Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money


Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money By Robert T. Kiyosaki Business Plus 2009

Robert Anton Wilson, in his book Everything Is Under Control, reported that “a random telephone survey of 800 American adults in September 1996 found that 74 percent – virtually three out of four citizens – believe that the U.S. government regularly engages in conspiratorial and clandestine operations.”

Robert Kiyosaki – the author of Rich Dad’s Conspiracy of the Rich – agrees with the 74 percent surveyed in 1996. As Kiyosaki writes in his book: “So has there been a conspiracy? I believe so, in a way.” He goes on to explain why he believes so, citing the lack of financial education in the school systems, the Federal Reserve Act, and Nixon’s 1971 dismissal of the gold standard. And most interestingly, Kiyosaki believes that 401(k) retirement vehicles placed the retirement money of average people in the hands of Wall Street.

The first chapter of the book is entitled ‘Can Obama Save the World?’ Kiyosaki’s answer is no. And apparently, Obama doesn’t want to even if he could. For he appointed Summers and Geithner, both of who played a part in repealing the Glass Steagall Act. In other words, it’s the same old same old. Nothing has changed. Which means that the average person needs to understand how taxes, debt, inflation, and retirement affect them. Kiyosaki sums up the chapter by stating that once one understands the new rules of money, then one can “opt out of the conspiracy of the rich.”

From there, Kiyosaki moves on to explain how we got where we are. He points the finger at the Federal Reserve Bank, which inflates the money supply, which destroys the value of savings and retirement plans. And he makes it very clear that the rules of money changed dramatically when the U.S. went off the gold standard in 1971. For up until that time, “technically, prior to 1971, the U.S. dollar was a derivative of gold. After 1971, the U.S. dollar became a derivative of debt.”

Kiyosaki proceeds to discuss what he calls ‘The Invisible Bank Robbery.’ He says “since money is invisible, a derivative of debt, bank robberies by bankers have become invisible.” Two ways these invisible robberies occur are: fractional reserve banking, which is nothing more than banks lending money they don’t have; and deposit insurance, which “protects the bankers – not savers.” Then he asks a very pertinent question: “why should an insurance company like AIG receive bailout money in the first place? Isn’t bailout money reserved for banks?” His answer is gloriously simple: “because it owed the biggest banks in the world a lot of money and didn’t have the cash to pay up.”

After allocating the first half of his book to talking about the conspiracy, Kiyosaki utilizes the second half of the book describing how to fight back. And although he acknowledges that the Fed is the culprit, he does not advocate abolishing it. For as he asks, “What would replace it? How much chaos would that cause? And how long would that take?” Instead, Kiyosaki advocates using the new rules of money to one’s advantage.

He lists five new rules at the beginning of the second part of the book. They are as follows: money is knowledge; learn how to use debt; learn to control cash flow; prepare for bad times and you will only know good times; and the need for speed. The latter rule – the need for speed – is an eye-opener. In other words, it should be read, memorized and implemented by everyone.

Read the rest of the article