Rich Dad Poor Dad author Robert Kiyosaki has issued his most dire warning about an impending “global monetary collapse,” urging followers to accumulate Bitcoin, gold, and silver as protection against the “biggest debt bubble in history.”
GLOBAL MONETARY COLLAPSE COMING?
Will you be richer or poorer when biggest debt bubble in history bursts.
I recommend owning gold, silver, and BITCOIN if you want to be richer when the Global Debt Bubble bursts.
BIGGEST LOSERS will be savers of fake fiat money and especially…
— Robert Kiyosaki (@theRealKiyosaki) June 23, 2025
In an X post, the bestselling financial educator declared that the coming collapse will create winners and losers on a large scale, with “biggest losers” being “savers of fake fiat money and especially bonds,” while those holding hard assets will emerge richer.
Kiyosaki’s alarm comes as the U.S. national debt has exploded to $37 trillion, creating what economists describe as an unsustainable fiscal trajectory that threatens America’s global economic dominance.
Leading economists, including Ray Dalio, Ken Rogoff, and Niall Ferguson, have all expressed grave concerns about an impending debt crisis. Ferguson’s research shows that America now spends more on debt service ($1.1 trillion) than on defense ($883.7 billion), a historical pattern that has preceded the decline of every major global power.
This fiscal deterioration occurs as the debt-to-GDP ratio has reached 123%, a level that economists warn could trigger a “debt-induced economic heart attack” if corrective measures aren’t implemented rapidly.
America’s Debt Death Spiral: When Interest Exceeds Defense Spending
The mathematics of America’s debt crisis paints a sobering picture that validates Kiyosaki’s apocalyptic warnings about monetary collapse. The national debt has quadrupled from $10 trillion in 2000 to over $37 trillion today, while showing no signs of sustainable resolution.
The most alarming development is the exponential growth trajectory that has pushed debt service costs above defense spending for the first time in modern history, triggering what economist Niall Ferguson calls “Ferguson’s Law.” This principle states that any great power spending more on debt service than defense risks losing its global dominance.
This fiscal deterioration accelerated dramatically during recent administrations, with debt growing 39% under Trump’s previous term alone.
The structural impossibility of growing out of this debt burden becomes clear when examining the mathematics of compound interest versus realistic GDP growth projections.
We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt.
If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this. pic.twitter.com/lv07wJne1f
— Treasury Secretary Scott Bessent (@SecScottBessent) May 23, 2025
Treasury Secretary Scott Bessent’s optimistic theory that “we can grow our way out of debt” requires sustained economic expansion not seen since the post-World War II boom, yet the World Bank projects U.S. growth declining from 2.8% in 2024 to just 1.4% in 2025.
Meanwhile, the debt-to-GDP ratio is projected to reach 140% by 2029, creating what economists describe as a “death spiral” where increasing debt service crowds out productive government spending on infrastructure, education, and defense.
The consequences extend far beyond abstract fiscal metrics to real-world impacts on American living standards and global competitiveness.
Since COVID-related money printing began, the dollar has lost over 20% of its purchasing power, with food prices up 23% and transportation costs rising 34%. This represents permanent structural inflation that erodes savings and wages.
Interest payments now consume 13% of the federal budget. They are projected to reach $1 trillion annually by 2033, forcing inevitable cuts to Social Security, Medicare, and Medicaid programs that collectively represent nearly $3.2 trillion in annual spending.
This fiscal compression occurs as America faces mounting geopolitical challenges that require increased defense spending, creating an impossible choice between military readiness and fiscal sustainability.
Bitcoin as the Ultimate Hedge Against Monetary Debasement
Kiyosaki’s recommendation to accumulate Bitcoin is more than speculative investment advice; it is rooted in a fundamental understanding of how monetary crises unfold and why scarce assets historically outperform during periods of currency debasement.
Bitcoin’s mathematically enforced supply cap of 21 million coins contrasts starkly with the unlimited money printing that characterizes modern fiat systems, and has reduced its inflation rate over time.
It offers what Coinbase CEO Brian Armstrong describes as a “check and balance” on government deficit spending that could eventually position Bitcoin as the world’s reserve currency if fiscal irresponsibility continues unchecked.
The historical precedent for this monetary transition is compelling, with every major currency collapse throughout history being preceded by unsustainable debt accumulation and attempts to inflate away obligations through money printing.
Venezuela’s debt-to-GDP ratio exploded from a manageable 30% in 1998 to over 300% by 2020, resulting in hyperinflation that made the national currency worthless and forced millions to flee the country.
While America’s reserve currency status temporarily protects it from such a dramatic collapse, the underlying dynamics remain identical. The currency is facing exponential debt growth, declining confidence, and increasing adoption of alternative stores of value.
Bitcoin’s role as a monetary hedge becomes particularly relevant when considering the limited alternatives available to ordinary citizens seeking protection from currency debasement.
Traditional hedges like gold and real estate face regulatory constraints, storage challenges, and potential confiscation risks, while Bitcoin’s decentralized nature and global accessibility make it virtually impossible for governments to restrict or seize.
The cryptocurrency’s performance during recent inflationary periods demonstrates this protective function, with Bitcoin reaching all-time highs as investors seek refuge from deficit spending and monetary expansion.
The institutional adoption wave further validates Bitcoin’s monetary hedge thesis, with MicroStrategy accumulating over 592,000 BTC as a treasury asset and numerous public companies following similar strategies.
In fact, VanEck’s recent analysis suggests that a strategic Bitcoin reserve could offset 18% of U.S. debt by 2049 if the cryptocurrency continues appreciating at historical rates.
This would provide a mathematical pathway for nations to escape debt traps through early Bitcoin adoption.
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