« The Way I Heard It with Mike Rowe

254: What the Hand Does the Mind Remembers

2022-06-07 | 🔗
Robert Kiyosaki talks about how he voluntarily got into Vietnam, how he almost got kicked out, and why he wrote his Capitalist Manifesto to combat Marx’s manifesto.  
This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
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Its episode number two hundred and fifty four of the way. I heard it and this one is called what the hand does the mind remembers, assuming ok with that title check, the great quote: yeah, it's absolutely good. We russell with calling it I'm alive today because of what gets dead Ben kept eating I'm alive today, because dead men kept fighting he's a guy who fought in vietnam. Believe it was shot down as well. He flew at attack helicopter robber q, saki has a lot of stories and you're gonna. A few of them in this conference nation. He, of course, is the author of what many claim to be the best selling financial book ever enriched add poor dad you read it shot back in two thousand I read it in the late nineties
For me, it really drew a bright line, not just between being an employee versus bay, an entrepreneur, but an employee versus freelancer, rich tat, poor dad became part of I explanation for why I love freelancing and gigging as much as I do. It introduced me to a way to think outside of the box. I mean what his. Dad did for him and his best friend was too. But up their minds to make them think like entrepreneurs inside of employees make them think outside the box of different ways that they can make money and they played monopoly to learn about money, which, I think is pretty crazy. Death is rich, dad insisted they play monopoly and, to this day, roberts Is it informed a lot of what he did in the world of real estate? You know have asked him, because I thought about this.
The game. Where you roll dice. I mean really gonna base your entire financial model on the role of dice, but the truth is the guy of life is a roll of the dice and what you're playing the cards. You got or doing the best with the snake eyes that pop up he's advocated an interesting path, and I learned some things. About the guy I didn't know, and in particular I was struck by the degree to which he cares about the future. This country he's deeply deeply concerned. And the degree to which he does not care about the offense he might cause by the things he says as this is a seventy five year old man with over a billion dollars in debt and far more in assets who has always over the of his career distinct
himself by saying controversial things with regard to the conventional wisdom, surrounding basic economics debt in particular Savers are losers, as a quote from yes, yes, members are losers, he's not afraid your house is not an asset. Eight now Britain, I don't agree on everything economically, but look it's none of my since the guy's, a good julian air and he's done great things for a lot of people, including me, but I gotta tell you his new book, is not necessarily a financial book. His new book is an answer to a very famous book written over a hundred years ago by Karl Marx called the communist manifesto. Key Isaak is written, a book called the capitalist manifesto, and he sounds the alarm bells. He cries emergency. He believes that our countries
in the wrong direction and he simply is not pulling any punches. I was surprised, ized by a lot of the things he said. I didn't know want to argue honestly because I was so. I was so surprised to hear a guy, a guy who trying to sell a book doesn't talk. A robber key isaak, use about threat, hawk. It's not about cell in the book. It sound out to me about saving the country. In his mind, it's not I'll leave you with this he's a fourth generally sean, japanese, american, whose relatives were imprisoned in cuba fournier during the second world war. He's a guy. Who enlisted to fight in vietnam join the marines learn to fight a gunship a pilot of a helicopter court martial.
Adventures and misadventures one after the next built, a giant empire wrote one of the most popular financial books of all time and today, in the conversation you're about to hear speaks with the level? of partisanship and candor that I've honestly, I didn't expect but he is who he is, he believes what he believes he's, earned the right to be as candid as he wants he's on his way pilates class right now, because one of the last things he said to me was I'm not flexible, which would bad title either also Another good observateur, but it looks like you still in good shape. It's not a fun mentally optimistic look at the immediate future, but he is a true patriot, believes what he believes in asia
right to say whatever the hell he wants, because one thing I can tell you for sure that he believes that I think you and I can concur with what the hand does the mind remembers rebecca saki thanks to my friends over at edmunds, for sponsoring this episode. Although I should tell you that what you're about to here is less of a commercial and more of a public service announcement, because true There has never been a more expensive time to purchase a motor vehicle than right now, so please go to edmunds, dot, slash appraisal before you boy, yourself, your next vehicle and find out what it's worth. You might be surprised. This is the most important thing you can do before you buy or sell a car or truck where s. V or anything on wheels. When go to edmunds, dot com, slash appraisal. You get an instant
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booth, like the one I'm in right now and I read copy for a book called rich dad poor dad did the voice over We're infomercial for a book, I would read years later- is that right, yeah wanna overstated, but I'm pretty sure I'm the reason that book with such a success, It's all yours, man, you're welcome! Thank you, don't mention it. Thank you for doing this. I know you're busy, you ve got a new book out. You ve got your radio show. I have so many questions and forgive me, but it seems like the only place The start is the place where we started with rich dead. Your story, let me just ask you this: is there anything you don't want to talk about an open book, I'm doing a project that David sure we're going.
Do, I shall, with my friend, lieutenant after all, Jack Bergman. Congressman bergman from upper michigan I myself am Patrick and the reason interesting is because we all served in the us military Bergmann and I were lieutenants on an aircraft carrier and I'm very proud, to say that I got kicked out as a lieutenant and became a lieutenant general and we're still best of friends. A comment to me was says: kiyosaki european new may? Is you got caught and I don't? Isn't it funny, though, how those bonds forest all those years ago really go away. We ve had a lot of folks who have served on this. Podcast and at some point in the conversation that always comes out, you did
time back nearly seventies. You fluid attack helicopter right, Vienna erect. I first went to norman sixty six as a midshipman student for their Khatami. Then the vietnam war was still on when I graduated in sixty nine, and I was draft exempt, because As I worked for standard oil of california and draft exempt spelled all I l you didn't have to fight, and my conscious got to me and saw was sailing for standard oil up and down the california kosovo tanker, and I said I can't stand it sighed. Ma am said I do in two years later I was flying and get now so did you go in through the marines or through the merchant marines. The when academy give you multiple commissions, so why there's an anson which is easily come running. To a lieutenant but the biggest
I went there for a third mates license, so I can drive tankers oil tankers, and so my background is oil and I was up on the alaska pipeline- yo dragon oil out of think Prudhoe bay or something so today when Biden cut off and cut the keystone XL pipeline, I went nuts I own oil wells. I don't own stocks, you know when he did that the price of oil, went from thirty dollars a barrel to one hundred and thirty and he's killing us, because it's inflation, that's killing us and it's killing the working guy. Killing us. So I got rich I'm getting richer today, because oil is now a hundred and fifty in a barrel. What is crushing the working class guy? I realise how polluted
we fraught all of this is- and I get at this point in your career- you're- not terribly concerned You'Re- going to break a few eggs you're going to make your point you've heard we've done that in your new book But I will say this: whatever views are on the environment and whatever your concerns are for the genuine health of the planet. I truly understand that, but make energy the enemy to make fossil fuels the enemy. That seems to me well, it seems like you write a lot about unintended consequences vera to be some huge damage. Unintended consequences villas flying the very thing we rely on We're all environmentalist, if none of us say no, I'm going to pollute the air, but until you come up, something better, don't kill us too. You know. Years ago, on a sorry bike before we move on, I think you're talking into the wrong side of them
profound tournay, Mozart, none of my where the light is talking to that part or you go now just where you gotcha. Now you sound kind of hot back off just a little bit there you go. That's because everytime you went over to the left side, it got better and now I've figured it out. I dunno why it's like that, but yeah. Allow me to twist your concern into a perfect metaphor as was going over to the left side. Robert was drifting over to the right, it seems like our whole country, is mike great. It seems to me, like Everybody has such a deeply held opinion and everybody has permission to share it, but we're just in past each other in so many different ways. Good for you, see the way I brought that around an awkward moment turns into a metaphor for the podcast we're all off mike
I'm amazed and delighted up. What do you think robber Are we blowing ourselves up with this whole? relationship with energy. I think I saw a trojan horse. They got environmentalism into schools and I'm an environment where all environmentalists, none of us- want to kill the planet, so. They go on, as were environmentalists and they speak out against. Capitalism is a bait and switch, but I think the biggest thing that really pisses me off is critical race theory. You know what really disturbs me, I'm japanese, fourth generation and they say that america is the systemically races country. How dare they teach kids that? How dare they teach us that joint makers
my family was locked up in california in and camps, but not racist is most most disgusting thing. I've ever seen to split us bite my race first, I agree said Let's go back a little bit, then I think it will be important for people to understand a little bit of your origin story. Your its generation japanese, as I recall, in the foreword of the first book that I helped you sell your welcome. He got accent, that's what this whole thing is about. I'm going to collect a twenty two year old commission. You grew up in hawaii, I mean. Obviously, I think most people know you had two dads as it were, but if you could just walk me through short, strokes from then to your server. In a military. I'd think that would inform a lot of what you have already said. Well, if I could, in a get back on what you're doing. There is say, congratulations and all that is you speak for that
man and woman who think with their hands german, their work with their hands and thus the backbone of the world economy. And what's happening as our damn schools pump out this pencil heads. Who will want to why collar job, because both my dad's required me to work. My poor dad says you're completely worthless, I'm not going to give you an allowance, so I had to go. Do something you know. I meet kids today who thought work so I went to pick pineapples, and so I but my summers, picking pineapples like a labor with all the other guys and then my rich, help me work construction at the work for him for free and construction, so he would teach me about money and airport expressed a free education. Today,
as my rich dad says. If you don't work for me, I'm not going to teach you so what the logic behind, not paying you to work. Construction Does he didn't want me I'll? Be a pencil pushing white collar guy what should it be? An employee now given that it will just be a man who didn't work with his hands. He says your hands These are intelligent things, you know what I mean, look at approach all four. This is their intelligence here right or we have too many people, come out of school right now they have a college education, they been indoctrinated into marxism and they you have all the answers, so the teacher tells them that, where a racist country they just parrot, they don't ask questions. They have worked in the field
One anyone Chavez was pushing the united farm workers and all that I was with them. I pick pineapples for two summers: holy mackerel. I meet some interesting characters. I wasn't a rich kid. I was in part of their kids, so I get to meet these kids maize. Men, Who are taking me out of wing and teach me to pick pineapples, and I, when I worked construction dry wall and plaster powers in framing. I learned how to work with my hands and that's why I command you. You give credibility to the people that think with our hands. To be honest with you, We kind of touched on an earlier with the energy thing: I've tried two never grow resentful of anything that I depend on, because there is a tendency, I think it's the fault in our stars we resent the people
or providing us with energy, because we need the energy and were tortured by the fact that may be were somehow participating in the demise of the planet. Dirty. Jobs was just an attempt to say: look, you can separate the pineapple from the construction Can't separate the hand. From the head by more than You can separate heads from tails. You need. As a society, we need to be able to do both. Credit as an individual? It seems like you have also done both as well. Much of what you say is a duality right. Yes, it's, This or that it's you need both rio montessori as a great school system. She says what, then and does the mind remembers. That is powerful.
Because I learned to bear investor playing monopoly I'd sit down. I want, oh, my god, four greenhouses. One read hotel. And had my rich dad took men shall may his hotel called a high it regency today down on the main island right. Why can t beach. A man with no education did. His centimeter work, where the clean PA and all the dirty jobs. In effect, clean, roms and all this stuff And then we got older, the were constructions, I wore a bag, a belt, and all this stuff and pounding nails and solid both does want to make sure I could work and that's the difference. When I look at my brothers and sisters, I was coming into force labour.
Look. If you don't know, what's good for you, you can only hope somebody around you does the thing I took from your book. Was that you learned some valuable lessons from your poor dad from your rich ad, but in the end you decided in a very matter of fact way that, given a choice, you'd prefer to be wealthy and so you are Is that an over simplification, but more than that, it was one I could sense the gap between rich and poor increasing. And everything my father was telling I poor dad was was gonna. Make me poor, get safe, secure job yeah I've got around it easy, I'm gonna follow him. He was actually a marxist costs, as mark said.
The purpose of communism is the abolition of private property, so he was anti rich and rich. Dad owned a lot of property And today you have this: was our group clash schwab, something Davos here, you're, nothing and be happy about it. That's quote marks your new book starts with some terrific I was so glad to see the old khrushchev quote in their because It was one of those moments when we didn't have to read between the lines were react at ten minutes. I mean hit me with that, But if you would Robert because he seemed to spell it out pretty simple- I don't have the purposes sunday of cares. What european under communism, something like that I'll pull it up? He really walks you through it, I mean I hadn't seen it in years chuck, but we were talking about this earlier. I've got a cop,
here. It is right here you americans are so gullible. No, you won't. Accept communism outright, but we'll keep feeding you small. Mrs of socialism, until you're finally wake up and find you already have communism, we won't have to fight you So we can your economy until you fall like overripe fruit into our hands. Nikita Khrushchev and fifty nine or you worried there were a frog in the boiling water. The khrushchev was right, more than that it wasn't sixty five on migration from high school. I went to school in new york, king spite roach main academy, economics teacher, didn't have myriad cans and Adam Smith, and all that he had me read, marks and hitler and Stalin. He says you got no your enemy, I'm vibrating communist manifesto. Only fifty pages written eighteen, forty eight most popular books have
written- I'm mean there's like all my god, my family's communist, So what do you do with that? You do with the realisation like that. How does your life change? I join them rain car went to vietnam maser twice to tours. One was a tour. One was as a midshipman and they put out a bomb carrying a victory ship and we carried bombs from part chicago california to cam ranh bay, vietnam. Thus, when I saw the war, I went. Oh my god. This communist manifesto is coming true, so it was from sixty five to sixty six. That's how fast it was for me. I read communist manifesto sixty five in sixty six, I'm envious
now, I'm going all my god. Oh my god. When did you get out? You were there through the early seventies right graduate from the king sent the sixty nine. That's when I say I Adam, I got hired by stander oil of california chevrons shopping, some driving oil tankers making about fifty thousand a year which pretty good and sixty nine in nineteen sixty nine half a million dollars. A year today how you could buy two houses for that, and then the war got to me. I yeah, we all have friends who went, one guy didn't come back and they dropped it. People who shouldn't go if you know what I mean this guy name was. La presty and the rumour comes back his lieutenant shot him because he ran first sign of fire. The kid turn and ran to the bullet came from the back and is said he should never have got
and that's what I said: I'd better go summer. Time in the living is easy unless of course, you're trying to hire p in which case you're, probably not relaxing in a hammock, as you should be sipping a frosty beverage and reading jack cars latest best seller. Instead, you're probably tearing your hair out pouring through a stack of disappointing, resumes trying to navigate the most challenging labour market in memory. Do yourself a favor and post the job for free at zip recruited outcome. Slash row, let them do the work for you. Zip recruiter has a complete suite of tools that makes it easy to filter, review and rate your candidates, Consequently, four out of five employers who post on unzip recruiter, get equality candidate within the first day. Look if you're too. The higher. The numbers are not on your side right now. There are eleven
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side, the family they live in California,. So they love than any other fresno era, the valley there I had everything take. So why now, when comma talks about reparations, I get lower hot because our family lost everything. You never got anything back. Did the japanese americans get something back, I don't know my cousins guys. My age became attorneys just to fight to get the land backside on a bigger, how much they got back and then today we want to give this reparations. It's not it's, just though extraordinary I could understand if my parents or grandparents had been incarcerated against their will unjustly, how that I persuade or push me into a place of resentment and even if it did
Push me into a place of resentment. I don't know that. I have it within me to actually volunteer to fight for the very same government and the very same country that did that thing. So the question is what, if anything, did your rich dad or your poor dead? due to instill in you that absence of self pity. Well, my family had during world war, two at five uncle's fight cuz, our heritage is samurai, and so I had five uncle's fifty three and europe into against the japanese in the pacific and what I talked to my uncle's, who came back so the four hundred and forty s was the most highly decorated infantry battalion in us history there in north africa and ITALY. So they came back and it kicked ass.
They save the loss battalion, the texas battalion and all that stuff they opened up dachau. So I am growing up. I talk to my uncle's that our pushed on here this sub to you and all five uncles came back, which was amazing and then to fought against the japanese. Size under the dna in One apple got captured and he was on the bataan death march go and what they did to him MIKE know what, when he went to a p o w camp castrated him. So is that because he was of Jeff, beneath descent, and they were extra special pissed. He got into an argument with. They are not an argument, but the japanese harassed him because he was japanese.
So it just made him more angry, the ultimate punishment, the guy publicly castrated to grief. So you mentioned the samurai. I dont know a lot about it, but from what I recall the defining attitude in well anyway, was that the samurai would go in already believing he was dead. Yes, yes And so, if you truly embrace that, I wonder if you could talk about that night. Does a soldier, but as investor and as a citizen and as somebody who is just trying to navigate these extraordinary times. What might we learn from the samurai? While I think it's kind of a culture of the japanese also is the culture of magic. Nation- and we have no financial education in schools and saw her
to find out when I came back from here, now I'm going to what are they not teaching us am I know more than my peers and ask why rich dad port it came up has already had a rich dead. I knew about money than most. I went from my mba programme returning our station back in hawaii rancorous station convoy I want it for my m b a program, but of course I got sped on and all that stuff. You know but I'm m b, a program said this. Guy has no idea what he's talking about Cells, a blinding the blind, genuine hallway macro. Sorry, but when you say of course I got spit on, I think we need to remind some of our younger listeners, that returning home from the second world war was very, very different thing than returning home from vietnam correct people I've read about it or heard some stories. Let me first of all,
you enlist to fight for a country who incarcerated your relatives. Secondly, you return from that fight. Your fly an attack helicopter and you are literally egg and spit on again. That doesn't seem to turn you into a bitter angry, broken person. But it must have done something to you. It must I've done something robert. What did it do. While is a guy David Coggan sees a navy sale short, he writes suffering lays to something so the longer you can endure the suffering. You find your greatness in your suffering. I think that was missing. Our lot of young people know their coddled ever by gets a trophy. My friend was a lieutenant general now congressmen. He says about ten fifteen years ago. They couldn't find marines.
The young men are strong. Do you know how many people you're pissing off these days? Robert? I hope a lot. Okay, I'm really getting a sense that you wrote what you wrote decades ago, and you went on this crusade of sorts to inspire a level of entrepreneurship. Yes in people, and now it just feels. You're looking around going safe spaces. What what are you talking about a safe space we need an unsafe space? We need an uncomfortable space. I haven't read anything that you ve written that led me to conclude that, but just in the last twenty minutes, it's clear that your looking around and wondering who, My cheese what's changed, what's changed in our country
What can I say one more thing that disturbed as I came back from vietnam and stuff I got discharges. Actually I got court martialed out twice. What would your disciplinary problems oh really hard to believe I had women problems, yeah dude! while the curious back that air I had marines had no hair. Every guy who was a civilian, long hair, I was having trouble picking up. Checks are waikiki, says I want one advantage: do I have visited disco score. I remember I don't like John from alter anything. Have no hair size go up these women. I say Don't go for our copyright. I bet that worked worked like a charm
but the court martial near the other point. The government found out officials. Large misappropriation, a garment vehicle, they left off, fly drunk on top of it one hour at the somewhere so of the best selling financial book of all time, Is telling me that once upon a time, he'd have a few pops fire a multi million dollar government helicopter and invite. Girls on a daily basis, Yes off you went for some reason our leaders looked askance at that. I was unlike clunton at home. I didn't do it in the white house. I did on the beaches of hawaii,
I'm just trying to imagine it your flying around hawaii you're, like you know, that's a pretty beats down there. Maybe will set this thing down for a couple minutes and then would, spread out the picnic table cloth In in open, you know a nice basket with fruit and wine, and next thing I from here to eternity starring robbery eyesight now and then I got caught so how'd. You get caught, I dont know I came in, Can we not was a sunday afternoon I'm taxing in and mps come around manner and I'm in handcuffs going off was laughing when they opened the door of my huey. Firstly, that fell. With beer cans, Secondly, about fella was me
and then some girl shaking sand out of her hair who, in a night we had well then not all god has got worse from, thereby anyway it was fun. I do it again. This is kind of amazing, yet the bigger Wasn't I got thought about halting this is a mighty k. I will look at it like I hotel my throat investment and They send the sky captain abrams after me, prosecutor that guy left no stone unturned. And I was lying through my teeth. Why, through my teeth.
So viola, I go in there as such, so I sat down and said captain I'm going to tell you the truth, the whole truth and nothing but the truth. So he depose me three hours. I think I lost ten pounds doing it and he said thank you you're free. He just wanted to hear the truth. The whole truth yeah. So I did. You will void the court martial because he let me go Like that was as clear an example, the truth will set you free. So that's I'm up front with the everybody, not everybody, and I do my best to not hide anything well. So I think the first thing you said to me was I'm an open book and your books are certainly open, and they have certainly been read by a lot of people. But I m super interested about this latest book.
I'll just say this. Plainly as I can, you didn't have to write this. Obviously you don't have to do anything. You don't, wanna. Do you ve paid every amount of dues? A man can pay in this country and more and you can sit back Very comfortably and dispense whatever financial advice you wanted Benson, just call it good you're affirmatively poking the bear. I guess I just want to ask you: why was the bear as the fed wall street and the treasury And seventy four, when I got out of the marine corps honourably, thank god. I think him
it was called arrest, saw employee retirement income security act. Today, known as a four one k, and the moment I saw that I said my generation, the boomer generation has just been set up, so you look at what's happening today in june of two thousand twenty two stock markets crashing. How many baby boomers are now sweating their retirement? So I could see that coming if you're on me, I was like, oh my god, so they started all these so called secret, It is like index funds, mutual funds wherever they do and now my generation, our generation sky. That market goes down the gun at the pump more money to save him, plus social security plus medicare. So the biggest expense of america today is a government run by those white collar,
workers, and so how do you advise people who want to provide their future. I think I know the answer. I think I understand philosophy perfectly where you're coming from but in that environment with a market crashing with inflation soaring with supply chain issues everywhere and with a real lack of trust with the whole country off MIKE? As it were, either guess: okay, so What is the solution? can Joe six pack due to affirmatively bide for his family in the coming weeks in years. That's a great questions at others too late, but an
I do not have sex. I crave the cash law boardgame again, because what maria montessori said, but the hand does the mine remembers, and the casual boardgame has three financial statements in it. Anko statement balance sheet statement of cash flow and then the name of the game is cash flow is: can you control your cash flow and sullen? Somebody loses our job, as you know that upper house, a mortgage, the cash sucks out fast. So the most important lesson is: how do you control your cash flow and that's why I cried the cashflow board game in the board. Game didn't sell so ninety seven or don't reach that part in that was a sequence. You wrote rich dead, poor dad essentially as a marketing brochure for a board game, exact words, a brochure or pamphlet. That's the most extraordinary thing. I've ever heard women. Let me
say it a slightly more gobs Mackey way, the best selling financial book of all time was written as a marketing device to sell a board game that nobody wanted to play. Ok, so now you're bringing the board game back. The solution has been that we have cash for clubs all over the world. It's just not well known, well, Let's change that, and because I'm starting to see a theme you're telling me the original standing for financial wisdom, began by playing monopoly yes and that led to a cash flow game right and so as a guy who cross out of an attack, helicopter and beer cans proceed him as a guy who's poking the bad debt.
Do you look at so much it feels like you look at out of, what's going on as a game to be played and one that also feel It's like you're, looking at what's going on in the country is just deadly serious business. Can it be both Sarah capitalist manifesto? A position statement in there is how to counter communism taught in our schools by teaching capitalism in our homes. We're not going to change the rules and the cash flow game is part of that. That's it how to teach capitalism in our homes. That was my topic. Interesting, okay, so here's the thing. I think we also then common going back to the lack of financial. Literacy in terms of what we teach and schools that year My thing is: what happened when we took shop class out of high school and
If you look at our schools today and conclude, I think quite logically, not teaching vocational arts and we're not teaching finance sure literacy I want Maybe that's the one to punch that has the. Country off MIKE. Your honor, and that's why I commend you for dirty jobs. You honor the people that think with their hands, and that was the key to being an entrepreneur. I think with my hands. I do things. That's why I made so many young people there are going to start their own bitcoin. Our son become a billion and guy. Well good luck! You no bottom, we ve lost our work ethic. Can we talk about debt yeah because I know you know Dave ramsay. He was on our guest fumes. It's ago and part of
what our foundation, is on, is trying to stay out of debt and not letting a college loan or so many other things overwhelm you and you write a lot about liking debt and wanting to have the right kind of debt. I wonder if you could expand on that well, macroeconomics is historical and big. So every time in history, the chinese empire came down when the chinese printed paper There were the first guys, then the roman empire came down with a talk, their coins and debased, and so one thousand nine hundred and seventy one. I was in vietnam and next house August 15th, one thousand nine hundred and seventy one Nixon took the dollar off the gold standard
and part of financial education and macros understand when Nixon did that in eighteen, seventy one dollar became debt. It was no longer backed by called that was one of the biggest changes in world history, but no I know this isn't so day round is a friend of my elders, but he always talks while no doubt free, I'm a billion two in debt, but I had to learn how to use a billion dollars to make me rich. So that's why I'm irish dead in I had me, take real estate courses and all this not for the real estate, but the learn how to by real estate with debt. All points have three sites. Heads tales and the edge rams is on one side,
I am. On the other hand, all I ask people to do is look at both sides. Well, full disclosure, Robert. That's, ultimately, why I wanted to have you on, because I agree instinctively with a lot of what you ve read but a lot of people who listen to this podcast have heard me say four years, as Dave has said that debt is, only four letter word that can really have things up right. I am interested, and I wonder maybe the way to ask it is to say if you think that employee like so many people do then dead. Real can be your enemy, but if you think, as an entrepreneur as fewer people do then. Maybe there is another way to think about it. That could really worked here advantage correct. But if you understand that the? U s
dollar debt. Today, the us is the biggest debtor nation in world history, we're not going to pay off this debt and what the fed does and the treasury does and wall street do they just keep propping up that stock market for the rich and that's what's coming down today and that's why to go back to nineteen. Seventy four, when the four o one k came out on going on god, we ve been set up, and so that's why the world economic forum and claw schwab is talk about the great reset and along nothing and you'll be happy as today. That's why right, capless meant faster every single day, all across this great land, tens of thousands of consumers are opening up their credit card bills and staring at their statements in shock and saying some really bad words out loud. Why be
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to credit approval rates. Five point: seven: three percent jpr to nineteen point: ninety nine percent. Eighty! zero point, five percent pages- three requires excellent and conditions and others are subject to change way visiting cards I read the other day somebody who was both complementary and critical of you at this,
in time, which is a neat trick by the way, but this guy said Saki is a hundred percent right. The market is going to crash, but he can't know when, which is. Another timing observation, I suppose, but you we're gonna, live to see it go splat. Now we don't know what's going to happen because it's an election years, you know when I'll look at c n b c and I call it cmbs. The walls are bright, red, and what every one of those talking heads say was stay for the long term. Don't worry this will pass and I'm going she's, but that's what they're trained to say by wall street. So I have a friend coming on next week. He used to be a financial planner until he found religion and though he says they're trying
to keep you in the market at all. Cost has called a u assets under management, so they all claim that I have twenty billion under management, so wall street, paying these guys say that and the firms like black rockin mutual fun guys they gotta, keep you in there and I think, those tragic well, there is the long term. The generational long term and then there's the term of your life, which might be long might be short. Do you temper your advice when you're talking to seventeen year old, sixty year old, one year old, does It concern you at all that sometimes it worries me. You know when I say something very, very broad. Like colleges, outlived, its usefulness, it's become way too expensive. I have to check myself sometimes
you know I'm not really sure whose listening your situation might very so I don't know, do temper. Advice based on the age of the personal listening, my best, but there's something it's happening as part of man. Brok economics. You have to understand. Demographics, so was the fastest growing demographic group in America today old, fury unemployed ninety last year, and the question is: who is gonna? Take care of them if the market go kids, grandkids on the bright side, I invests in old age. Homes are making a lot of money way to make lemonade at that luxury old age, homes it's true alarming, like this always
opportunity, let the look! there's always a girl standing by willing to take a ride in an attack helicopter, that's correct as well. Drawn up pilot You could just wave your magic wand and have financial literacy taught in high school. What's the most important aspect of it in your while the good news is it's happening like the santer is out of florida, gonna incorporate an academic system, but he has to go up against because labyrinthine in america. The any a national extortion association which my poor dad ran and so on begins elaborate unions. But again that's marks on not against lebanon, as but as more said workers of the world unite and enjoying labour unions by
the worst labour unions, either teachers unions, because they control education and they're, not rich people. A poor people, that's my biggest concern, so I started it happen. It hasn't been easy because I'm rich dad poor dad came out one thousand nine hundred and ninety seven. I got trashed by the new york times and I'll surprise. Surprise, and they said you don't know what you're talking about cuz. I said savers are losers and you looking today, that's quantitative, at printing. They say that print was twenty five percent of all the money in the last five years. They just keep printing to solve the problems. It's not been easy, but you keep saying it. I keep saying it and I keep fighting back And it goes back to that vietnam, our war song. It was why buffalo springfield, the good news is buffalo spring. Fails I was battle. Lines are being drawn everybody's right
but is ruled out. I think wine being drawn right now, because saint upsets me is when people say americans are racist. Systemically raises that's not my experience. We should be promoted on qualifications experience not because of re gender do have reasons for optimism at this point if you look at the word emergency biagi and say why the base word is emerge, where the big emergency right now so something is going to emerge. As I say, battle lines are being drawn. Political in my life cause it's none of my business. You wanna go look. I've done up to you and becoming
politically active. You know, donald trump and I wrote two books together, while we wrote them as capitalists without writer anything else and he's a good man very, very good man. So I, get a more political, emotionally donating money to campaigns now, but I've got to start doing something so standing on the sidelines. That is an interesting shift. I mean when you're in the book business and when you're in the advice, business, you have to talk broadly, and I guess that was the question I meant to ask earlier. This book represents what feels like a clear and present departure. From wanting to be as again military and as possible in your views, you sound now like a guy who has seen an emergency and wants to use his platform to be is crystal clear as he can and and obviously you know,
stranger to risk either. Anybody with tat, understands but this is a risk. You're willing to take and It's interesting to watch I'll tell you that, they had the start. I have mortal lose when I rode capitalist manifesto just came out. I had more to lose and gay because, as you know, money sacks power religion. There was a very toxic subjects immediately. But somebody's gonna say something well robert. You set a lot for sure and you can genuine to say things and what is personal plan for the future I mean. Is it more books? I know you in camera. Doing the radio show is that a weekly thing now, as one well when it comes up as pretty urgent demand and I came in I have
made so much money. We're getting divorced by the way was still got friends who had enough of my marine corps added. Out of dog about enough helicopter right by anyway she's a smart woman. The basic idea was made her and get married to her good team. I always say that I'm like the hunting dogs, you know amended field like him for the bird and she walked behind with a shotgun and when I point and the bird flushes shoots shoots it teamwork and she is extremely good at the detail and she's smart. You have got see. She's kind is bureau so as a great relationships. Our plan is we're going to set up a trust as a lot of money that we're have to pay the money forward forever. We don't have kids some,
God put all that money and I trust and give it to where they causes especially education and courage and freedom, how money is still going forever What happens to the one point, two billion on the right: inside of the ledger. All set up the one point: two billion in debt. You were talking about that underlies the I guess real estate, I mean forgive me I'm kind of a neophyte with that, but I think a lot of people are wondering still fundamentally. How can robber key saki have build such an empire and still, oh somebody somewhere. One point: two billion dollars, while that's because, ghost back to nineteen thousand seven hundred and eighty one mission to the dollar. After the gold standard, the dollar became debt and the banks money does not exist unless you- and I borrow so when you say live debt free, you actually crushing the money supply. So what
borrow money is created. And saw as long as there's an asset like my old age, harm which, albeit living and soon they all at home pays off the debt. I think what mike is asking those if you owe one point, two billion dollars for the properties that you have. How does that fit into the trust of that money has to be paid back at some point correct now it never does. Like the federal reserve touched. I guess what it is. Bottomless line of credit s? What are we now we're thirty trillion in the hole and look? we do agree on this, because I've made the point: how are we supposed to instil in kids the dead. Is the enemy when our for mental parents have wrecked up a thirty trillion dollar obligation,
there's no debtors prison, but I mean I guess consequences could involve bankruptcy. If you don't manage the debt properly, I guess How worried are you supposed to be about a billion dollars in the hole when the country's thirty trillion? I set my phone. Excuse me to get. He gotta take a call. Sometimes you know it could be donald trump creditor. Third boss. I just allowed phone some looking for that one point: two billion back billion I've had that happened, that's a good life slices, it is it's a great saturday night lives skit somebody get a call. You know MR gillis zaki about that. One point: two billion: we worked out payment plan at all saying if ye all two thousand dollars you have a problem,
two million. The bank has a problem right right it's one of the things I had to learn was how to borrow money and have the asset like the apartment houses pay for my debt and the more I could prove to the bankers, so they don't securitize it to be personally, they securitize it to the property. So if I don't they take the property right I'll, be dead it in the ground and I still got the property. So that's what they want. The hotel, you mentioned the high it that you're rich dead, ultimately sold. Did he develop the hotel, or did you just on the underlying real estate and realistic That's called an assemblage, so was a bunch of little little properties along the bijou any slowly pact, one off at a time and his plan was to take down the whole city block sal and some kid
this, I teach me at night and by the time I was nineteen sixty seven, I was at school in new york and I come home and he bought the whole place and at that time it was called the waikiki built more hotel, so nice, you sixtus out, I'm standing there about twenty years all and he died. I myself hotel. He sold it to hire grief So have you written the memoir yet or was that really how you look at rich, dead, poor dead? Are you gonna look back at all of this some point and get all the stories in one place together? I think why my books, I successful or not theory there, what I've really done.
And so I'm just gonna reckoning little stories as I go along and I just I play monopoly with rich dead. And having teach me about death- and things like that changing the way, I think and again that's why I say to you what you're doing when the dirty jobs and that it's the working man who's getting screwed they're getting screwed big time. Do you think I pay taxes, no legally I've gotta come was gonna. Turn is the reason I by real estate is because of the tax law, school appreciation, depreciation, amortization, So every so often when I make let's make a million dollars, I've got a bite,
five billion dollar property to depreciate? It says offsetting taxes. So that's why? When elsie Alexandria, casual cartels and by down and com was a tax to rich, we don't pay taxes legally, but they don't teach that. So that's why go back to invite and cut off the keystone extant pipeline and oil went from thirty dollars a barrel to one hundred thirty dollars a barrel. I make more money, but he screwed this whole country he screwed. Hey, buddy, because the economy runs on oil. It provides fuel and provides food. So that's why I speak out because I can't stay quiet anymore, but our school system are poor. Like my poor dad phds who operate in theory, they operate in theory.
Not reality on. I talk about being one point. Two billion dollars in debt: it's my debt, not the governments dead. I do it every day. When did you know you were rich? I don't think. Ever do earlier is kind of a game, and thus- in I saw a play monopolize the play this game that work for my father amicably. Gonna be like your dad, we're schoolteacher acid evans. Now then, my dad. We're dead. When I caught the moraine choices you gonna fly for airlines to set up a gunshot pilot. You don't want me fly, Imagine me as a pilot for southwest airlines, strap in. You guys are going to be a little rough
we're going to land on the beach for an unscheduled picnic ida. So my by paradises fly for the airlines and then got back kitchen mba gotcha phd. I said I wind up just like you Robert, it sounds like I mean, I know you're a contrary in and I know you're irreverent and I know sometimes like me You're deliberately subversive you have to keep them conversation? Lively is fair to say that in almost every instance, you cautioning against security. Your cautioning against convention, we are pushing. People and challenging people to resist the comfortable path and two frankly do some
thing that just scares the hell out of you. That's why it looks like my concern is MIKE they're taking our freedoms. Our freedom of speech has been taken on what else are taking now and they're subverting our economy. I just fought for freedom, I'm a us marine. I didn't go there to kill communists. I went there to fight for our freedom, but it was one of the best educations I ever had because I saw the communist manifesto in real life. I almost got court martial for my mouth? We have to write reports after every bad battle. We lose somewhere a fighting at that time and seventy three seventy two seventy three were found. The nba. Nor yet the maize was running across the dmz. There was a bow whole clang tree So our the? U s air force
if a marine corps army, we went to stop them at clang tree and they kicked our asses a pound at us. We couldn't stop them, they just ran south and when you have friends, don't return you're standing on the deck of your carrier and what are your best friends? Crew doesn't come back, the plane disappears, and so I sat down at the right and after action report. All pilots do- and I just asked one question. I said: how come there via the maze fight harder than ours and that?
almost got a court martial deny me, but the thing was the press was already after us, because there was a battle away and all that stuff. They kept writing stories that were true, and this was armed forces, radio, the armed forces press, it wasn't true, it wasn't true, there's killing more people, atrocities on all this. They never showed the atrocities of the NBA was doing, but they showed our atrocities and I turned the war against us. That's why you know I came home first, I I do is hit by spit on orlando Norton air force base and seven hundred and eighty three january 11th, one thousand nine hundred and seventy three and the commanding officer and a gentleman america's changed change into civilian clothes as fast as you can.
Suppose you get off this blight, and so he called running off and there was always happy processes in other woodstock generation, throwing shuddered spitting on earth, calling us baby killers. And I still remember friends at all: come back and just just past memorial day was a few days ago and I always remember the saying I remembers I'm alive today because dead then kept fighting. We fought until we died. We didn't care our friends from one their life, some right and I come home. I get spit on by all these f unhappiness and woodstock guys. So I still have a kind of a little raw spot there. If you don't owe me, I think I do and this will air writer. D day and I wonder it seems like you're, not
own obviously for europe for your business and fear defence of entrepreneurship, but history as such, orton part s of understanding our country, understanding macroeconomics microeconomics and you've made many mentions over the last hour to all sorts of historical, steps and missteps the various leader in various cultures have taken over the years? I wonder with d day on everybody's mind right now. What can we learn from that and what and we learn from the men and when, and who are still, as you did decades ago, volunteering to wear the uniform. Well, It is one thing is to think about data that once a stand on the beach of normandy and look at it and its showing its chilling. You not. We fought for freedom, we fight for freedom and we're lost our freedom the hour
Call systems is, if you read the commonest manifesto, is within eighteen. Forty eight said that communism. Take over american two steps that first step was nineteen thirty, when they are frankfurt, schools
teachers to columbia, university and columbia university in sixty eight was a hotbed of student violence protesting that it was kent state after that, and all that so doesn't spread through academics. So that's why I post my results: application today at all this, so that was one thousand nine hundred and thirty and then in twenty twenty have no proof of it, but I suspect the election was stolen and when you take the election you take down my friend Donald trump is a very good man says things you shouldn't say, but he's a good man that was space to that was two thousand and twenty until two thousand and twenty to come up with capillus benefit counter communism taught in our schools, but teaching capitalism in our homes, and that's why I started in nineteen. Ninety six, when I came with a cash
game, because, as maria montessori says, what the hand does the mind remembers and we need to teach our kids about money and freedom and dont depend upon the government to take care of me. That's what concerns me. We have a generation of people who are weak and broke. This tragic the shopping. So those are my home is a very, very the high on the shopping center. I was there just for a few hours and I saw two stores close to on a saturday. I just shut the doors the cruiser in there taken out the drywall that fast it's crashing and those families their businesses, their life savings all disappearing. When, if Biden just opened up the pipeline, it wouldn't solve the problem, but it would cut down on the inflation and inflation
and is killing us oil come in food come in and everything and all these green is going there. Oh yeah we're gonna save the environment. While I'm in favour serving the environment. I make a law of money. Call carbon credits it. How do we say we got tax breaks, saving the environment through carbon credit, but these guys are killing america there killer, I spent It's taken a freedom sunday, you allowed nothing and you'll be happy and that was marks. Abolition, a private, proper. That's what they're doing. Robert, you possess the courage of our convictions, your sale, two things that are gonna make a lot of people angry, and I realise that it must feel good to be horrible, but also good, to be true. In your life, where you know what you're, going to say what you believe
Was there ever a point in your life, where you didn't do that, where you pulled your punches I've class in us. But there comes a time like us, that song by buffalo springfield battle lines drawn, your mom, restless, the battle I've been drawn everybody's right, nobody's wrong. Young people. Speak in their mine, so much from behind said. It reminds me there's a poem by yeats called the second coming that ends with the lines. The best lack, all conviction and the worst are filled with passionate Intensity, I think it's another way of saying that country's off MIKE everybody, Certain every these loud, very fewer, being heard and there's just this feeling of
anti on both sides or, however many sides there are none everybody is going to be right on this one- and I guess time will tell I'm encouraged, because parents are fighting back gentleman, who's teaching, our kids. As I always said, oh, why did our school teach us about money? They don't teach us anything got turned out for. I'm sorry! No! It's ok! If its trump take it put him on speaker, but about love to hear what he has to say. Oh my god said son one I can hear it was pretty louder for you than was excuse was probably louder for you. I'm on that thing. Twenty four seven. What is next for you. What are you going to do with your day? What does ricky saki? Do at this point in his life? When he's not, you know defending free.
Him and borrowing money but the problems of the world pilates class, because I lack flexibility. I'm seventy five years old, this young lady, puts me into a contortionist. You know health becomes more important. The older you get, but thank god I have the well to afford it. So I lack flexibility, yeah baby, the greatest thing over the last hour cap so stiff and shares Try refreshing and more myth through those machines are now just great if health right now Well, look: we should learn the plane or in this case the helicopter as it were, and I think a good place to do it is the words you just used, encouraged you're encouraged by parents fighting back who are fighting back. You know if parents are fighting back Well, then, surely other people are going to push back as well p
we all know that something's not quite right, but I don't think people agree on what the problem is. So, while said we'll see, that's why rod capitalist manifesto, because I read the communist manifesto nineteen sixty five and oh, my god- oh my god, and people can get that at rich, dead, dot com, correct couples manifesto you. I I stay away from the communist manifesto, no julia, and recently we always manifesto. Don't read that people. You know it's only fifty pages, but it's worth reading And you'll see a lot of things that he protected march predicted in eighteen. Forty eight coming true today.
Some day. You allow nothing and you'll be happy about tax. The rich you want mark says, since an income tax is necessary for the growth of communism, a progressive income taxes, Essential for the growth of communism, you quoted another one of my favorites to at the beginning of euro latest book. Edmund Burke, famous irish philosopher The only thing necessary for each go to prevail, is for good man to stand by and do nothing. Thank you. Thank you. Thank you. Thank you. So I appreciate what you do like. I said we speak for the guys that think what their hats We need more of them. I hope montessori doesn't mind, but I'm gonna use. That is the title of this episode. The the does the mind? Remember here. Thank you, Robert thank you.
But the good work. I appreciate I really do. I will try you do the same battle lines I draw and arming everybody's! right and nobody's wrong the best lack or conviction and the worst are filled with passionate intensity. Look at us quota famous people best of luck with the book. I care This episode is over now. I hope it was worthwhile sorry, it went on so body if it makes you smile, Your satisfaction in the way that people do
days leave I'd guides, vague idea be and urge, but where will the advertisers really like to judge a young age awry about genocide or two you gotta do is leave a quick? I saw a review. Not all you got to do is leave a quick. I saw a review and that's all you gotta do is equipped Emily man got to do is leave a quick glance. Reviewing all you gotta do is leave a queer, even if you hate I've sauce. Actually. Thank you.
Transcript generated on 2022-06-08.