In the aftermath of the Silicon Valley Bank collapse, finance expert Robert Kiyosaki cautioned the central bank of a global powerhouse may be the next to belly up.
"The biggest bank that's going to go down is Bank of Japan," Kiyosaki explained. "Because the Bank of Japan carried the interest rates at, what, zero or whatever they did, [and] financed the derivatives markets. And the derivatives market, as Warren Buffett said about derivatives, they're weapons of mass financial destruction and the derivatives market in the world today, financed by the Bank of Japan, is a quadrillion [dollars]."
The "Rich Dad, Poor Dad" author's comments come amid what some have optimistically labeled a market rally after stocks recorded another strong day and markets looked positive in March.
Kiyosaki, however, challenged the idea of a comeback, noting issues with the derivative markets. He also warned the Bank of Japan's heavy connection to derivative markets put it in a more vulnerable position and threaten greater effects on the global economy.
US, JAPAN ANNOUNCE PARTNERSHIP ON CRITICAL MINERAL SUPPLY CHAINS
"The Bank of Japan has been financing derivatives. Derivatives are a quadrillion [dollars]. That's 1000 trillion," he explained on "Cavuto: Coast to Coast" Thursday. "So we haven't seen the crash coming yet."
READ ON THE FOX BUSINESS APP
In addition to the issue with derivative markets, the financial legend criticized money-printing habits along with the Federal Reserve's aggressive rate hike strategy.
"Since 2008, interest rates have been dropping, dropping, dropping, dropping. All of a sudden, the interest rates are going up. [Federal Reserve Chair] Powell has raised interest rates faster than any time in history. So somebody says, 'well, he's playing Volcker.' Well, [Former Fed Chair Paul] Volcker raised interest rates over years. Powell is doing it over months," Kiyosaki said.
Kiyosaki argued against age-old advice on the Fed given the rapid pace of rate hikes.
"This idea of don't fight the Fed and all that, I think that's old advice. I would stay with gold and silver… I've been Chicken Little or Paul Revere for all these years, but I'd still rather have gold than this stuff," Kiyosaki said in the Thursday segment, pointing to a piece of paper currency.
The industry expert did not stop with his warning about a coming bank collapse, adding the implications could give China another avenue for asserting global dominance.
"Jim Rickards said it best. He calls it a currency war…so that's why I'm very concerned," Kiyosaki told host Neil Cavuto.
"China is coming after us," he added.
BRAZIL, CHINA STRIKE TRADE DEAL AGREEMENT TO DITCH US DOLLAR
While the U.S. dollar was made the global reserve currency in the 1940s, China has taken aggressive steps to compete economically and replace the dollar with the yuan. Their growing influence through efforts like the Belt and Road Initiative has only garnered more support for the communist country.
"The problem with Americans, we live in a fishbowl. We can't see how everybody can see. And right now, the BRICS, Brazil, Russia, India, China, South Africa, and Saudi Arabia, they're going to shift to the Chinese gold yuan, and that's going to send trillions of [U.S. dollars] back to us," Kiyosaki said.
CLICK HERE TO READ MORE ON FOX BUSINESS
Likening the global economy to a fault line, Kiyosaki warned these factors are already causing tremors and that investors should be on guard.
"The San Andreas Fault still sits there, which will make California fall into the ocean if that happens," he said. "But I'd rather not live on the San Andreas fault right now. That's all I'm saying."
Bank volatility has finally started to calm down, but the sector has underlying issues that will be harder to fix.
Three years into the pandemic, hybrid work has become the new norm for remote workers.
From R&D to manufacturing, the US semiconductor industry is one of the most advanced in the world. The American semiconductor ecosystem consists of developing materials and equipment for semiconductor production and research with universities across the country. Data on where all these operations take place are collected by the Semiconductor Industry Association. Mapping these locations reveals that research and manufacturing of semiconductors happens in almost every US state.
If you need to write a letter of explanation, there’s no need to panic.
The world’s biggest cryptocurrency exchange was sued this week by the CFTC. But a number of cases remain open.
The company today says it has 14 million active users, but almost consistently for the last decade, its financial position has been in a slow decline — with stagnation in its core business model, little success in efforts to diversify, declining revenues and ongoing losses. The Chicago-based company, which today has a market cap of just $103 million (a drop of 99.4% from its public market debut), has appointed Dusan Senkypl, a current board member, as interim CEO. Before Groupon, Deshpande was an exec at Zappos for more than a decade, and after he took the Groupon job, he continued to be based out of Las Vegas.
Shares of JD.com jumped after the e-commerce major said it would spin off its property and industrial units and list them in Hong Kong, joining Alibaba Group Holding in unveiling the latest restructuring of China's technology giants. JD.com surged as much as 8.1 per cent before paring gains to 6.9 per cent to HK$174.60 at the lunch break on Friday, mirroring a 7.8 per cent gain in its American depositary receipts on Nasdaq overnight. Beijing-based JD.com proposed spinning off its subsidiaries JD
Alibaba is prepared to let go of some of the business units created in the break up of its empire.
The Federal Reserve's favored inflation gauge slowed sharply last month, an encouraging sign in the Fed's yearlong effort to cool price pressures through steadily higher interest rates. Friday’s report from the Commerce Department showed that consumer prices rose 0.3% from January to February, down from a 0.6% increase from December to January. Excluding volatile food and energy prices, so-called core inflation rose 0.3% from January and 4.6% from a year earlier.
Regardless of what stage of the market cycle we're in, some folks never tire of searching for cheap stocks to buy. If it has thin trading volume, the fund manager will have an awfully tough time accumulating shares — without making a big impact on the stock price. IBD research also finds that dozens, if not hundreds, of great stocks each year do not start out as penny shares.
Yellen claimed many teams responsible for banking regulation were either drastically cut or completely eliminated before her tenure, and she’s had to “rebuild the financial stability infrastructure.”
Troubled regional lenders will starve indebted businesses and households of credit, trigger a hard landing, and turn a liquidity crisis into a balance sheet crisis, warns the noted economist.
The two partners say using zero-knowledge proofs will allow Bitcoin nodes to sync quickly from anywhere on earth, “even without Internet.”
Analysts have been reassessing Charles Schwab because of the impact of interest rates and uncertainty as to when relief might arrive.
Stronger Chinese-led emerging markets growth will likely buffer the stocks, bonds and currencies of many developing nations as markets in the United States and Europe are whipped around by banking turmoil. But weeks of volatility in global markets, spurred by bank failures, rescues and emergency government assistance, could knock vulnerable emerging economies, strategists said, necessitating careful picks. "The growth premium in favour of emerging markets driven by China is clearly even more confirmed," Alessia Berardi, head of emerging markets (EM) research at Amundi, Europe's biggest asset manager, told Reuters.
(Bloomberg) — A Nomura Holdings Inc. strategist is warning that investors are overlooking a crucial clue as they grapple with the path of US inflation and the Federal Reserve’s response. Most Read from BloombergTrump Faces Fingerprints, Mug Shot After Dramatic IndictmentWorld’s Top-Rated Airport Sees Immigration System RestoredHow King Charles Got Thrown Into Disney’s Fight With Florida Governor DeSantisTrump to Be Arraigned Next Week After Historic IndictmentStocks Rally as Traders Eye Peak Ra
Correspondent lending has its pros and cons.
Trading volumes for XRP spiked to billions of dollars on UpBit, Bithumb and Korbit, three of Korea’s top exchanges by volume, on the back of the token's 26% rise in the past week. CoinDesk Executive Director of Global Content Emily Parker explains the driving force behind the surge. Plus, new insights on the potential crypto regulatory framework happening in Hong Kong.
Customer deposits totaled $5.39 trillion at small banks in the week ended March 22, according to Federal Reserve data.
Stephen Schwartzman, worth $42 billion and at the head of a firm managing almost $1 trillion, says social media is what doomed the bank.
