– Why savers are losers

Here is the much celebrated Robert Kiyosaki on why the Savers are losers! Well, the countries where people save .. at least dont have to borrow as much as US does… thus jeopardizing their economic future! Well still worth a read.

A New System of Money

In the closing days of World War II, the Bretton Woods System was put in place to stabilize the world’s currencies. This was a quasi-gold standard, which meant currencies were backed by gold. The system worked fine until the 1960s when the U.S. began importing Volkswagens from Germany and Toyotas from Japan. Suddenly the U.S. was importing more than it was exporting and gold was leaving our country.

In order to stop the loss of gold, President Nixon ended the Bretton Woods System in 1971 and the U.S. dollar replaced gold as the world’s currency. Never in the history of the world had one nation’s fiat currency been the world’s money.

To better understand this, my rich dad had me look up the following definitions in the dictionary.

“Fiat money: money (as paper money) not convertible into coin or specie of equivalent value.”

The words “not convertible into coin” bothered me. So my rich dad had me look up the word: “fiat.”

“Fiat: a command or act of will that creates something without or as if without further effort.”

Looking up at my rich dad I asked, “Does this mean money can be created out of thin air?”

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