Rich Dad Poor Dad author Robert Kiyosaki recently warned Americans of the impending crises as the BRICS nations move beyond the US Dollar. The BRICS nations are reportedly developing a new precious metal-pegged currency, leading to the return of US dollars in the form of a "Triffin's Dilemma". This event is expected to bring about much worse scenarios, such as hyperinflation, war and starvation.

The Triffin's Dilemma is a situation where the issuer of the global reserve currency (in this case the USA) must supply excess currency to the global market, to ensure liquidity. As a result, the USA must print a vast number of dollars, far surpassing the actual demand. When BRICS and other nations oppose the US dollar, they "take back" their dollar and send it back, leading to a surplus in the US.

Therefore, hyperinflation is not the only trauma expected- war and starvation are also predicted to arise. Countries are beginning to comprehend that the US dollar cannot be fully trusted and this continues to bring about a decrease in faith in the US dollar. Nevertheless, according to Kiyosaki, it is a necessary by-product of the re-structuring of the currency system.

All in all, the prediction of upcoming financial and social crises in the US should not be ignored. As the BRICS nations take strides to form their own independent precious metal-pegged currency, the American society could face severe monetary, political and social problems, unless prevented. Preparing for the worst by finding alternative ways to secure wealth and create emergency plans is a rational response to the events that Kiyosaki expects to come in the foreseeable future.



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