An Open Letter to Robert Kiyosaki

 

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.

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Financial Literacy: When a Bank Collapses

There has been so much debate about bank bailouts, and most people have nothing more than uninformed, generalized opinions on the subject, usually based on personal philosophies about the proper role of government in our nation’s economy. Bernanke and the Fed have maintained that the bailout was absolutely necessary in order to stop the economy from charging over a cliff. Is this what really happened? Or are the big banks an informal extension of the government already, and the taxpayers are routinely called upon to bail them out due to their poor business judgments? And if the latter is true, then surely such government “protection” creates a moral hazard in that the banks know  no matter how foolhardy or careless they may be,  when push comes to shove their survival is assured, i.e.  Big Business always gets saved by Big Government! Exactly how did the banks, particularly the Big Banks, get in so much trouble? How exactly was this related to the real estate bubble? Get part of the picture in this short video: Financial Literacy: When a Bank Collapses at http://www.youtube.com/watch?v=oG0ry145ymc.

Financial Literacy: Deflation: When an Economy Implodes on Itself

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. 

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Financial Literacy: The Origins of Banking

Financial Literacy: The Origins of Banking

Financial Literacy: The Money Supply and Inflation

Financial Literacy: The Money Supply and Inflation

Financial Literacy: Good Money, Bad Money

Financial Literacy: Good Money, Bad Money

Financial Literacy: How Big is a Trillion?

Financial Literacy: How Big is a Trillion?

Financial Literacy: Your 401K and the Next Stock Market Crash

Financial Literacy: Your 401K and the Next Stock Market Crash

Greenville Cashflow Club Meets Monthly with John Bechtel – Part 1 of 2

Every month, John Bechtel hosts the Greenville Cashflow Club.  Financial Literacy is at the core of discussion, then a board game called Cashflow 101, by Robert Kiyosaki (author of Rich Dad Poor Dad), is played to learn the dynamics of real life money in a safe environment.  All are wecome to attend in casual attire. For more information call John Bechtel at 864-380-3660 or email him at jbechtel@thebechtelgroup.com.

Greenville Cashflow Club Meets Monthly with John Bechtel – Part 2 of 2

Here is part two of the 2 part discussion on Capitalism at the Greenville Cashflow Club.  John Bechtel, with his extraordiary style lays out the complexities of the world economy in a stimulating way.  John always holds the audience’s interest on even the most complex issues with his ability to paint stories and make concepts come alive. 

For more information, you can contact John Bechtel at JBechtel@theBechtelGroup.com or call him at:  864-380-3660.  Ask about the monthly meetings that you are welcome to attend.