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FAKE by Robert Kiyosaki

Seven Practical Reasons I Own Real Gold And Silver: A Case For God’s Money

Reason #1: Real gold and silver are not investments.


The author says that Gold and silver are his insurance, protection from the leaders and himself.


Reason #2: No risk.


Always remember, the price of gold or silver will go up or down because the value of our fake money is going up or down.


Just as Warren Buffett holds stocks forever, the author says he will own gold and silver forever.


The author advises using banks for storing short-term cash, that is the operating capital. But never hold any long-term wealth in banks because they are too risky.



This is what happened in 2008:

  • Subprime borrowers, people borrowed money to buy a house they could not afford.
  • Banks were happy to issue the subprime loans.
  • The bank then sold the mortgage to an investment bank.
  • The investment bank then packaged thousands of these subprime loans, labeling them mortgage-backed securities, or MBS, a financial derivative.
  • Investment banks sold these MBS to governments, investment funds, pension plans, and other gullible people.
  • To give all parties a sense of security, these elites bought insurance policies, known as credit default swaps, CDS.
  • Everyone was getting rich because everyone was collecting “fees.”
  • The elites created an economy built on deals that moved assets around instead of building new ones. They created exotic, and risky, financial instruments, including derivatives and credit default swaps, that produced sugar highs of immediate profits but separated those taking the risk from those who would bear the consequences.

The entire global monetary system is built on counterparty risk.


Two minds are better than one – except in school, where two minds working together is called cheating.


Reason #3: Gold and silver attract real wealth. Wealth attracts wealth just as poverty attracts poverty.


Reason #4: Why real gold and silver? Why not paper gold and silver exchange traded funds (ETFs)?


The author does not trust anything in paper. Anything in paper is a derivative, a fake, something that requires a counterparty for value.


Financial Education:

Much of the global banking system runs on what is known as fractional reserve banking.

The world’s banking system is built on fractional reserve banking, a system that has been running the world for thousands of years.


Reason #5: The system is broke and broken. The gap is growing. We are on the verge of class warfare.

A picture is worth a thousand words.

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