Being Rich #2

 we're in a crash the you know the the purchasing power of the yen the euro the rupiah all going down and people are working harder and harder and harder and the Central banks of the world are printing more money interest rates You know Trump just hold the Fed don't you raise those interest rates while that screws all the Savers, right and everyone hears the economy's doing great and stop mark itself But the middle class and the poor are having a harder time, correct? right and that's why that's why I write and I speak and So if someone's listening to us that's stuck in that poor middle class trap and they hear it's their fear that ultimately is keeping them from that That's a hard thing to hear Robert But you're gonna give them the information about what they can do if they can get out of that fear well, every time I and I do a lot of speaking to the masses out there, you know Lehman doesn't invite me on because we're gone, but they go what what you know, it's so risky what you're saying is risky I said What I do isn't risky for me. What's risky for you? And when somebody says what is risk?

 Yes the look in the mirror Jen I mean for me to fly in Vietnam that was high risk, but the higher the risk the more you have to study you know that I know that So if you're not gonna study, you're not gonna practice and all that then you should do what Wall Street tells you to do by you know 401ks mutual funds ETFs and all that but that that's where they're fake assets because he'll they make Wall Street or The City of London rich just watch where the cash is flowing follow the money Yeah, it's not making the poor middle class rich, you know all Wall Street in America has done is rip off the pensions because you know pensions are the biggest pool of money in America and states like Kentucky in New Jersey Illinois California Hawaii are going bankrupt Because Wall Street went in and just sucked all the cash are their pensions So the schoolteachers like my dad the firefighters and police officers. They have no retirement now And so that's why is fake money fake teachers fake asses. They're the same system and that's what Bucky fuller encouraged me Years and years ago. He says you better tell the world that you know And that's what I knew Let's talk more about this fake money because I'd love to go through each one of these pieces and just keep a little bit more Of an idea. So Nixon takes us off the gold standard which basically means now they can print money whenever they want So what you're saving and hoping that'll be worth something one day Is it the whim of a government to just print more and make it obsolete? Well, make sure is that just thinking about it, doesn't it? Yeah if you read Rich Dad Poor Dad rich dad's lesson number one The rich don't work for money Don't you touch that stuff? You said when someone gives you a paycheck? It's something inside of a person just shuts off, right? Well, it's not even that they've already sucked the life out of your paycheck, right? I see it when 71 that's that's where fake starts My rich dad sent me a letter Oh stationed on the aircraft carrier off yet now and it says hey Did you know that Nixon took the dollar off the gold standard and we didn't know we're not in the banking industry And he says watch out the world's gonna change so by the time I got the letter was 72 and Then my co-pilot I said well what does gold and gold standard mean, but we didn't know American was illegal for Americans to own gold in 72 imagine that Wow That's how powerful goal was I said and the more I researched it the more I found out so my Copen either where the book stars fakes threats, we fly behind enemy lines to go look for gold which proves Marines are not that smart And you were quite a wild one We're sure yeah, we went to we went to look for gold and we're standing in front of those little vietnamese woman Who's the the broker for the gold company? And she's selling those little cubes little nuggets of gold? And then you know gold was 35 an ounce. It was now pushing 50 an ounce so I figured while she's behind enemy lines. We're behind enemy lines.

 I can negotiate a deal Because little tiny woman or red teeth. Could they to beetle nuts all day long and I go I'll give you $40 she goes She laughing about we're behind enemy lines, I got us dollars she And then I realize she knew more about money than I did I don't think she went to Harvard Jan I mean she knew that this was worthless the gold was worth more than my dollars and That's where the fake money comes to and then I got curious. Okay So even she knew with very little education behind enemy lines that the gold was a real asset call spot, right right spot price Yeah as they know all over the world cuz what same price right? Yeah, it's the same price via enemy lines same price and I'm going so why they take dollar off the gold standard And what does this mean? What don't we know it? Follow it my Rich Dad, you know the pieces of the puzzle kept falling into place So what that meant was in 71 they could print as much money as they wanted. So as the economy of the United States worsened You know the deficit trade deficit And print and print and print so that's why if you read when you read fake it says The people that are being screwed today are the poor middle class because they work for money You know the bank repairs they're not working for money they have money working for them Yeah, right very big difference in mentality here. So we have in America today We have you know, even Ray Dalio of Bridgewater on the biggest hedge fund guys in America He's saying this gap between the rich and everybody else is too wide. Well, you could have seen that back in 1972 because the moment you Corrupt money the very thing that everybody works for saves Counts on they were screwed anyway And our school systems fake money fake teachers fake as it's part of that same system government Education Wall Street, or City of London and how does the fake teachers coming in from there? They reinforce those same ideas. They treat they teach us to be employees right to not notice it All right, get a job and it's it's very subtle.

 They don't say To train you to be a worker be the rest of your life But they educate you in a way where that's what you come out right and you know in in Paris today They have the Yellow Jackets. Yeah, the process going on in America today are red forehead All these cool teachers are putting on red t-shirts because they know they're being screwed they're protesting and all this their pension plans have been sucked dry by Wall Street and What they do, they put hedge fund managers in to manage the pensions you Got to be kidding me You put a hedge fund guy in to manage The biggest pot of money called the school teachers firefighters and police officers Pensions, they just sucked all the cash out of it and the teachers are going What happened to us? But because they don't know anything it's red for it They're out there protesting in mass all over the United States, but you don't hear about it. They talk about the yellow jackets They don't talk about red forehead So this whole thing is coming apart right now and it goes back to the question. I elbow high above us ass Why doesn't our school teach us about money because Wall Street won't let him   That's simple that's so now. You got a different education about money with your rich dad and I reread that book when I went out to see you in Arizona and What really hit me was the hard lessons he made you learn young you went to go work for him and I don't even know how you kept going back, but because it was weeks and weeks of Asking you to do things I think not paying you but he was Forcing your brain to be uncomfortable so he could turn it into kind of the entrepreneurial brain, right? 

Well, what are some of the things he was doing because for a young kid, I mean, it must have been flabbergasting, right? well, he said I Said I want you to teach me about money. So it was so why should I teach you? You go to school your dad's got the debt my poor dad's not going to teach you he goes he says I said Oh finally I keep Acquiesced I said okay he says but if I teach you you work for me for free And I said why for free and my dad my poor debt whatnots. He says because if I pay you you think like an employee Your brains will your brain will change if you learn never to work for money, you'll be a rich man So I might add the poor tip and the back story for people your dad was the poor dad right PhD Stanford Northwestern University cago the head of education for the state of Hawaii candidate for Lieutenant Governor of Hawaii as a Republican of all things they know nothing about money and They teach our kids, right? They're good people like ninety eighty percent of good people twenty percent just are there for the pension and the paycheck? You know that and your dad knew that the poor dad was the one to go talk to about business He even he knew you know should go talk to buy about him about money. Right my poor. Dad said go Talk to your best friend's father Mike's father I said why is that he says because Mike's father's an entrepreneur and you know, nine years old. So what's an entrepreneur? And I said, well, I'm an employee They're two different people right mindset wise, right? And this is powerful Once you give someone a paycheck their brain turns off because it had been the promise of a pension right a job security Which is kind of a paycheck in disguise, correct? After you stopped working back to that old analogy give the man a fish eats for the day teach him to fish He throw a lifetime, you know one is capitalism one of socialism right today, you know, I don't you been following in here the UK but the Democrats They've gone hardcore communist, you know, they have Ocasio Cortes Yeah, Elizabeth Warren, you know Bernie Sanders looks like a conservative, you know He's hardcore socialist as they come and they want to give everybody a free education free medical You know free manicures free pedicures Universal basic and universal Income what do you think of all that? That's wonderful, if you know how to pay for it But don't do anything to get elected, right? Yeah, they have to go extreme right now Otherwise, they have no chance, right and so a couple of their lessons you're you're poor dads. Are you're rich Dad said I'm not gonna give you a paycheck and yet you still showed up. What else was he? What was he trying to do those first few months were you working for him? What was he trying to get across to you? Because he taught you the hard way about money Well, it came a Lesson before I reg dead.

 I was in Sunday school I flunked out of Sunday school else and that whatever that I never did well in Sunday school But the my Sunday school teacher was a young pretty woman, you know, and she said I'm like nine And she goes why were the three wise men wise? You know I go cuz they were rich in the game the game they gave the swaddling Jesus Golf frankincense. And myrrh, so they have to be a rich guys. I said in a Oh commodities as well. Yeah And she goes no, no, that's not it Well when they had gold frankincense, and myrrh, well, that's not it. So why were their wise? I don't know. Just what made them wise was they always sought the best teacher? As she said if you're gonna be a successful in your life you've got to find the best teachers And so with that when my poor dad said go seek out your rich dad. I was just following her advice and Today, that's why you and I jump no Jim Rickards and Nomi Prins and all these people they're the guys that actually Harlow came from the inside just like you from the inside the machine and They know what's going on and they tell the world what's going on? so I've had a habit ever since then or a Policy if I find out there's a great teacher and a great teacher is somebody who comes from the inside not the outside You know when I was in flight school I Swear to God my pilot Mike Instructors could fly because I flew with them but in school, you don't know if your instructor is for real or not That's where the fake teacher comes from When I was in my MBA program, I was still in a Marine Corps. I came back from the more I'm in the MBA program and back then this is the 73 now And the students were spitting on me yelling at me University of Hawaii. You know, I'm there I was stupid enough to go in my marine corps outfit my flight flight suit and They're yelling at me baby killer and all this. I'm sitting in this classroom and my MBA accounting teacher Doesn't know what counting and I'm going I'm going nuts I'm not an account, but I knew he wasn't an account also So I took him honest and I said are you an account? He goes I have a master's in accountancy. I Said that's not the question Are you an accountant? I? Have a master's in accountancy And I stood up and I said Marines are not the brightest guys I said Give it are you an account? Same answer as a you're a fake You don't know what you're talking about and to this day when I listen to what people are teaching Kids about accountancy, it's bad accountancy, right? This is not practical. It's not real-world confusing Right right assets put money in your pocket liabilities take money from your pocket. They count anything of value as an asset They cut your car is an asset. Your house is an asset We're just really taking money from your pocket your retirement plan. 

And guess what? the liability taking money from your pocket every month and whose pocket does it go to Wall Street or City of London and And that's why is you and I know These funds you know, they sit there they go assets under management That's what they're paid on You're not you're not making any money But they're making fortunes on the fees and assets under management and most of these hedge fund guys and all that You're not making any money, but they're sucking the fees out Every day right and most poor people confuse Assets for liabilities. They think their home is an asset. It's an actually a liability, right and again, that's why yelling at the Accounting teacher I said an asset is a noun like a house Cash flow is a verb, so to understand if it's an asset a liability. It takes a noun + verb So if the cash is flowing out of your pocket, it's a liability If the cash is flowing into your pocket asset verb, it's an asset So I own 7,000 rental properties Those are assets every month the cash flows in Whereas many people have the big house on the hill and the cash is flowing out right and they're going broke, right? It's like a frame of mind the other thing the poor don't understand is the number one expense for most people as taxes and Yet we don't even see it Isn't that weird you walk around and you look at the paycheck and say oh that doesn't seem right and you don't realize that The government's got a huge hand in your pocket and you are doing nothing to minimize that again This is what it's very different about the rich and the poor well the reason The rich don't work for money is number one expensive tax See, there's three kinds of income earned portfolio passive So earned income is if I get a job that's earned income If I'm a doctor or a programmer that's earned income because I'm working for it If I buy us a by let's say Apple for ten dollars and I sent it for 20. That's Portfolio income capital gains. Yeah But passive income which is cash flow Is never text So it's not So obvious guys are screaming right now in America tax too rich I said, good luck Because most of the guys complaining they don't know those three kinds of income and the rich don't have jobs Anyway, they have assets and so the average small out there a poor guy, you know sent the kid to school. They don't learn this So that's why in fake as you were talking about it is a newspaper article about Jared Kushner and He explains how the Trump's and the Kushner's don't pay taxes and make millions of dollars and the reporter couldn't understand him Because they're not our schools will never teach you that Three types of income and they judged him and say they're wrong and it's cheating and we see that over and over again Amazon not paying taxes. What do you say to people when they come up to you and say Robert? It's not fair It's not fair. They're not paying taxes.

 Well, there's always three sides to a coin, you know heads tails into edge You know some would say the coin a you are from my side. It's fair But this is the difference. Everybody can do the same thing. I do because the tax laws are for everybody You know They don't say well the tax also only for the rich the tax laws are for everybody to use if you have the right financial education and There is that I'm an advocate of financial education without that education. You'll have to pay taxes You see very few people will buy what I do Make a million dollars and pay zero tax That takes and my rich dad taught me that playing Monopoly. That's how it started, you know for green houses one red hotel Or the McDonald's form and I write about it yet McDonald's Ray Kroc. Yeah McDonald's is in the real estate business. So they sell hamburgers, but they buy a real estates. They pay no taxes You know this guy Bezos, but he's sixteen billion dollars how much tax did append a 16 billion? Zero and that's all legal anyone can do it everybody could but everyone knows people lack the education Courage Jarrod learned about money when he was a kid by watching his father By watching these people will invest in real estate and said wow Not only do you get to make the money you get to keep the money. That's a big problem A lot of people don't understand they look how much money I made but how much did you keep? Because that could be half. Did you pay right? What tax did you pay? And so well you always say this is the law The law is true for every citizen you can do it, but most people just don't do it Sometimes like you said, they don't have the education but you need to have a plan if you're gonna go do risky things Well, that's not risky I mean to me what's what's a risk is having a job in paying taxes and saving money because they're printing it You know that's the worst thing of all and that's why there's fake money fake teachers the teachers will never they don't know it right and fake assets because Wall Street or the City of London or Lehman Brothers or Goldman and though they're not going to tell you this. Yeah, how are their billionaire bankers today? You know I've been supposed to be watching your money, you know. Yeah, I want to talk about that You said in here also the greatest asset you have is your mind What does that mean? Well because money doesn't exist anymore Inside fake I cover the infinite return When I came back from Vietnam in 73 January of 73 My poor dad said get your MBA if my Rich Dad laughed And my rich I saw I asked her why she laughed, why'd you rich dad? Laughs? He's so good you go You're gonna turn out to be an employee Who else hires guys with MBAs? Yet. I mean he was just Pragmatic about it. He says if you really want to be a rich take a class on real estate I said why is that he says I didn't know at the time but once you understand real life real estate is based on debt and He says you will learn how to use debt as money because that's what happened in 71 the US dollar became dead So once you learn how to use debt as money, you can never say I can't afford it You see because the banks will give you so the banks after the crash of 2008 The banks gave me 300 million dollars tax-free to buy real estate that the idiots had lost Atha stand there they were idiots because the prices were so high Why would you buy it at the top of a market don't you know, that's gonna crash They oh, no. No, this is the oh, that was the Subprime was the derivatives market. There's mbss and all that stuff had driven the price of real estate so high and the rest of us were just waiting and then when the whole thing came crashing down all This real estate was now available and they needed you know The Fed and those guys in the Treasury needed guys like us to go in there So Wall Street gave us hundreds of millions of dollars to mop up all that real estate These guys had lost now, it's fair because everybody could do it, right So, you know when they ask the average guy said can you why don't you use debt?

 They can't even get a loan Because there are scores their FICO scores won't let me have them here are so bad. Right, right So that's what's going on in the world today. It's fake money fake teachers fake asses The schoolteachers will never tell you that because they don't know it my poor dad Never knew that and he thinks they think the rich are crooks The risks just played by different laws The rules are the same But you have to do what the government wants you to do Talk to me about these fake assets and what do people have to know about them? We were what we were talking about my history in the crisis.