Is the ‘biggest market crash’ ever coming in 2016?

(Bugout.news) Best-selling author of Rich Dad, Poor Dad, has warned that because of stock market manipulation, there is likely to be a bigger crash in 2016 than there was in 2007 – when trillions in wealth were lost.

In his 2002 book, Rich Dad’s Prophecy, Robert Kiyosaki predicted that global financial markets and signs would resemble what they do today, and that conditions would be ripe for an economic collapse unparalleled in modern history – and that it would come next year.

“Well, that’s a month from now. I hope that doesn’t come true but if you look at it, China is now going down, Europe is going down, Japan and South America are going down so it looks like 2016 might come true,” Kiyosaki told Rappler.com in Manila at an event to promote his new book, Second Chance: For Your Money, Your Life and Our World.

“In the first 10 years of the 21st century, we’ve had 3 major crashes, each bigger than the 1929 crash that caused the Great Depression. So everything I wrote [before] is now coming true,” he said.

He went onto explain that every time a financial crash happens the Federal Reserve simply cranks up the printing press in order to bolster the market, each time more than the next – like other central banks around the world. That, he says, is eventually setting the market up for a major crash, according to Rappler.

And when it happens, Kiyosaki says, the economic fallout will last decades – until around 2035.

“The underlying economy, the gross domestic product, is weak but the stock market is high,” he said, adding that U.S. unemployment is much higher than the official federal figure.

“(President Barack) Obama says its 5 percent. I say it’s more like 20 percent and the discrepancy is due to the way the government counts unemployment,” said Kiyosaki.

“In truth, the gap between the rich and the poor already shows that the economy has crashed,” he said. “The people making $500,000 in the U.S. are becoming poor so there’s a lot of change needed because the base of the economy is weak.

“The stock market is propped up by Wall Street and the Fed and the government and that’s why it’s a kleptocracy, they’re robbing the poor and the middle classes,” he noted further.

The reason why the monetary system is so unstable, he says, is due to the fact that the U.S. went off the gold standard in 1971 as a policy matter implemented by President Richard M. Nixon.

What’s more, nothing much has changed in terms of the national and global financial structure since the last crash in 2007, despite legislation like “Dodd-Frank.”

The only thing that has changed is that we are now using financial derivatives which Warren Buffett himself has called “weapons of financial destruction,” Kiyosaki pointed out.

In fact, derivatives were behind the housing debt crisis in the US that developed into a global credit crisis, Rappler noted.

“In 2007, there was 700 trillion in derivatives, today there’s 1.4 quadrillion in derivatives. All authorities did was step up the debt to give the false appearance that the economy is strong,” he said.

As Newsmax has also reported, other institutions have also said that 2016 could be bleak. Citibank “has warned that the outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios,” the news site reported.

See also:

Rappler.com

Newsmax