Robert Kiyosaki Reveals His $1.2B Debt 'Sexually Stimulates' Him and Why He Isn't Nervous About It

In an interview with The Iced Coffee Hour, Rich Dad Poor Dad author Robert Kiyosaki revealed he is carrying an astonishing $1.2 billion (£914.8 million) in debt.

When asked whether such a massive debt makes him nervous about defaulting, Kiyosaki burst into laughter and quipped, 'it gets me sexually stimulated.'

He explained that owing the bank $20 million (£15.2 million) and defaulting is a problem, but owing a billion dollars and not paying it back shifts the problem to the bank. Kiyosaki believes debt should not be feared. Instead, he sees it as a tool that, if leveraged correctly, can make you money.

He suggests that scale enhances power: while a smaller borrower relies on the bank, a large borrower becomes too big to fail. When debt reaches such high levels, the bank's balance sheet is also exposed along with the borrower. Kiyosaki describes this as a deliberate strategy, not a mistake.

He differentiates between good and bad debt, stating: 'debt that makes you rich and debt that makes you poor.' He likens it to Monopoly: 'four green houses, trade up to a red hotel. Most people never get past the first house. I own hotels in town. I just play Monopoly. It's not that hard to do.'

While many borrowers worry about rising interest rates, Kiyosaki's approach is founded on the principle that larger debt equals bigger leverage.

Multiple Paths to Wealth

Kiyosaki's wealth stems primarily from real estate, a tangible asset class he has championed for years.

Though his methods—such as using debt to generate income—may not suit everyone, he emphasises that 'there are so many options to get rich, but you've got to find the one that works for you.'

Recently, Kiyosaki has been urging investors to accumulate gold, silver, and Bitcoin, warning that the biggest stock market crash in history has already begun. He has been predicting this crash for over a decade, pointing to signs of market weakness across the US, Europe, and Asia.

Kiyosaki is vocal about concerns over 'fake paper money' and the US government's reliance on printing money. He warns that the US cannot continue to print money indefinitely to cover its debts—an issue underlined by the country's record-high national debt.

The US debt is the largest in the world, and recent market movements reflect investor anxieties. The S&P 500 and Dow Jones have fallen 1.9% and 1.4%, respectively, over the past month, with the Nasdaq 100 dropping 3.5%.

Preparing for the Coming Market Crash

In a recent post on X, Kiyosaki warned that artificial intelligence will eliminate countless jobs, inevitably leading to a collapse in office and residential real estate markets.

For investors seeking refuge from this impending recession, he recommends diversifying into precious metals, particularly silver. He asserts that silver is currently priced at around $50 per ounce and predicts it could rise to $70 soon, potentially hitting $200 by 2026.

Kiyosaki's advice underscores his belief that strategic asset allocation—especially in tangible assets like silver—will be crucial during the coming economic downturn.

As global markets face increasing uncertainty, his insights serve as a reminder that understanding debt's strategic use and diversifying assets might be vital for navigating the financial storms ahead.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.