Robert T. Kiyosaki - Rich Dads Conspiracy of The Rich: The 8 New Rules of Money  

This publication is designed to provide competent and reliable information regarding the subject matter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and if legal or other expert assistance is required, the services of a professional should be sought. The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book.

Copyright 2009 by Robert T. Kiyosaki

All rights reserved. Except as permitted under the U.S. Copyright Act of 1976, no part of this publication may be reproduced, distributed, or transmitted in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

Precious Metals Bullion Stocks graph appears with permission from the CPM Group. CPM Group is a leading commodities research firm. Visit www.cpmgroup.com for more information.

Return Performance Comparison chart and Gold-DJI charts are reproduced with permission of Yahoo! Inc. 2009 Yahoo! Inc. YAHOO! and the YAHOO! logo are registered trademarks of Yahoo! Inc.

Cone of Learning is from Dale. Audio-Visual Methods in Teaching, 1E. 1969 Wadsworth, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions

Published by Business Plus in association with CASHFLOW Technologies, Inc.

CASHFLOW is a trademark of CASHFLOW Technologies, Inc.

Business Plus

Hachette Book Group

237 Park Avenue

New York, NY 10017

Visit our website at www.HachetteBookGroup.com.

www.twitter.com/grandcentralpub

Business Plus is an imprint of Grand Central Publishing.

The Business Plus name and logo are trademarks of Hachette Book Group, Inc.

First eBook Edition: September 2009

ISBN: 978-0-446-56817-3

My rich dad always said, Business and investing are team sports. The same can be said when writing a bookespecially a book like the one you have in your hand. We have made history with Rich Dads Conspiracy of the Rich. As the first truly interactive online book in the Rich Dad series, it took me into uncharted waters. Thankfully, I have a great team, and I relied on them often. Each one of them stepped up to the plate and delivered even beyond my expectations.

Above all, thank you to my beautiful bride, Kim, for her encouragement and support. Youve been with me along every step of our financial journey, both the good and not so good. You are my partner and my reason for success.

Thank you to Jake Johnson of Elevate Consulting Company (elevatecompany.net) for his help in shaping the book and my thoughts, and for helping take this book from an idea to a reality. Also, thanks to my editors Rick Wolff and Leah Tracosas at Hachette for their tireless efforts to make this project a successand for taking a chance.

Special thanks to Rhonda Shenkiryk of the Rich Dad Company and Rachael Pierson of Metaphour (metaphour.com) for their tireless efforts on the promotion of the book, and for the top-notch website that was home to this book for so long.

Much thanks to the Rich Dad Team Members who are in the trenches every day, and who have persevered and stuck with Kim and me through thick and thin. You are the heartbeat of our organization.

In 1971, President Richard Nixon, without the approval of Congress, took the U.S. dollar off the gold standard and changed the rules of moneynot just for the United States, but also for the world. This change was one in a series of changes leading to our current financial crisis that began in 2007. In effect, this change allowed the United States to print almost unlimited amounts of money and create as much debt as it wanted.

Is our current economic crisis just an accident, a one-off event? Some say yes. I say no.

Can those in power solve our current economic crisis? Many hope so, but again I say no. How can the crisis be solved when the very people and organizations that created the crisisand profit from itare still in charge? The problem is that the crisis is getting bigger, not diminishing as some would hope. In the 1980s, government bailouts were in the millions. By the 1990s they were in the billions. And today, they are in the trillions.

One definition of crisis I like to use is change screaming to occur. I personally do not think our leaders will change. That means you and I must change instead.

While this book is about a conspiracy, it is not meant to be a witch hunt, to place blame, or to call for resignations. As we all know, the world is filled with conspiracies, some benign, some more sinister. Every time a sports team goes into the locker room at halftime, that act is technically a conspiracy against the opposing team. Wherever there is self-interest, there is a conspiracy.

The reason this book is titled Rich Dads Conspiracy of the Rich is because it is about how the rich control the world economy via the banks, governments, and financial markets. As you may know, this has been going on for centuries and will continue to go on as long as humans walk the earth.

This book is divided into two parts. Part One of this book is about the history of the conspiracy and how the ultra-rich took control of the worlds financial and political systems via the money supply. Much of modern financial history revolves around the relationship between the Federal Reserve (which is not federal, has no reserves, and is not really a bank) and the U.S. Treasury. Some of the subjects covered in Part One are why big banks can never go broke, why we do not have financial education in our school system, why saving money is foolish, how money evolved over time, and why today our money is no longer money but rather currency. Part One will also explain why Congress changed the rules for employees in 1974 and influenced workers to invest in the stock market via their retirement plans in vehicles such as the 401(k) plan, in spite of the fact that workers had little-to-no financial education, as a way to get to our money via our retirement plans. That is one reason why I personally do not have a retirement plan. I prefer to give my money to me rather than the super-rich who run this government-sponsored conspiracy.

Simply said, Part One is about history, because by understanding history we can better prepare for and see a brighter future.

Part Two of this book is about what you and I can do with our moneyabout beating the conspirators at their own game. You will learn why the rich are getting richer while at the same time they ask us to live below our means. Simply put, the rich are getting richer because they live by a different set of rules. The old ruleswork hard, save money, buy a house, get out of debt, and invest for the long term in a diversified portfolio of stocks, bonds, and mutual fundsare rules that keep people struggling financially. These old rules of money have led millions of people into financial trouble, causing them to lose tremendous wealth in their homes and retirement savings.

Ultimately, this book is about the four things that keep people poor:

Taxes

Debt

Inflation

Retirement

These forces are what the conspirators use to take your money. Because the conspirators play by a different set of rules, they know how to use these forces to increase their richeswhile the very same forces make others poor. If you want to financially change your life, you will need to change your financial rules. This can only be accomplished by increasing your financial IQ through financial education. Financial education is the unfair advantage of the rich. Having a rich dad who taught me about money and how it works gave me an unfair advantage. My rich dad taught me about taxes, debt, inflation, and retirement, and how to use them to my advantage. I learned at a young age how the rich played the game of money.