Renowned entrepreneur, investor, and financial educator, Robert Kiyosaki, has issued a stark warning about the dire implications of the plummeting US credit rating.
In a recent tweet, Kiyosaki highlighted the potential for a “crash landing” in the country’s economy, sparking concerns among investors and the public alike. His tweet read, “Sorry for the bad news yet I have been warning for over a year the Fed, Treasury, and big corp CEOs have been smoking fantasy weed. Take care.”
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Fitch Downgrades US Credit Rating
Kiyosaki’s comments come on the heels of a recent US credit rating downgrade from AAA to AA+ by credit rating agency Fitch.
Fitch’s decision to lower the credit rating was primarily driven by concerns over fiscal deterioration and recurring debt ceiling negotiations that threaten the country’s financial stability over the next few years.
The immediate aftermath of Fitch’s downgrade witnessed a notable flight to safety among traders and investors. As the news circulated, there was a perceptible shift away from stocks and toward safer assets such as government bonds and the US dollar.
On the other hand, the yield on the benchmark US Treasury note decreased 2 basis points to 4.03%, while the cost of insuring US sovereign debt against default remained almost unchanged, suggesting investors’ confidence in the downgrade’s long-term implications.
The recent downgrade by Fitch has stirred significant attention and debate. While the downgrade caught many by surprise, it’s important to take a step back and understand the context in which this decision was made.
In May, Fitch announced that it had placed the United States on a “rating watch negative.” This move was not an immediate downgrade but rather an indication that Fitch was closely scrutinizing the US economy and its fiscal trajectory.
Kiyosaki Calls for Awareness and Preparedness
Kiyosaki’s statements serve as a wake-up call for individuals, investors, and policymakers alike. While the exact nature and timing of any potential economic crisis remain uncertain, his message underscores the importance of being informed, prepared, and proactive.
Kiyasoki has previously warned that an interest rate hike by the Federal Reserves would cause havoc to the US economy. He, therefore, advised investors to invest in Bitcoin.
