Well-known American investor and author Robert Kiyosaki predicts the world economy will collapse in 2016 and warns the public to be prepared for it.
“It’ll be the biggest collapse in the world’s history…Greece is going down, Spain is going next, then the United States will go, and England will crash in around five years,” said the author of Rich Dad Poor Dad.
Kiyosaki said other financial analysts and economists have forecast the financial meltdown to happen between 2017 and 2025.
He thinks Germany cannot single-handedly save the euro and countries like the US and Japan have taken on more public debt than they can afford to pay back.
“Japan’s debt is 214 per cent of its GDP (gross domestic product). It used to be the richest country but its economy crashed in 1990 and it has been in recession for 22 years,” he said at a press conference at Summit Hotel.
Kiyosaki said the current global financial system, which is based on the US dollar instead of gold and has allowed countries to print as much money as they want since 1971, is unsustainable.
Kiyosaki added that while China may have surpassed the US to become the world’s main economy driver, its economic growth is slowing. He highlighted that China’s export only increased five per cent and its import growth was zero last year.
“That’s bad news for export-driven countries like Australia, Germany and Malaysia. If China is not importing, (you guys) cannot export,” he said. China has been Malaysia’s largest trading partner for the past 12 years, with Malaysian exports to China increasing from 3.7 per cent in 2000 to 13.1 per cent last year, according to RHB Research Institute report on Malaysia released on Monday.
Kiyosaki said the general public must educate themselves to be financially literate as existing schools worldwide do not provide the necessary financial education.