Robert Kiyosaki warns of US 'Greater Depression' as debt soars
With credit card debt hitting $1.28 trillion and unemployment peaking in late 2025, the investor advocates for Bitcoin, gold and fractional real estate to hedge against potential economic instability.
Robert Kiyosaki has issued a stark warning that the United States is heading toward a "Greater Depression," citing record national debt and rising unemployment as primary drivers of an imminent economic crash. The author, best known for his book Rich Dad Poor Dad, argues that a collapse led by BlackRock's private credit sector is now arriving in 2026. While official data as of May 2026 confirms the nation has not yet entered a recession, Kiyosaki maintains that the structural debt issues he identifies pose a severe threat to the economy.
Supporting his concerns, recent figures show that total American debt has climbed to $38.9 trillion. Furthermore, credit card debt has reached an unprecedented $1.28 trillion, representing a 5.5% increase from the previous year. Unemployment also reached a significant high of 4.5% in November 2025, the highest level since 2021, before rebounding slightly to 4.3% in January 2026. Kiyosaki contends that these metrics signal a dark time ahead for Americans, despite the current official classification of the economy.
In response to these perceived risks, the investor advises individuals to protect their wealth by allocating funds to alternative assets such as Bitcoin, gold, silver and real estate. He specifically recommends utilising fractional ownership platforms to gain exposure to these markets with lower entry barriers. Kiyosaki has previously predicted that gold would reach $3,700 per ounce, a target that was exceeded in early 2026 when prices hit an all-time high of $5,419.80 before settling around $4,709. His long-term forecast for gold remains ambitious, with a target price of $27,000.
Regarding cryptocurrency, Kiyosaki's predictions have also seen validation in recent market movements. Bitcoin surpassed the $100,000 milestone in December 2024, aligning with his earlier forecasts. Although the asset has since experienced volatility and dipped below that level, Kiyosaki remains unconcerned by short-term fluctuations, arguing that the rising national debt ensures the purchasing power of the US dollar will continue to decline. He maintains a long-term view that Bitcoin could reach $1 million per coin by 2035.
Kiyosaki also distinguishes between primary residences and investment properties, arguing that owning a home one lives in is often a liability due to maintenance and mortgage costs, whereas rental properties can generate cash flow. To facilitate this strategy without the burden of property management, he points to platforms like Arrived and mogul. These services allow investors to purchase shares of rental homes or fractional ownership stakes in blue-chip properties for as little as $100, offering potential quarterly dividends and appreciation without the hassle of dealing with tenants.
Despite the compelling nature of his warnings, some of Kiyosaki's earlier claims regarding the erosion of retirement savings have not materialised. Data from Fidelity indicates that average 401(k) account balances actually increased by 13% by the end of 2025 compared to Q4 2024. Nevertheless, the author insists that the crash driven by the private credit sector is imminent and urges investors to act now to avoid becoming victims of what he terms "woke financial education."
