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  • Translator: Queenie Lee Reviewer: Denise RQ

  • This subject, "wealth and income Inequality"

  • are the biggest moral crisis,

  • and I'll also say it's a spiritual crisis in America today, all around the world.

  • This gap between the rich and everybody else

  • is reaching critical proportions.

  • I think one of the biggest crises of the young people,

  • today's young unemployed become tomorrow's unemployable;

  • they lose valuable jobs training skills.

  • I'm going to show, as a picture is worth a thousand words,

  • I'll just show you some pictures

  • about how rapidly this inequality

  • as well as the opportunity inequality

  • is growing.

  • What's happening in America today is savers are losers.

  • Most parents say the kids go to school, save money, and work hard,

  • but in 1970, when I graduated from school,

  • 1 million dollars at 15% interest earned me 150,000 a year.

  • Now, you could live on 150,000 dollars a year back then.

  • But in 2016, do this thing called quantitative easing,

  • I called it the Greenspan Put.

  • It's one million dollars at negative 0.05%,

  • it's going to cost you a million dollars to save a million dollars.

  • That is how deteriorated our financial systems have become,

  • and this is one of the causes of the gap between the rich and the poor.

  • Another thing is that fewer and fewer families

  • are receiving middle-class incomes; it's going down.

  • Every time we shop at Walmart, we ship dollars and jobs

  • over to China, and Pakistan, and all the other countries.

  • That's capitalism.

  • Another thing that's happening when people's incomes go down:

  • they become dependent.

  • Now, the US government tells us that poverty has been beaten in America.

  • Maybe poverty has been beaten,

  • but what has increased is the entitlement mentality.

  • The attitude that the government and other people should take care of me.

  • As I said, it's a moral crisis as well as spiritual crisis.

  • I learned in Sunday school "Give and you shall receive,"

  • and too many people today think they should receive.

  • This is another crisis here: social security.

  • Being Japanese, the Japanese call it, "Ah, social security."

  • (Laughter)

  • I'm a racist, I know.

  • (Laughter)

  • But anyway, I've met so many people my age -

  • there are about 75 million baby boomers on the top of the baby boom chain.

  • We expect the government to take care of us;

  • that's a lot of highly educated people.

  • That's a crisis.

  • In 2002, I published this book "Rich Dad's Prophecy."

  • Fourteen years later, the prediction was that in 2016,

  • there will be a global financial crash.

  • We're in 2016, and here we are in 2016, you can see it coming.

  • In the first ten years of this century, we have had three major crashes:

  • in 2000, with the dotcom crash;

  • followed by the 2006 real estate subprime crash;

  • and then in 2008, the banking crash.

  • The question is, "Is this next?"

  • This is "the giant crash of 1929."

  • Every time I listen to those guys on CNBC- I call it bubble division -

  • they keep talking about the "giant crash of 1929."

  • I tell you what: nothing compared to this one coming.

  • That's why I write, and I speak, and I'm very concerned about

  • our futures, our well-being, and the state of the economy.

  • I'm going to talk today about why the rich are getting richer.

  • "Commercial Message", my next book coming out.

  • But I'll explain some of the tricks of the trade,

  • why guys like me get richer, and everybody else is not.

  • This is quite interesting.

  • This is one of the reasons the rich are getting richer.

  • These are the Bush tax cuts,

  • the biggest tax cuts go to the top 1/10th 100%.

  • Thank you, George. I appreciate that.

  • (Laughter)

  • They have no morals, those guys, man, I tell you!

  • I'm the author of the book "Rich Dad Poor Dad,"

  • Maybe I should see a show of hands.

  • How many have read "Rich Dad Poor Dad"? Oh, good.

  • Some of you have. Who has not yet read the book here?

  • Good, there are some customers out there; I can see that.

  • (Laughter)

  • As I say to the Publishers Press,

  • I'm a best-selling author not a best-writing author.

  • But anyway,

  • for those who haven't read the book "Rich Dad Poor Dad,"

  • it's a true story on my two dads.

  • The story begins when I was nine years old,

  • growing up in a little town,

  • a little sugar plantation town, called Hilo, Hawaii.

  • I raised my hand in the fourth grade -

  • and I went to a very rich, basically, all-whites school -

  • and I said, "Mrs. Jarrell, when will I learn about money?"

  • She said, "Why? Don't you know the love of money is a root of all evil?"

  • I said, "Not to me."

  • (Laughter)

  • But she said, "You're here to get a job."

  • I said, "I don't want a job. That's why I want to get rich."

  • She said, "Go ask your dad."

  • That's where "Rich Dad Poor Dad" started.

  • My poor dad was the Head of education for Hawaii,

  • a very smart man, PhD.,

  • went to Stanford, the University of Chicago, Northwestern.

  • I went home, and asked dad, I said,

  • "Hey, Dad. When are we going to learn about money?"

  • He said, "Never." I said, "Why not?"

  • "The government doesn't allow us to teach you that."

  • That's kind of interesting.

  • So he said, "If you want to get rich, go talk to your best friend's father.

  • He's an entrepreneur, and someday, he'll be a very rich man."

  • That's how the story of "Rich dad Poor dad" starts.

  • When I was nine years old, I crossed and went to my rich dad's office,

  • Being an entrepreneur,

  • he started teaching his son and me about why the rich get richer.

  • That's how my financial education began.

  • So I wrote this book in 1997.

  • So far I sold about 41 million copies in 50 languages throughout the world.

  • I'll give a little bit of my background.

  • Thanks.

  • I don't do it for the applause. Send me cash. But anyway...

  • (Laughter)

  • This is Hilo, Hawaii to New York City.

  • I didn't do well in school; I was a straight C-minus student -

  • having the old man as the Head of Education wasn't easy.

  • So, anyway, I got two congressional nominations:

  • one to US Naval Academy at Annapolis, Maryland,

  • one to US Merchant Marine Academy at Kings Point, New York.

  • I took New York

  • because they were the highest-paid graduates in the world.

  • This is me at Kings Point, here.

  • Our starting salaries, for most of us,

  • were about 100,000 dollars a year, back in 1965.

  • So that was pretty good back then,

  • not much today, but it's pretty good back then.

  • And then, when I graduated, I got a job

  • as the 3rd Officer on a standard oil tanker sailing in the world.

  • It was a great job except for one thing - the Vietnam War was still on,

  • and my moral conscience kind of got to me; I said, "Maybe I should go fight a war."

  • So I joined the Marine Corps, and I took a cut in pay

  • from about 6,000 a month down to 200 a month

  • as a Marine Lieutenant.

  • It was a great decision.

  • I went to a flight school in Pensacola, Florida,

  • it was right up the street here at Camp Pendleton,

  • and straight to Vietnam.

  • It was really a great experience.

  • Loved the Marine Corps; Loved the guys who I had worked with.

  • It's a band of brothers; a very spiritual organization.

  • When I came back, that's when my business career started.

  • My first business, the Surfer Wallets business, and all of this.

  • Everybody thinks,

  • "Yeah, when you start getting successful, life's easy."

  • Well, no; success is expensive.

  • I started selling these silly wallets, and all soon, they took off,

  • and I spent more time raising capital to buy more inventory

  • so l could sell more.

  • But it was a great learning experience.

  • I learned to make a lot of money selling wallets.

  • My life changed when I met this man here, Dr. R. Buckminster Fuller.

  • This here is what Fuller is noted for:

  • he's considered a futurist and a friendly genius.

  • This is a geodesic dome at the Montreal World's Fair in 1967.

  • In 1967, I hitchhiked from New York City all the way to Montreal

  • to go see the dome,

  • and it was a mind-blowing experience.

  • I never thought I'd ever meet this great genius.

  • John Denver calls him "the planet's friendly genius."

  • In 1981, I had a chance to study with him

  • up in Kirkwood, California, near Lake Tahoe, for five days.

  • I made the mistake of sitting down next while he sat down next to me really.

  • It was called "The future of business" seminar,

  • and he sits down next to me, and said,

  • Robert, what is your life's purpose? What is your mission in life?"

  • I said, "Oh, to get rich."

  • Wrong answer! He chewed me out.

  • He said, "Robert!" (gesturing a reprimand)

  • It's a waste of a good mind.

  • Why don't you do something that changed the world?"

  • I said, "Changed the world? I just want to get rich."

  • Finally, I got it.

  • As he said, I'm not here to work for me, I'm here to work for everybody else.

  • That was a pretty cathartic event

  • once I realized how greedy I was.

  • Then I studied with him for three years.

  • Every time, he kept asking the same question that he asked himself,

  • "What can I do, I'm just a little guy?"

  • "What can I do, I'm just a little guy?"

  • He was tiny, too.

  • So I ask all of you what can you do? We're just little people in many ways.

  • I studied with him for three times in '81, '82, and '83.

  • And then, he passed away July 1, 1983.

  • He left this book behind; it was called "The Grunch of Giants"

  • and it stands for "gross universal cash heist," G-R-U-N-C-H.

  • It's how the ultra-rich rip us off.

  • Fuller is a friendly genius,

  • he never wrote finance books or economic books.

  • He's a math, science, art, design man; he's an architect.

  • I read "Grunch of Giants" and I understood it

  • because it is exactly what my rich dad was telling me;

  • the rich are ripping us off.

  • So at that point, I said,

  • "What can I do, I'm just a little guy?"

  • I decided that time I would take on grunch;

  • and for those who wonder who grunch is,

  • you may just notice that those crashes we just had,

  • we got bailed out, the rich got bailed out.

  • Let me tell you, ladies and gentlemen,

  • Bernanke and the President Paulson stand up there,

  • and they say, "This was a mistake, we had to save the economy."

  • That's a lie.

  • I hesitate to tell you that; it's a lie. They bailed out the rich.

  • It is part of the business plan; it goes on all the time.

  • So, ladies and gentlemen, I said in 1983 I got to do something about this,

  • and what can a little guy do is take on the biggest banks,

  • the Federal Reserve Bank -

  • which is not a bank, not federal, no reserves -

  • (Laughter)

  • not American.

  • Get the hint?

  • I could take on Wall Street, I could take on government,

  • but I could also take on the school system.

  • See, ladies and gentlemen,

  • those crashes, these bailouts are not accidents,

  • and neither is it an accident there is no financial education in school.

  • But my research found since 1993, it is premeditated.

  • Just as prior to the Civil War, it was illegal to educate a slave,

  • we're not allowed to learn about money in school.

  • When I found that out, I said,

  • "OK, it's time for me to get on with my life and start teaching."

  • So I become much like my rich dad and my poor dad,

  • I started teaching.

  • It was not too far from here,

  • my wife and I were homeless in San Diego, doing our best to teach,

  • because we can't go inside the school system,

  • and nobody wants to listen.

  • That's how it started,

  • and so I'm going to tell you what financial education really is.

  • I'll start by telling what it's not.

  • Financial education isn't saving money and investing for a long term

  • in the stock market and getting out of debt;

  • exactly the opposite of that.

  • My financial education began with the game of Monopoly.

  • We all know the formula: four greenhouses, one red hotel.

  • When I was nine years old till I was about 20,

  • rich dad and I, and his son would play Monopoly.

  • That's how I learned to become a rich man.

  • The reason that works is this is the cone of learning.

  • It was created by a man named Professor Edgar Dale.

  • In 1969, he came up with the cone of learning,

  • and he said this is how human beings are designed to learn.

  • Noticed the worst way to learn is by reading,

  • and the second worst way is lecture, listening to the boring teachers -

  • that's why I was never