Robert Kiyosaki, author of Rich Dad Poor Dad, raised concerns about the stability of the US dollar in a recent tweet. He blamed the dollar's current position on decisions made years ago, the main one being President Nixon's decision to take the dollar off the gold standard in 1971.

Since then, the US dollar has been kept high by government bonds and treasuries, which in his view are like counterfeit money, according to Kiyosaki. The famous author believes that this change has had a lasting impact on the US economy.

Before 1971, the US dollar was pegged to gold and thus had a more stable standard of value than other currencies in circulation. However, President Nixon's decision to stop the convertibility of dollars into gold ended this pegged exchange rate system and turned the dollar into a fiat currency.

As a result, the value of the dollar is now tied to market sentiment and government debt. Kiyosaki condemned the move, noting that it further erodes the value of the dollar and pushes its value down relative to U.S. Treasuries and Bonds.

Kiyosaki sees this shift as a turning point, pointing out that after the Federal Reserve began printing money to pay down debt, the purchasing power of the dollar continued to decline. He said the availability of money in the economy through printing money led to inflation, reducing the value of the national currency and making products and services more expensive.

The case for replacement assets

Kiyosaki notes that inflation makes saving in US dollars increasingly risky. As prices rise, the purchasing power of money decreases and thus the value of money in the sense of savings decreases over time. He claims that conventional savings accounts are not suitable for preserving wealth in this environment.

However, Kiyosaki encourages investors to look for other investment opportunities that are not as affected by inflation. He points out that gold, silver and Bitcoin are much safer to hold for wealth preservation purposes.

For example, gold recently hit a record high, which Kiyosaki says means the precious metal will hold its value much better than the dollar during economic turmoil. Likewise, Bitcoin and other cryptocurrencies are seen as inflation hedges. Kiyosaki recommends diversifying across gold and silver as well as cryptocurrencies to protect against economic collapse.

Kiyosaki is a prominent critic of the US financial system, which he says is built on debt. He also points out that market volatility is also a result of the Federal Reserve continuing to cut interest rates and rising government debt.

Referring to the Great Recession of 2008, Kiyosaki warned that current economic trends could lead to a similar crisis if left unaddressed. Without a drastic change in monetary policy, he said, the U.S. economy could see more volatility.