The financial markets across the world are once again on edge after the recent collapse of Silicon Valley Bank and Signature Bank in the United States. The impact has been felt across the leading stock markets globally with banking institutions facing the threat of a cascading effect.
Reportedly, analyst and author Robert Kiyosaki, known for his bestseller “Rich Dad, Poor Dad”, has now predicted that Credit Suisse, one of Europe’s largest investment banks, is the next institution at the risk of collapse.
Robert Kiyosaki believes the US dollar will weaken, putting the country in “serious trouble.”
Kiyosaki, who had correctly predicted the 2008 Lehman Brothers’ collapse, cites the bond market as the root of the problem and warns of a weakened US dollar.
In a recent appearance on Fox News show, ‘Cavuto: Coast to Coast’, Kiyosaki warned that the bond market is much larger than the stock market.
He added that “the Fed is up, and they’re the firemen and the arson.” He said that the US dollar is losing its hegemony in the world, and that the Fed is “going to print more and more and more of it,” to keep it from sinking.
Kiyosaki believes the US dollar will weaken, putting the country in “serious trouble.”
The Rich Dad Company founder also expressed his concerns about the “perfect storm” brewing due to the bond market crash and the upcoming retirement of his generation.
He expressed concern about the current market environment and the impact it may have on pension plans and individual retirement accounts (IRAs).
Kiyosaki warned that the American taxpayers will bear the brunt of bank bailouts in the event of a financial crisis.
He further singled out Credit Suisse as the next bank to experience significant financial troubles. His prediction came hours before the Swiss bank announced “material weakness” in its reporting procedures for fiscal years 2021 and 2022.
The bank had delayed publishing its annual report after US market regulator, Securities and Exchange Commission (SEC), wanted an assessment of the previously disclosed consolidated cash flow statements, according to a CNBC report.
Credit Suisse has faced numerous problems– a series of crises, legal controversies, bad press, and scandals– in recent years. In January 2022, its chairman Antonio Horta-Osorio resigned after being found in violation of COVID norms.
In February, Credit Suisse was thrust into the spotlight due to accusations that it had clients who were human rights abusers and sanctioned businessmen.
In June, Switzerland’s Federal Criminal Court convicted the bank for failing to prevent money laundering by a Bulgarian cocaine trafficking gang. October saw the bank reach a settlement worth €238 million to wind up a French probe regarding an alleged money laundering and tax evasion scheme between 2005 and 2012.
Its exposure to the implosions of US asset manager Archegos and UK firm Greensill have not helped.
Kiyosaki’s prediction is a stark reminder of the risks and challenges facing the global financial system.
As the financial markets become increasingly volatile, Kiyosaki advises exploring or investing in silver and gold as a way to protect oneself against economic uncertainty.
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