0:00:00.000,0:00:00.780
The reason I wrote

0:00:00.780,0:00:02.075
The Rich Dad Poor Dad was

0:00:02.075,0:00:04.105
Because I knew this time was coming

0:00:04.105,0:00:08.342
[Music]

0:00:08.342,0:00:11.852
And we have as world have never been here before

0:00:12.252,0:00:13.592
and so it's a spooky time

0:00:13.592,0:00:14.562
Damn yet

0:00:14.961,0:00:16.971
It's probably the most dangerous time

0:00:17.031,0:00:18.641
Ever ever ever ever

0:00:18.791,0:00:20.661
There's nothing to compare it to

0:00:20.661,0:00:23.251
because there's never been a world economy before

0:00:23.251,0:00:24.011
For example

0:00:24.011,0:00:25.741
you know 100 years ago

0:00:25.741,0:00:28.361
if there was a stock market crash in England

0:00:28.361,0:00:29.611
Didn't affect anybody

0:00:29.611,0:00:31.461
but now the US market goes down

0:00:31.461,0:00:32.689
the world goes down

0:00:32.689,0:00:34.540
So plus with social media

0:00:34.540,0:00:36.560
and all this we're doing right now

0:00:37.200,0:00:38.995
so we've never been here before

0:00:39.100,0:00:40.890
and

0:00:40.890,0:00:41.890
You know I

0:00:41.890,0:00:43.890
I'm excited about it

0:00:43.890,0:00:46.340
Because I make more money in crashes

0:00:46.340,0:00:48.110
than I do when they go up

0:00:48.110,0:00:49.560
so but for the average person

0:00:49.560,0:00:50.990
they'll get wiped out

0:00:50.990,0:00:52.760
I'm afraid at the worst

0:00:52.760,0:00:53.940
I hope I'm wrong

0:00:53.940,0:00:55.070
but I think we head for

0:00:55.070,0:00:56.790
a global depression

0:00:56.790,0:00:59.420
How does this play out

0:00:59.420,0:01:00.880
for the average worker

0:01:00.880,0:01:02.720
for the small business owner

0:01:02.720,0:01:04.890
I mean what's the next 3 months look like?

0:01:04.890,0:01:05.709
because it doesn't look preaty

0:01:05.709,0:01:07.509
I mean people are already being laid off

0:01:07.509,0:01:08.809
made redundant

0:01:08.809,0:01:09.749
businesses are

0:01:09.749,0:01:12.339
there's no cash flow in most of these businesses

0:01:12.339,0:01:14.039
How does that play out?

0:01:14.039,0:01:14.769
Well let me give you

0:01:14.769,0:01:15.669
one more step

0:01:15.669,0:01:17.589
just to give you the size of it okay

0:01:17.589,0:01:21.589
The national debt for WW2 was 25 billions

0:01:22.630,0:01:24.650
Everyday today

0:01:24.788,0:01:28.988
Everyday they're printing 125 billions

0:01:28.988,0:01:31.018
Every single day

0:01:31.018,0:01:33.564
that's like five WW2 per day

0:01:33.564,0:01:36.014
They're printing so much money

0:01:36.014,0:01:38.446
to keep this think a hot of air balloon

0:01:38.446,0:01:40.356
with a tear in it

0:01:40.356,0:01:41.956
and they're doing desperately

0:01:41.956,0:01:43.256
trying to fix this tear

0:01:43.256,0:01:44.826
but no matter how hard they try

0:01:44.826,0:01:45.880
the tear has gone beyond

0:01:45.880,0:01:47.420
it's coming down

0:01:47.420,0:01:48.989
so in financial terms

0:01:48.989,0:01:51.010
it's called out debt-to-GDP

0:01:51.010,0:01:53.430
has now gone from 60% to 90%

0:01:53.430,0:01:54.180
to 105%

0:01:54.180,0:01:55.690
it's going to 120%

0:01:55.690,0:01:56.870
we're bankrupt

0:01:56.870,0:01:58.040
and they are going to print

0:01:58.040,0:01:58.670
more and more money

0:01:58.670,0:01:59.900
which means savers are losers

0:01:59.900,0:02:01.700
just as I predicted

0:02:01.700,0:02:02.910
your money is going to be worthless

0:02:02.910,0:02:03.990
in a few years

0:02:04.320,0:02:05.340
So

0:02:05.340,0:02:07.100
my messages is same

0:02:07.100,0:02:09.040
as some of your other guests

0:02:09.040,0:02:10.940
this is metamorphosis time

0:02:10.940,0:02:13.310
Financial education in Rich Dad's terms

0:02:13.310,0:02:17.310
is really financial transformation

0:02:17.310,0:02:19.380
and the definition of metamorphosis

0:02:19.380,0:02:21.000
is very important

0:02:21.000,0:02:21.940
Metamorphosis

0:02:21.940,0:02:23.170
The definition is

0:02:23.170,0:02:25.480
the evolution or the transformation

0:02:26.111,0:02:28.001
from an immature form

0:02:28.574,0:02:31.384
to an adult form

0:02:31.384,0:02:33.264
an immature form

0:02:33.264,0:02:34.534
to an adult form

0:02:34.534,0:02:37.674
Metamorphosis is the same as a caterpillar

0:02:37.674,0:02:39.504
turning into butterfly

0:02:39.504,0:02:40.834
and Fuller always said

0:02:40.834,0:02:42.394
"There is nothing to predict

0:02:42.394,0:02:44.094
a butterfly inside a caterpillar

0:02:44.300,0:02:46.500
So anybody listening right now

0:02:46.500,0:02:48.380
if you're struggling financially

0:02:48.380,0:02:49.200
just thinking of yourself

0:02:49.200,0:02:50.760
as a little caterpillar

0:02:50.760,0:02:52.410
and this crisis is your cocoon

0:02:53.600,0:02:55.023
The question is

0:02:55.023,0:02:56.627
what do you emerge as

0:02:56.627,0:02:58.277
Do you emerge as a victim?

0:02:58.277,0:02:58.987
You know

0:02:58.987,0:03:00.987
"that the world did that to a man"

0:03:00.987,0:03:02.047
and "the capitalist are crooks"

0:03:02.047,0:03:03.627
"the rich are bastards"

0:03:03.627,0:03:04.697
and all this stuffs

0:03:04.697,0:03:05.307
or do you say

0:03:05.307,0:03:06.897
"Oh"

0:03:06.897,0:03:08.207
"this is the best thing that ever

0:03:08.207,0:03:09.447
happened to me"

0:03:09.447,0:03:10.847
The same as my health

0:03:10.847,0:03:14.197
I am groundzero for the coronavirus

0:03:14.197,0:03:15.207
all that does

0:03:15.207,0:03:17.907
is inspire me to get healthier

0:03:17.907,0:03:19.057
You're either going to

0:03:19.057,0:03:20.817
get healthier and wealthier

0:03:20.817,0:03:22.177
or your going to go bust

0:03:22.177,0:03:23.197
Your choice

0:03:23.197,0:03:24.957
It's between your ears

0:03:24.957,0:03:25.797
your heart

0:03:25.797,0:03:26.407
your body

0:03:26.407,0:03:27.107
your mind

0:03:27.107,0:03:27.627
your spirit

0:03:27.627,0:03:28.797
your attitude

0:03:28.797,0:03:29.807
This could be the best thing

0:03:29.807,0:03:31.037
that ever happened to you

0:03:31.037,0:03:32.087
Physically

0:03:32.087,0:03:33.177
mentally

0:03:33.177,0:03:34.007
emotionally

0:03:34.007,0:03:35.007
spiritually

0:03:35.007,0:03:37.115
If you turn out to a butterfly

0:03:37.115,0:03:38.845
or somebody will step on you

0:03:38.845,0:03:40.277
like a little worm

0:03:40.277,0:03:41.237
it's your choice

0:03:45.558,0:03:48.745
Now if you are in trouble today

0:03:48.745,0:03:50.345
my messege is not so kind

0:03:50.345,0:03:53.633
this is hard talk not happy talk

0:03:53.633,0:03:55.673
The crisis is in your head

0:03:55.673,0:03:57.683
now that's the bad news

0:03:58.761,0:04:00.481
The good news

0:04:00.481,0:04:01.911
you can change the crisis by changing

0:04:01.911,0:04:03.471
what's inside your head

0:04:03.471,0:04:04.611
and so I'm doing

0:04:04.611,0:04:05.531
I'm hating brag

0:04:05.531,0:04:08.353
but I'm doing extremely well financially today

0:04:08.353,0:04:10.433
because as I was warning everybody

0:04:10.433,0:04:12.242
this crisis was coming

0:04:12.242,0:04:14.842
but it would be irresponsible of me

0:04:14.842,0:04:17.032
to warning people of the crisis

0:04:17.032,0:04:21.032
and not personally make changes myself

0:04:21.032,0:04:22.202
So the good news is

0:04:22.202,0:04:23.502
the crisis in your head

0:04:23.502,0:04:26.302
the bad news it is in your head

0:04:26.866,0:04:28.910
the most important thing you can have

0:04:28.910,0:04:30.470
not now is not job security

0:04:30.470,0:04:31.940
but meaningful work

0:04:31.940,0:04:34.050
So you and I don't need the money

0:04:34.050,0:04:35.392
but our work is meaningful

0:04:35.392,0:04:38.039
and it's our meaningful work

0:04:38.039,0:04:40.182
that get's us through the hard times

0:04:40.182,0:04:41.642
So the good news is

0:04:41.642,0:04:43.142
my company is sold out

0:04:43.142,0:04:44.928
we can not keep up the product

0:04:44.967,0:04:47.807
The bad news is supply chain shutdown

0:04:47.807,0:04:49.927
but that's a good problem

0:04:49.927,0:04:51.537
We have tons of cash

0:04:51.537,0:04:52.887
I've gold I've silver

0:04:54.581,0:04:57.911
I do have challenges in the real estate market

0:04:57.936,0:04:59.416
but that's going to make me stronger

0:04:59.421,0:05:01.411
that's my own attitude I can have

0:05:01.411,0:05:03.021
otherwise I just cry and said well

0:05:03.021,0:05:05.174
the government should take care of me

0:05:05.174,0:05:07.594
I need a bailout money understandable

0:05:07.594,0:05:08.864
So what can I do?

0:05:08.974,0:05:10.580
I'm one of them. What do I do?

0:05:10.580,0:05:11.970
This would go back to employee

0:05:11.970,0:05:13.880
self employee business owner

0:05:13.880,0:05:15.870
It's investor like go find the business

0:05:15.870,0:05:16.930
go start the business

0:05:16.930,0:05:18.980
go reposition yourself career-wise

0:05:18.980,0:05:20.950
you know is there a

0:05:20.950,0:05:22.940
1-2-3 steps processes on

0:05:22.940,0:05:24.790
what I can do to be prepared for it

0:05:24.790,0:05:27.510
I have a friend in Panama

0:05:27.510,0:05:29.010
He has avocado farm

0:05:29.800,0:05:31.470
So he say it again

0:05:31.470,0:05:32.890
Panama growing avocados

0:05:32.890,0:05:34.730
he says good people have to eat

0:05:34.730,0:05:37.420
Another guys friend of mine grew blueberries

0:05:37.420,0:05:38.620
but another friend of mine

0:05:40.868,0:05:42.658
he is from Seattle excuse me

0:05:42.658,0:05:45.208
he had a big house his kids all move out

0:05:45.208,0:05:46.808
so he converts the kids bedrooms

0:05:46.808,0:05:48.448
into one-bedroom appartments

0:05:49.908,0:05:50.978
So he put a ktichen

0:05:50.978,0:05:52.308
and he put a toilet

0:05:52.308,0:05:54.568
inside a little bedroom

0:05:54.568,0:05:56.718
and so he know rents out four bedrooms

0:05:56.718,0:05:58.748
he is making more money today than before

0:05:58.748,0:06:00.058
because a lot of workers

0:06:00.058,0:06:01.228
commute to Seattle

0:06:01.927,0:06:02.897
So they come in

0:06:02.897,0:06:03.683
they check in

0:06:03.683,0:06:05.038
the come in on Sunday night

0:06:05.038,0:06:07.088
they check out on Saturday afernoon

0:06:09.868,0:06:12.298
So the point is everybody can do something

0:06:12.298,0:06:13.458
but you got to figure out

0:06:13.458,0:06:14.978
what you going to do

0:06:20.401,0:06:21.951
Well the reason

0:06:21.951,0:06:23.381
the rich don't work for money

0:06:23.381,0:06:25.261
is no 1 expensive tax

0:06:25.261,0:06:27.301
See there are 3 kinds of income

0:06:27.301,0:06:28.051
Earned

0:06:28.051,0:06:28.941
Portfolio

0:06:28.991,0:06:29.861
Passive

0:06:30.582,0:06:32.392
So earn income is if I get a job

0:06:32.392,0:06:34.082
it's earned income

0:06:34.082,0:06:35.942
If I am a doctor or programmer

0:06:36.372,0:06:37.482
that's earned income

0:06:37.482,0:06:39.092
because I'm working for it

0:06:39.512,0:06:42.328
If I buy us if I buy let say apple for $10

0:06:42.328,0:06:43.682
and sent it for $20

0:06:44.448,0:06:45.448
that's a

0:06:46.457,0:06:47.337
porfolio income

0:06:47.848,0:06:48.868
capital gains

0:06:49.535,0:06:51.985
but passive incomes which is cash flow

0:06:53.771,0:06:55.101
It's never tax

0:06:55.101,0:06:56.031
So it's not

0:06:56.031,0:06:57.981
and that's all these guys are screaming

0:06:57.981,0:06:59.441
right now in America

0:06:59.441,0:07:02.671
"Tax the rich" I said goodluck

0:07:02.899,0:07:05.129
because most of those guys complaining

0:07:05.129,0:07:07.028
they don't know those 3 kinds of incomes

0:07:07.028,0:07:09.738
and the rich don't have jobs anyway

0:07:09.738,0:07:11.538
they have assets

0:07:11.701,0:07:13.571
and so the average small out there

0:07:13.571,0:07:15.761
poor guy you know sent the kids to school

0:07:15.761,0:07:17.511
they don't learn this

0:07:17.511,0:07:18.961
So that's why a fake because

0:07:18.961,0:07:20.341
you were talking about it

0:07:20.341,0:07:21.671
It's a newspaper article

0:07:21.671,0:07:23.011
about Jarred Kushner

0:07:23.011,0:07:25.871
and he explained how the Trumps and Kushner

0:07:25.871,0:07:26.921
don't pay taxes

0:07:26.921,0:07:28.321
and make million of dollars

0:07:28.321,0:07:30.611
and the reporter couldn't understand him

0:07:30.611,0:07:32.468
because they're not

0:07:32.468,0:07:35.541
our school never teach that 3 types of income

0:07:35.541,0:07:36.321
and they judge him

0:07:36.321,0:07:37.621
and say they're wrong

0:07:37.621,0:07:38.356
and it's cheating

0:07:38.356,0:07:39.986
and we see it over and over again

0:07:39.986,0:07:41.536
Amazon not paying taxes

0:07:41.536,0:07:43.006
What do you say to people when they come

0:07:43.006,0:07:44.676
to say "Robert, that's not fair."

0:07:44.676,0:07:46.956
"It's not fair. They aren't paying taxes."

0:07:46.956,0:07:49.036
Well there are always 3 sides to a coin

0:07:49.036,0:07:51.066
you know, heads, tails and the edge

0:07:51.807,0:07:52.606
you know

0:07:52.606,0:07:54.000
So which side of the coin on you are?

0:07:54.000,0:07:56.043
From my side it's fair

0:07:56.043,0:07:57.478
But this is the difference

0:07:57.478,0:07:59.438
everybody can do it the same thing I do

0:07:59.438,0:08:01.723
The Tax Laws are for everybody

0:08:01.723,0:08:02.743
They don't say

0:08:02.743,0:08:05.073
"well the tax is only for the rich" No.

0:08:05.073,0:08:07.973
The Tax Laws are for everybody to use

0:08:07.973,0:08:11.003
if you've the right financial education

0:08:11.003,0:08:12.773
And the reason I'm advocate of

0:08:12.773,0:08:13.733
financial education

0:08:13.733,0:08:14.983
without that education

0:08:14.983,0:08:16.923
You have to pay taxes.

0:08:16.928,0:08:19.218
You see very few people will buy

0:08:19.218,0:08:20.228
what I do

0:08:20.952,0:08:23.622
make a million of dollars pay zero tax

0:08:24.485,0:08:25.516
that takes

0:08:25.730,0:08:26.992
And my rich dad taught me

0:08:27.002,0:08:27.945
that playing monopoly

0:08:27.945,0:08:28.942
That's how it turns

0:08:28.942,0:08:32.650
You need 4 green houses and 1 red hotel

0:08:32.650,0:08:34.600
or the Mc Donald's one. I write about that

0:08:34.600,0:08:35.510
Mc Donalds Ray Kroc

0:08:35.510,0:08:36.940
Yeah

0:08:36.940,0:08:38.450
Mc Donald's is in the real estate business

0:08:38.450,0:08:39.520
So they sell humbergers

0:08:39.520,0:08:40.670
but they but real estate

0:08:40.670,0:08:41.950
so they pay no taxes

0:08:42.666,0:08:44.446
You know this guys Bezos

0:08:44.446,0:08:46.296
he is 16 billion dollars

0:08:46.296,0:08:48.816
how much taxes he pays under 16 billions

0:08:49.791,0:08:50.571
zero

0:08:51.495,0:08:52.715
And that's all legal

0:08:52.715,0:08:53.705
Anyone can do it

0:08:53.705,0:08:54.615
Everybody can do it

0:08:54.615,0:08:57.145
But everyone. Most people lack the education

0:08:57.145,0:08:57.775
Correct

0:08:57.775,0:08:59.575
So Jarrod learn about money

0:08:59.575,0:09:00.425
when he was a kid

0:09:00.425,0:09:01.255
by watching his father

0:09:01.255,0:09:03.235
by watching his people in real estate and said

0:09:03.235,0:09:07.155
Wow. Not only you get to make the money, you get to keep the money.

0:09:07.155,0:09:09.185
That's a big problem a lot of people don't understand

0:09:09.185,0:09:11.992
Look at how much money I make but how much do you keep

0:09:11.992,0:09:15.585
Because it can be half [The tax that you pay].

0:09:15.585,0:09:19.184
And so when you always say this is the law. The law is true for every citizen.

0:09:19.184,0:09:21.902
You can do it but most people just don't do it.

0:09:21.902,0:09:24.302
Sometimes like you said they don't have the education

0:09:24.302,0:09:26.312
Because you need to have a plan

0:09:26.312,0:09:28.732
If you going to do risky thing

0:09:28.732,0:09:31.864
Well it's not risky. I mean to me what's risky is having a job

0:09:31.864,0:09:33.648
and paying taxes. [Yeah]

0:09:33.648,0:09:36.688
And saving money because they're printing.

0:09:37.590,0:09:38.780
You know

0:09:38.780,0:09:40.250
That's the worst thing of all.

0:09:40.250,0:09:42.070
That's why does fake money

0:09:43.457,0:09:44.447
fake teachers

0:09:44.447,0:09:47.227
The teachers will never. They don't know it. [Right]

0:09:47.227,0:09:48.007
And fake assets.

0:09:48.007,0:09:50.327
Because Wall Streets or the city of London

0:09:50.327,0:09:52.917
or Lehman Brothers or Goldman and all. They are not going to tell you this.

0:09:54.557,0:10:26.313
[Music]