Kiyosaki warns of “biggest crash in history”, urges followers to buy BTC and ETH

  • Robert Kiyosaki pointed to the looming U.S government shutdown and Evergrande’s debt issues as a “message”
  • He urges his followers to buy gold, silver, Bitcoin and Ethereum in preparation for “the biggest crash in history”

Author and Financial Education Advocate Robert Kiyosaki has advised people to buy assets like gold, silver, Bitcoin and Ethereum in preparation for “the biggest crash in history”. This while pointing to the news coming out of Washington of a potential government shutdown due to budgeting issues. Kiyosaki also mentioned Chinese property developer Evergrande’s debt crisis. The company’s collapse could have dire effects beyond Chinese markets.

Citing the two scenarios, Kiyosaki asserted that both the US government and Evergrande, China’s biggest property developer were out of money. He then urged his 1.7 million Twitter followers to buy assets including Bitcoin and Ethereum before the seemingly inevitable crash.

White House budget office advises govt agencies to prepare for shutdown

On Thursday the White House’s Office of Management and Budget warned government agencies that failure to come up with an appropriations bill in time could result in a shutdown next week. Working with a September 30 deadline, House Democrats on Tuesday voted for a bill to keep secure government funding, suspend the debt ceiling and set aside emergency funds to help Afghan refugees settle and rebuild communities affected by the recent natural disasters.

The challenge lies in Senate approval as Republicans have already vowed to block the bill. This would lead to America’s first shutdown in the Covid era. Implications include crippling the already strained healthcare system and many hundreds of thousands of federal employees going unpaid until funding is secured.

Evergrande’s $300 billion debt and possible implications for international markets

The property developer, China’s biggest by sales, has previously warned investors that it could default on its $300 billion debt. With more than 1,300 projects in upwards of 280 Chinese cities and a staff of over 200,000, Evergrande’s collapse would have serious ramifications not only on the Chinese economy but globally as well.

According to a report by The Guardian, a Barclays analyst commented;

A possible Evergrande default could be a significant drag on the property sector. But we think it is far from being China’s Lehman moment.

Jimmy Chang, Chief Investment Officer at Rockefeller Global Family Office believes that international markets could also be affected.

If China were to have a serious economic issue because of China Evergrande, the rest of the global economy would have contagion from it.

Is ‘the biggest crash in history’ eminent?

While there is always the slim possibility that the looming shutdown can be avoided and that the Chinese government could step in and try to cushion the impact of the Evergrande saga, it would be prudent to be prepared. While crypto is, in and of itself, a risk — like every investment — it has been and is still being used by some as a hedge against inflation in uncertain economic conditions.

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Tukiya is an IT Student with a newly found interest in blockchain technology and its potential applications in everyday life.

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