The author of the bestseller ‘Rich Dad Poor Dad,’ Robert Kiyosaki, has predicted a major crash in the financial, crypto, and commodity market. The famed author and investor tweeted claims the United States government was pushing false inflation. He noted that inflation would lead to panic. As such, he predicts a further crash of the market.
Kiyosaki tells his followers that they shouldn’t be alarmed but take the opportunity it presents to invest in precious metals and Bitcoin. He assures that following the crash, the markets would immediately pick up again. The crypto market cap sits at around $2.23 trillion, dropping around 3.34% in the last 24 hours. Bitcoin remains below the $50k price point. The market cap of the primary cryptocurrency sits around $900 billion.
Inflation At 40 Year High
The United States yesterday released the Consumer Price Index (CPI). The CPI showed that inflation was close to 4-decade highs at 6.8%. When the news hit, many markets dipped except the cryptocurrency market, which showed some resolve and seemed to be making some gains. Most of those gains have been lost today, though. The United States government has made commitments to manage the economic harms and inflation.
Experts have long since expected the spike in inflation. Countries have failed to embark on tapering with the pandemic making things worse. Many have been forced to keep printing more money to ease the challenges faced by citizens during a series of lockdowns. The United States signed a $1.2 trillion infrastructure bill into law last month.
The price of goods and services has continued to surge steadily for half a year in the United States. The increasing prices cut across many sectors. Inflation has been on a near 1% rise since October.
Most likely, the most alarming price hike is in gas. The commodity rose close to 60% in November alone. The price hike is the largest in more than 40 years. Before the data release, the President, Joe Biden, stated that the rate did not reflect the current economic reality.
Biden Administration Response And Republican Criticism
Biden disclosed that the report failed to factor in the coming price drops in the weeks ahead, citing the automobile sector. Many detractors of the present administration have consistently pointed at rising inflation as a sign of the administration’s failure. The Biden administration has, however, repeated that the inflation spike is a result of the COVID outbreak and will not last long.
The Federal Reserve bank made some efforts to curb inflation last month. It stopped certain stimulus programs that saw increasing cash in circulation. The Fed, however, remains reluctant to increase rates which is the most significant step it can take to rein in prices.
Price hikes in commodities never serve the present administration. Even though inflation is never as simple as bad policies by an administration, they still take a lot of the fall for it. Senate Republican leader, Mitch McConnell, took to Twitter to call out Democrats. He said the party’s response to rising inflation was to push for another welfarist bill. The Senator said this concerning an almost $2 trillion bill in talks to tackle climate and social issues.