Friday, October 9, 2009

Rich Dad's Conspiracy of The Rich

How much money can fed really print? Unlimited! Hurray!! Do you know the difference between Money and Currency? Robert Kiyosaki promises to brief you on the history of money and the changes financial system has undergone and the mistakes of the past governments and the current one. He also talks about the conspiracy theories, but above all professes to the reader to act, and promises to arm the reader with the tools to take action from which they will profit. Kiyosaki further points out that the education system does not make any financial knowledge an integral part of the system, and thereby keeps the people clueless.

So, what is this book about? That the rich are always conspiring against the general population and that is how they become and stay rich. But that is not all, the part of the conspiracy is to keep you ignorant, and therefore the key is to learn the financial ropes. As against the principles of frugality put forward by Lauren Weber in In Cheap We Trust, Kiyosaki asks you to spend, that is invest smartly.

If the first part of the book looks at how everyone is conspiring all the time, the second part looks at the current situation and how you can adapt and use the system to your advantage. Kiyosaki explains the connection between the demographic and the economic development, a recurring theme highlighted by other authors recently like Kenneth W. Gronbach's The Age Curve.

The book consistently instills that frugality is not good, and that living below means or avoiding debt are just marketing keywords to deter you from being rich. However, he fails to illustrate any examples of spending being profitable and the alternate investment paths that you should take. Looks like "rich" author is nudging the people to spend more in times of recession and keep the cash flow going.