Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki

This is my reflection after reading Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki.


This book, Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki, is definitely not a how-to book to get rich.  It is not even a finance book to help you understand the complicated world of investment.

This book is meant as a wake up call for all of us who are living in our make-believe world, and not in reality.

Robert Kiyosaki tells us that the world is changing.  It is no longer a world that rewards honest, hardworking persons who work hard, save hard, and invest in stock market for retirement.

The old model of earning money, saving money and stock market diversification is over.  If we are still following the same advice that served our parents well, then we are living in a make-believe world.  We are not living in reality.

Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki aims to change our thinking, so that we know what is wrong.

Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki aims to tell us that going against the system never works.  We cannot go against the invisible monetary system that makes the world goes round.  We do not and cannot bring the demise of a currency.

We have to understand the limitation and the imperfection of the system.  We have to know how money flows from one place to another.  Once we gain this knowledge, we can make use of the system to get rich.

Is this book practical?

Yes, definitely.  It explains so many things that puzzles all of us in times of crisis.  It explains the difference between Dollar and Currency.  Currency flows.

This helps me to understand the question: When the stock market crashes, trillions of dollars are gone from the stock markets.  Where do the money go?  The money does not just disappear.

The answer is that currency flows.  Money flows.  The money flows away from the stock market into commodity or bonds.  Money is liquid.  Money flows.

This book tells us that governments can create inflation. They do not combat inflation.  They simply pump more money into the banking system, so that the prices of everything go up.

That is the magic of printing money out of blue sky.

The governments do not need to print more paper money in order to create more money. They can simply pump more money electronically into the banking system.  As a result of such manipulations, the price of everything goes up faster than our salary.

Our salary is the only thing that goes down or stay the same.

If the inflation rate is 6% per year, and assuming that this applies to everything except your salary, the value of your house doubles every 12 years.

It seems great to see the house which you have bought for $100,000 double in value every 12 years.

After 24 years, the house is worth $400,000.

Does this make you feel rich?  If you start to feel rich, you are really blind and stupid.  The value of the house remains the same.  However, the value of money changes.  That means you are having less purchasing power.

Will price ever come down?  Yes.  When that happens, the economy is doomed.  We can see it happening in the small towns where jobs are flowing out.  The housing market is dead.  Nobody wants to move into these towns.  There are many empty shops and houses, but nobody wants to buy.

That is why the governments of the world rather print more money than to let the price comes down.

That is the most scary part of reading Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki.  Sooner or later, the rich will control everything, and the poor are priced out of affordable housing.

Since the rich are the ones providing all the jobs, all the rental apartments, and houses, the poor do not have a chance, unless they learn the game of the rich.

Even then, it is hard to survive.

The best way to do so is to start a business, and hope the business booms before the rich start to think of ways to kill it.

The next best way is to buy rental apartments in areas which are growing, so that we can gain from cash flow and capital gain.

The problem is that we need knowledge.  We need technical knowledge as in financial knowledge.  That is hard enough to gain, since it requires hours and hours of learning, and we need to put in practice.

Putting into practice means increasing chances of failure.  It is nearly impossible to get rich without some costly failures.

That is why after reading Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki, I feel the fear of the common people.

They know that the world is different, and they fear being priced out of everything.  They do not know what to fear.  At least I know what to fear, since Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki tells us in very simple words.

Rich Dad’s Conspiracy of the Rich by Robert Kiyosaki is a good worth reading and re-reading.  It should strike fear in your heart, while at the same time offers hope that it is possible to get rich, despite the fact that the rich and powerful control the world.