Kiyosaki said that the financial end is near because the Fed has secretly bought back its own bonds
22 May 12:23
Financial commentator and author of the book “Rich Dad, Poor Dad” Robert Kiyosaki published a high-profile post on the X platform, in which he stated that the American economy “is over,” "Komersant Ukrainian" reports.
The publicist claims that “no one came to the US government bond auction”, which indicates the imminent collapse of the system. Moreover, he accused the Federal Reserve of violating the law that prohibits it from buying its own securities.
“The Fed held an auction to sell US bonds, and no one showed up. So the Fed quietly bought $50 billion of its own fake money for fake money. The party is over. Hyperinflation is here. Millions of people, young and old, will be financially destroyed,”
– kiyosaki wrote.
However, there is good news in this story, the commentator argues. But it is good only for those who are sitting on gold and bitcoin.
“Good news. Gold will rise to $25,000. Silver – up to $70. Bitcoin – up to 500 thousand dollars, up to 1 million dollars,”
– the post reads.
In fact, there were two different auctions
Two different auctions took place on the same day:
- The auction of short-term T-Bills (3- and 6-months):
According to CoinGape, on May 20, $212.58 billion in bids were submitted against a planned volume of $74.38 billion. That is, demand exceeded supply by almost three times. - Auction of 20-year bonds (T-Bonds) for $16 billion:
According to TreasuryDirect.gov, it was indeed held with very little demand. Barron’s analysts called it “the worst placement since 2021.” The bonds were sold at a high yield of 5.047%, which caused market turmoil.
As you can see, the problems were at the 20-year auction, but this is not very surprising, since such securities are in much less demand, even if they are US Federal Reserve securities. 3- or 6-month T-bills (T-Bills) are usually in high demand. These are the trends shown by the auctions.
Financial analysts note that weak demand at the 20-year auction caused bond yields to rise, which in turn led to a drop in stock markets. This has raised concerns about the US’s ability to manage its growing debt, but does not automatically confirm the impending onset of hyperinflation.
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Could the Fed have quietly bought back bonds?
The Federal Reserve is not officially authorized to directly buy government bonds at auctions – it can only buy them on the secondary market. There is no direct evidence that the Fed secretly interfered in the placement. Reputable sources did not report that the Federal Reserve was involved in this transaction.
However, this does not mean that Kiyosaki’s statement is not true. But in this case, it is a conspiracy theory, since it is unlikely that documentary evidence of this statement will appear in the near future.
Conclusion
Thus, Kiyosaki presented the situation with one failed auction as evidence of the collapse of the entire system, even though other bonds were sold with record demand on the same day. His statement about the Fed’s covert purchases has not been confirmed by any official source, although this does not mean that it is not true. Although fears about the US debt are growing, there is no evidence of hyperinflation or a collapse.
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