Robert Kiyosaki argues that inflation makes the poor and middle class poorer but benefits the rich
He argues that this erodes the cash savings of lower-income groups but increases the holdings of alternative assets by the wealthy.
Kiyosaki thinks inflation is increasing the wealth gap due to Fed policies.
Robert Kiyosaki, author of Rich Dad, Poor Dad, claimed in a recent tweet that inflation benefits the rich while impoverishing low-income groups.
Kiyosaki notes that inflation erodes the purchasing power of dollar savings in the hands of the poor and middle class who depend on these funds. Meanwhile, the rich are protected by investing in alternative assets such as gold, silver and bitcoin instead of cash.
The author argues that inflation widens the wealth gap by devaluing the US dollar, for which most Americans work and hold money. But inflation can also raise the prices of scarce real assets that wealthy investors hold as protection.
Kiyosaki has frequently criticized the Fed's policies, such as quantitative easing, on the grounds that they harm fixed-income savers and retirees. He advocates alternatives such as precious metals and cryptocurrency to weather dollar erosion.
While the effects of inflation vary depending on individual financial behavior, the tweet highlights the widespread perception that loose Fed policy predominantly penalizes low-income groups without assets.
Kiyosaki expressed strong support for Bitcoin and cryptocurrencies, seeing Bitcoin as a hedge against the traditional financial system and a potential store of value in the future. He is of the opinion that the stability of the US dollar is uncertain and cryptocurrencies and precious metals can provide a shield for investors.
Kiyosaki predicts that in the event of a global economic crisis, the price of Bitcoin could reach $100,000, or potentially even $1 million. He invests in Bitcoin since its price is very low and he also invests in Bitcoin along with his gold and silver holdings.
