George Gammon Joins Robert Kiyosaki

George Gammon, newly appointed CEO of Rich Dad Radio Show, and Rebel Capitalist Show host joins Robert to talk economics.

Getting into Macro, and commenting on Karl Marx’ Communist Manifesto, written in 1848, George says that while The Communist Manifesto made a lot of predictions that we are seeing come true right now, he believes author Marx go the solutions wrong.

Robert agrees, “It's unbelievable. This book came out, Communist Manifesto came out in 1848. So 160 years, whatever it is, I'm not good at math, but in 1965, I left Hawaii and I went to school in New York. Military school. I didn't go to a snowflake university. You know? I mean the first thing they do is they start yelling at you, screaming at you. First word is mission. What is the mission? Everything is mission driven. I went, Holy Mackerel. Then my instructor, to study economics, he had us read The Communist Manifesto, Mein Kampf, Maslow's book , and other things, so we understood who the enemy was.”

Gammon agrees that it seemed like everything Marx was coming true back when it was written, but even just as much now.

Who Stole My Pension?

Robert says Marx declared the problem was capitalism; it leaves the bottom half poor. You could be what is called ‘middle class’ in capitalist America, but capitalism will ultimately push you down into poverty. ERISA (what is now 401K) is introduced sometime in 1974 or so, and when the market crashes, that generation in ERISA are toast, Robert says. The middle class gets wiped out.

We are so dependent on 401K’s, a defined contribution plan. The old pension plan, Robert says, was a defined benefit. If you worked for a company, they promised you a certain amount of money a month.

Robert says, But a defined contribution, Wall Street, as long as wall street stayed up, it was a good deal. So the reason we wrote this book here is my classmates who flew for United Airlines and all that, they lost their pensions. PBGC, pension benefit guarantee corporations. They took their pensions. So as you, and the reason we always get together with talking with Jeff Snyder and all this, you're talking about the Euro dollar crisis and how they're pumping up the stock market right now. My prediction is my generation who are affluent today, will be in poverty in 10 years.”

Gammon says, take it a step further: it's not just your generation, but it's American society because now our economy is completely dependent upon the asset prices or the assets that are in the 401k. So if the 401k crashes as a result of assets, that means the entire economy crashes and that goes back to what Marx is saying. That's how those two books really dovetail on one another.”

“And there's one more thing that that Marx was talking. So his complaint, which is accurate that capitalism will turn the bottom half into poverty. He writes about how capitalism screws employees. He talks about how doctors and lawyers will no longer be exalted. This is in 1848. So for those who have read Rich Dad Poor Dad or The Cashflow Quadrant, these are the employees... they're always afraid they're going to lose their job. So the smart guys were the S's. Doctors, lawyers, accountants, and all this. He says to this in 1848, that capitalism was going to screw the S’s,” Robert says.

Gammon says, he would argue that is wasn’t free market capitalism that did that. I”t was the Fed, it was the central planners, ironically. That brought his predictions to fruition. He thought it would be the capitalist where it was actually the central planners. Who are Marxist. So it all comes full circle.”

“Everyone thinks the Fed is Federal; it’s not. It’s a cartel.”—Robert Kiyosaki

And what is does, George Gammon says, through quantitative easing, through artificially low interest rates, and through bailouts of these huge corporations, is take capitalism and it completely perverts it. Distorts it. This is why I always use the term ‘Free Market Capitalism’, not just capitalism.

The GFC, or Global Financial Crisis, Gammon says, is the result of capitalism gone amuck. The Fed came in, he says, and bailed out all of these corporations. That’s what capitalism does. I said, NO! That has nothing to do with capitalism, or the free market. Free markets do not involve bailouts; that involves actually letting businesses go bust.

The Fed is the third central bank, but it’s not really a bank, it’s more a Marxist organization.

Gammon says it’s not just communism, but more of a blend of corporatism. The first thing that comes to mind with that term is what we saw in 2020, he says. Especially with the lockdowns.

“We told small and mid-size businesses that you are no longer open for business.” You’re bust. So that consolidates all of the demand to these huge mega corporations. If you are someone trying to control the means of production, it is EASIER to control the means of production when all the goods and services are produced by 100 mega corporations rather than millions of small business.

So, was what we saw in 2020 the start of Communism?

Robert shares that this happens in stages. People can’t accept communism at first, according to Marx, so they put socialism in place as stage one. Stage one, he says, such as the advent of Social Security. “Everybody’s now on Medicare welfare and all that. We are a welfare nation.”

“So stage one,” he continues, “is socialism completed. “My English instructor said, back in 1966, that sometime in the future, communism is going to step in and communism is the opposite of socialism.”

“What happens when communists take over from socialist? They murder all the socialists. If you look at history, every time communist took over, the first people they kill are the intellectuals.”

Creating an environment that is deflationary…

George Gammons relates that, with regard to the recent phenomenon with the Euro dollar future curve inverting, it is looked at as creating a deflationary environment. “Well, most people see that as prices going down. Sometimes they do, sometimes they don’t. But what that really means is we have a reduction in global economic activity. We see this happening in Austria, where they’re going to go into lockdown again.”

“What’s happening in Germany with the mandates, and Australia where they are literally putting people in quarantine camps and you say, okay, well is that going to produce less stuff in the future? Or more stuff? Obviously less stuff. So this Euro dollar market is saying, ‘Hey guys, wake up. Wake up.”

“These methods do not work. This is going to crush the global economy. It’s going to make the global economy go into a recession, which makes everyone go into the arms of that person, that dictator, that’s riding on the white horse, who is the central planner. The Marxist who says he can solve all of their problems.”

Mandate means you lose your freedom

George Gammon says they are trying to take away the ultimate private property, our freedom over our bodies. Because if you can do that, you can take anything.

“Maybe the average CNN viewer we'll say, or someone who hasn't just been paying attention and rightfully so. You know, people have lives, they've got to take their kids to soccer practice. They have a nine to five job. They don't have time to really put the effort into understanding all of this, all the things that we understand. But when they really kind of start to open their eyes and see, okay, well, something doesn't seem right. You know? I'm being forced to do all of these things.

Taking away the private property. I'm being forced to use particular words. The way I try to open up people's eyes to an even greater extent is ask them. I say, go back throughout history and look at the groups that have been in favor of censorship. Because right now we've got a lot of groups in the United States that are in favor of censorship. Misinformation, we need to get rid of that on social media. Look throughout history. How many times have they been the good guys?

Zero times. 100% of the time, they have been the bad guys. So why should we expect that the people that are in favor of censorship today are somehow not the bad guys? If you just kind of start looking at things just through that very simple lens, at least it would make the average Joe and Jane, a little more skeptical to start asking some questions that I think need to be asked right now.

Most of the highly educated people today came from poor families because I don't know if you've ever heard it. People say I'm the first of my family to go to college. You know, for many people that became the badge of honor. Oh, we're poor people, but we're going to send our kids to college. So kids today with how many trillions of dollars out in student loan debt.

So we're talking about how the U.S. is becoming more and more divided and just kind of more insane by the day. Whenever I try to take it to its logical conclusion, unfortunately I always come a one answer and I don't like that answer, but it's war. You're someone who, as a veteran, you've been there, done that.

So do you see that as... Nothing is inevitable. Thank goodness. There are no certainties. There are only probabilities. But do you see us on that path? Whether it's a civil war or maybe a war with China or something? Do you think it can end any other way or what do you think the probabilities are?”

What is happening in Ukraine, Austria, Turkey…we’re on the verge of war?

Gammon says, “Yeah, Neil Howe, wrote the book The Fourth Turning, where he is saying that we're at the end of a fourth turning right now. I actually interviewed him and I said okay, Neil we're at the end of a fourth turning. Every other fourth turning in American history has ended in war. Does that mean that in the next, probably eight years here, that's kind of the timeline for the fourth turning ending, that we'll see a war in the United States? He said in very sobering fashion, I can't predict that, but what I can tell you is that's the way it's ended every other time throughout American history.”