- Kiyosaki links Moody’s U.S. debt downgrade and policy shifts to rising risk of a 2025 economic crisis.
- Jim Rickards highlights $1.6T student loan market as a potential trigger for wider market instability.
- Monetary roots of current crisis traced to Nixon’s 1971 decision to end the US dollar gold standard.
Financial author Robert Kiyosaki has sounded the alarm about a potential economic crisis in 2025, connecting recent credit rating actions and long-standing US monetary decisions to underlying financial weaknesses.
This warning follows Moody’s Investors Service cutting its outlook on US sovereign debt, highlighting rising budget deficits and renewed concerns about financial system stability. Kiyosaki, best known for his 2013 book Rich Dad’s Prophecy, argued that current events align with predictions he made more than a decade ago.
Moody’s Downgrade Raises Questions on Fiscal Risks
Moody’s recently downgraded its outlook on US government debt, citing increasing fiscal deficits and governance challenges. Kiyosaki described the downgrade as a wake-up call for global investors, calling out what he views as irresponsible use of borrowed funds by the US government.
He warned that these moves could lead to higher interest rates, job losses, and possible failures across the bond and housing markets. Kiyosaki noted that the situation today shows parallels with the economic stresses that preceded the Great Depression.
Historical Patterns Show Growing Bailout Risks
Looking back, Kiyosaki pointed to a pattern of major bailouts shaping the US financial landscape. He cited the 1998 rescue of Long Term Capital Management (LTCM) and the 2008 global response to failing banks as examples. For 2025, both Kiyosaki and commentator Jim Rickards are now raising the prospect that central banks themselves could require rescue measures if current risks spiral.
Rickards, who has long collaborated with Kiyosaki, pointed to the $1.6 trillion US student loan market as a potential trigger for wider market failures. He argues that mounting student debt could lead to broader stress across the financial sector.
Related: Robert Kiyosaki Warns of Financial Collapse: Bitcoin & Silver as Refuge
Monetary Policy Roots Trace Back to End of Gold Standard
Kiyosaki connected today’s monetary risks to the 1971 decision by President Richard Nixon to end the US gold standard, removing tangible backing for the dollar. He believes this created lasting vulnerabilities in the global financial system.
Related: Robert Kiyosaki Sounds Alarm on Global Economy, Champions Bitcoin
Kiyosaki warned that continued reliance on fiat currency and traditional savings vehicles could leave investors exposed if a new crisis develops. He emphasized that government-backed solutions and conventional financial instruments may not offer enough protection in a severe downturn.
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