] His website's harrydent.com. He has a free weekly newsletter. - "The Price is Right." And he's worth listening to, the guy's brilliant at
demographics and economy and bonds and those things. - [Sara] Yeah. - Final words, Kim? - No, I appreciated this interview a lot and I think the best
finish was his words were, Harry said, you know, you gotta pay attention
to what's going on here, you might wanna be patient, but you really need to
look at what's going on, get yourself educated, and understand where this market is going because, as he said, it's probably not gonna be a soft landing. - Right. And with real estate, you know, it's demography against destiny, is that if a place has
jobs, real estate's strong. But if a major, you know, company leaves, real estate crashes. So real estate's not just real estate, you gotta know your
demography, your locations, where it's going. But the biggest thing where
Kim and I are investing is in the southwest United States, like Texas and Arizona, is that there's a short
supply of real estate. They didn't build enough. Now, if you're into
commercial real estate, like shopping centers
and office buildings, you might be in serious trouble. So real estate's not just real estate, you still have to know what you're doing. So once again, thanks to Harry Dent. His conversations with
me are always exciting. We generally agree
except on the solutions. Thank you for listening to
"The Rich Dad Radio Show." (rock music)
