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This post is part of the ongoing series reviewing Robert Kiyosaki’s new online collaboration The Conspiracy of The Rich. He opens Chapter Four with the question, “How long did the last Great Depression last? He says if you use the Stock Market as a measure it was 25 years, it took from 1921 to 1954 for the Dow to pass it’s previous high of 381. He argues the biggest crime of the current governments is to not let the bear markets do their job. The job of a bear market he argues is to clear out inefficiencies, faults and scams – essentially pressing the reset button on the market. But what we have done is to bail out the very Bankers who landed us with the very toxic debt they created. I was involved in a recent Linkedin discussion where a banker tried to argue it was the consumers and not the banks fault we had all this toxic debt. They should have known they could not afford to pay the debt back, never mind the fact the Banks were mailing Credit Cards, not just applications, but Credit Cards to people in the post. To me it was the clearest demonstration of the height of arrogance to which Bankers had risen. They genuinely don’t get that they caused the recession even now.

What he finds even more offensive, and I agree, is the behaviour of Executives who fired people by the thousands and then gave themselves cash bonuses or golden parachutes. He calls the bail out a form of socialism worse than Marxism. He says at least Marx tried to redistribute wealth, what this bail out has done is tax the poor and middle class to pay the rich.

He does not blame President Obama because he says the problem is systemic and has been going on much longer. To quote him, “It has become practice for the very rich to use our government to take from the poor and middle class and give to the rich. Today, we’ve made it a practice to tax those who produce and to reward the lazy, the crooked and the incompetent.”

This is why he says the Fourth New Rule of Money is; Prepare For Bad Times, And You Will Only Know Good Times. He says both he and his wife structure their businesses on this basis and therefore have been protected from the worst effects of the recession. His advice if you want to know how to prepare for a long recession, take someone from the last Great Depression out to lunch.

I believe it is essential everyone has the opportunity to survive and even prosper in this downturn, which is why my financial education, health and wellness programme will both educate you and give you a business if you have been affected by the downturn. Click here for further details.

This is part of the continuing series of posts examining Robert Kiyosaki’s online collaborative work, The Conspiracy of The Rich. We are now up to rule number 3 covered along with rule number 2 in Chapter 3 of the book.

The New Rule of Money Number 3 – Learn to Control Cashflow

Robert points out that on March 2, 2009 the Dow Jones dropped 6.763 points. This is what is meant by a “run”, money was literally running out of Wall St. Equities. The question he poses is, Where was the money running or flowing to?

He points out the most important phrase in business is – cash flow. You should control you own personal cash flow, and monitor global cash flows to avoid being caught out on “runs”. How do we monitor the world’s cash flow you might ask. He gives the answer as follows:

• Jobs – He points out that for years jobs in America have been flowing overseas. The same is true in the UK. Call Centre’s being a good example where greedy banks decided to outsource Call Centre’s to poorer developing countries like India. This has resulted in such a backlash in the UK that several banks are making a point of saying they have, UK only Call Centres in their marketing. Paradoxically it was these same banks that were amongst the first to outsource their Call Centres. As we have heard today General Motors has filed for the largest bankruptcy in US history with the government taking a 60% share in the company. Again because GM could not match leaner, fitter overseas car companies who in effect took jobs from GM.
• People – Note where people are moving to and invest in those areas.
• Cash – Where are people putting their cash at the moment? They are putting it into savings, bonds and gold.

We also need to teach that debt is only as good as your cashflow. By this we mean that good debt is debt that makes money flow into you bank account and bad debt is debt that makes it flow out. But to do this people need a good Financial IQ, this is because all money is now debt and educating people how to use debt sensibly will make the economy stronger.  Robert says we have a choice of Hope vs Education, we can hope President Obama’s fiscal package will save the world’s economy or we can put in place measures to make people smarter about the use of their money.

The question is where can you get financial education of the type Robert proposes? One of the reasons I became a Wealth Masters International Consultant was because I believed in the principles set out in Robert Kiyosaki’s Rich Dad Poor Dad series. I realised I had to invest in myself if I was going to become financially free. It is also why I believe in their Financial, Wealth and Health Program which not only teaches all the principles set out so far in the series on The 8 New Rules of Money but also allows you to set up in business your self passing on that education to other. To find out more about this recession beating opportunity click here.