An Open Letter to Robert Kiyosaki

by johnbechtel on December 23, 2009
in Altruism, Business Opportunity, Capitalism, Economics, Financial Help, Greenville Cashflow Club, Philosophy, Politics, Power of Belief, Rugged individualism, Self Empowerment, Wealth, money

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In case you don’t know, Robert Kiyosaki is the author of the Rich Dad series of books on financial literacy, and he and his beautiful wife Kim are the creators of the board game called Cash Flow, a marvelous financial learning tool for young and old alike. I am a fan of Robert Kiyosaki. I met him and his wife in a bar in Pittsburgh, PA. They are very genuine, down-to-earth, and friendly people. They are for-profit educators, and they clearly have a passion for their subject. And yes, I really believe Robert’s story about his rich dad and his poor dad. I don’t think Rich Dad is a figment of Kiyosaki’s imagination. So I am a believer. I don’t make statements like that very often. I have something to say to Mr. Kiyosaki, a disagreement I want to air with him.

Dear Mr. Kiyosaki:

If you are reading this, you already know we are kindred spirits and I admire what you do and share your commitment to financial education. In a recent article you wrote that some of your best financial advice is to not be average. That comment was the source of considerable outrage on the part of your readers, judging by their comments. Perhaps they wanted your message gift-wrapped in softer language, but I couldn’t agree with you more.

Very few people truly comprehend the mind-numbing reach and power of their government, and its insatiable appetite for their earnings and its religious zeal to dumb them down and control their lives. Therefore they do not understand how much the odds are stacked against them in their endeavor to break free from the rat race. They do not understand that to be average is to have no chance.

Financial Literacy: Deflation: When an Economy Implodes on Itself

by johnbechtel on August 3, 2009
in Business Opportunity, Capitalism, Economics, Financial Help, Financial Independence, Greenville Cashflow Club

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As I have discussed in other posts, every good, service, and commodity has a value, and that value is denominated, or measured in terms of the national currency; in our case the value of anything is measured in dollars. (Go to Billionaires Who Can’t Afford a Loaf of Bread: http://www.youtube.com/watch?v=HGfsQimC0mw) Even money has a value that fluctuates, and there are events that trigger changes in the value of money. Money is measured by it’s purchasing power, and economists spell this with capital letters Purchasing Power (PP). Money by itself has no value; it is only a symbol and a medium of exchange, so the real question is how much of anything can you exchange a dollar for?? I have covered what happens during a period of inflation, and the costs of everything as measured in dollars goes up, which means the value of the dollar (or its purchasing power) goes down. People think they are better off with rising wages, but factoring in the decreased ability of those wages to purchase, they are actually worse off.