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Book Review – Rich Dad’s Conspiracy of the Rich

By: Steve Johnson

1/15/2010 - 43 Comments

I like Robert Kiyosaki because he always has a unique angle on economics and personal financing.

He doesn’t trust anything or anyone in the financial media or financial management or the government about the economy, until he can prove it with his own research.

He is also not the smartest guy in the world, but he has learned to make a lot of money, primarily by marketing and selling this ideas.

His new book, “Conspiracy of the Rich” is a quick read with lots of good information about the continuing economic collapse that we are in the middle of.

Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money 

 

 

Wealth is at Risk

Robert says a few things that I don’t agree with, for example he says he would rather not try to change the political system, yet he acknowledges that without a change we will all suffer financially and most of the middle class will get wiped out.

“Many people are waiting for the political and financial systems of the world to change. To me, that is a waste of time. In my opinion, it is easier to change myself rather than to wait for our leaders and systems to change.”

Go goes on to use this idea to sell the reader that they are empowered to take control of their financial future, even though the reader is likely to be from the middle class that is bound to get wiped out.

“Is it time for you to take control of your money and your financial future? Is it time to find out what those who control the financial world don’t want you to know?”

He can say this because he believes he will escape the crash and perhaps he will, but if he does end up with a profitable business and the tyrannical government is still in place, then the government in likely to go after his profitable business and his wealth. 

I think he is underestimating the governments’ expansion into the private sector and its intentions to find profitable businesses to tax and spend, wherever they can be found as it moves desperately closer to hyperinflation

For this reason, Robert should reconsider his involvement in the political system.  His wealth is very much at risk.  

Government Conspiracy

Robert goes on to explain four reasons why we are losing our wealth today; Taxes, Debt, Inflation and Retirement Planning (401k).

Robert explains how the Ultra rich control the Federal Reserve and the Treasury and they have conspired to control the world with a hunger for money and power.  This is true, but only half of the story.  Money is the source of ‘all kinds of evil’, but not just when you are rich.  

Having too little money (poor) or having a lot of money (rich) increases the risk of temptation.  Without the guiding hand of our creator, we are not capable of resisting our sin nature and are bound to destruction.  This is why Christ is the author of economic stability.

The rich are tempted to withhold the full wages of their laborers and to cheat in trade agreements in order to increase their wealth and influence.  They are also tempted to use their wealth to make political connection to create laws to protect their businesses from competition and give them competitive advantages, which result is a form of withholding the full wages of their laborers.  Without Christian political leaders, this is bound to happen.

At the same time, the poor are tempted to covet the wealth of the rich, which leads to organized complaining, which leads the poor to use their numbers to elect leaders that take money from the hard working people and the profitable businesses to give it to them.  This is how the poor and middle class use the political system to plunder their neighbors.

Both of these groups are part of the cause of the financial collapse.  This is why we all need to renew our mind with the goodness of Christ.  Rom. 12:2 - "Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God's will is—his good, pleasing and perfect will.".

Renewed Mind

Robert's primary theme in all his books is to renew our minds and start thinking like rich people to become rich.  Robert is right in that we need to renew our minds, but if we focus on being rich without the restrain of the gospel of Christ, we will only become part of the problem. 

Without a mind led by the Holy Spirit in pursuit of the mind of Christ, a mind focused solely on being rich will only result in oppressing the poor. 

So if we were to look beneath the political disaster that led us to financial ruin, we need to look in the mirror.  We have turned away from God’s commands and have let our own selfish desires fill our hearts with greed and covertness.  

The only true solution that will result in an economic recovery is if our nation turns back to our Christian heritage. Psalm 112 - "Blessed is the man who fears the LORD, who finds great delight in his commands."

Financial Education is the Key

In the end, Robert writes that much of what has happen to cause the financial collapse is because of our lack of financial education.  The public is financially illiterate.  This fact also gives the few that have a financial education an advantage.  Robert writes;

“Today, those who have a strong financial education have an unfair advantage over those who do not. With a sound financial education, a person can use taxes, debt, inflation, and retirement to become rich rather than poor.”

I wouldn't say having a financial education is an 'unfair' advantage, because life is not fair yet anyone is free to invest in their personal financial education. 

Robert is right in that the lack of financial education in the U.S. has greatly contributed to the financial collapse.  It has enabled the political system to plunder the wealth of the nation.  I work on my personal finances exactly like he recommends.

I don’t like 401k retirement plans, I work at lowering my tax burden while growing my business, I leverage my assets to gain access to cheap money (debt) and I invest in inflation protected assets like gold and silver.

I am also actively working in all four of his CashFlow quadrants.  E, S, B and I stand for Employee, Self-employed, Big-Business owners, and Investor. 

Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money 

 

 

This is an excellent book with a great explanation of why the economic collapse is not over and likely to get much worse, while also providing good ideas as to how to protect your wealth from the challenges that lie ahead.

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