Foreword
In 1997, I wrote in my book Rich Dad Poor Dad, “Your home is not an asset.” Howls of protest went up around the world. One angry real estate agent sent me a note saying, “You are a quack. You should not write financial books. And you call yourself a real estate investor. Your advice is bad advice.”
In 2002, my book Rich Dad’s Prophecy was released. Prophecy warned about the biggest stock market crash in history, a crash that is still coming. Obviously, the book was trashed by the financial press, Wall Street, financial planners, stockbrokers, and of course, our banks. On page 7 of Prophecy I stated:
You may have up to the year 2010 to become prepared. In fact, in this book you will find out why the chances are pretty good that between now and the year 2010, there will be another giant stock market boom . . . the big boom before the big bust.
As predicted in Rich Dad’s Prophecy, on October 9, 2002, the Dow hit a low of 7,286 and the next boom was on.
In 2007, the party ended and we are now in a global hangover, a hangover of debt.
Eerily, on October 9, 2007, the Dow hit an all-time high of 14,164 and then crashed. The global financial crisis was on, a crisis caused by mountains of debt.
In 2010, Rodney Anderson is releasing his book, Credit 911. As stated in Rich Dad’s Prophecy, you have till 2010 to be prepared. Rodney’s book is an essential read for anyone who wants to be prepared for the next crash.
The primary reason why Credit 911 is essential is because our money is no longer money backed by gold. After 1971, all money became debt. Anyone who does not understand the significance of this change in our monetary system will be doomed and punished financially. Today, we must all understand money, debt, and credit if we are to survive and thrive financially.
If you are one of those buried by your own mountain of debt, you must read my friend Rodney Anderson’s book, Credit 911.
Even if you are not buried by debt, if you want to get ahead financially and not be a victim of the 1971 change in the rules of money, you must read Credit 911.
How did this all start?
In 1971, President Nixon tipped the first domino when he changed the rules of money; he took the dollar off the gold standard. It was one of the biggest changes in world history and a leading cause of today’s financial crisis. Nixon turned the dollar from gold into debt. For the economy to expand, you and I had to get into debt. Every time the economy sagged, or politicians wanted to get reelected, they made it easier for you and me to get into more debt. In the 1980s, the debt problems and bank bailouts were measured in millions of dollars. By the 1990s, the debt and bailout problems were measured in billions, and today the problems are measured in trillions. What comes after trillions?
If you are in debt, are struggling to make ends meet, have seen your home decline in value, have lost money in the stock market, are worried about losing your job or home, or are concerned about your long-term financial survival, you have been affected by Nixon’s decision to take the dollar off the gold standard.
The banks of the world began flooding the global economy with mountains of money, and the party was on. Easy money caused inflation. Wages could not keep up with rising prices. To make up for this loss of purchasing power, normally sane people became gamblers in the stock and real estate markets. As stock and real estate prices rose, sane people became insane.
After the stock market crash in 2000 and the terrorist attack on 9/11, government and banking leaders began running the printing presses at high speed. Soon hot money was flowing all over the world. The stock markets boomed and homeowners became millionaires as the prices of their homes climbed. Not wanting to be left behind, people with no financial education became real estate agents, real estate flippers, or day traders in the stock market. Between 2000 and 2007, free credit cards came in the mail, saving rates went to subzero, and homeowners used their homes as ATMs.
You see, I love debt, but good debt—debt that makes you richer, not poorer. Learning to use debt was an essential lesson from my rich dad. For you to get ahead financially, you must understand debt, both good and bad, which is why this book, Credit 911, is essential to your future. You see, used properly, debt can give you life. Used improperly, debt is financial suicide.
In closing, the year 2010 has arrived. The question is: Are you prepared for a world buried under mountains of debt?
—ROBERT KIYOSAKI
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