Robert Kiyosaki, the financial expert known for predicting the Lehman Brothers collapse, has issued a warning that California is facing severe financial difficulties.
Speaking on “The Big Money Show,” he stated, “California is going bust amid poor financial management and fleeing residents.” His insights suggest a deepening fiscal crisis within the state.
Trendsetter Troubles
Kiyosaki has labeled California as the “lead state” in terms of setting financial and political trends that could negatively affect other states.
His assertion implies that the state’s current path might set a precedent that others would be wise to avoid if they wish to maintain fiscal health.
Warnings on National Television
During his appearance on national television, Kiyosaki did not hold back on his views regarding California’s economic state.
He said, “California is going bust,” a statement that reflects his concerns about the state’s ability to manage its finances and retain its population.
Social Media Insights
Robert Kiyosaki has also taken to social media to express his concerns.
In a post on X, formerly Twitter, in July, he criticized California’s financial management, indicating that the state’s issues are significant enough to warrant public discussion and concern.
Predictions of Financial Strain
On X, Kiyosaki outlined potential future financial measures, saying, “California will begin raising taxes and cutting subsidies to the poor, to prisons, environmental problems, and teachers unions.”
He predicts these actions will lead to increased crime rates due to reductions in public services.
Personal Decisions and Public Queries
After deciding to move away from California, Kiyosaki publicly questioned his followers, asking, “Is it time for you to move? I moved. ”
His personal decision to relocate was shared as a part of his broader commentary on the state’s economic conditions.
Business Owners’ Concerns
A survey conducted by RedBalloon and PublicSq. in February revealed that 86% of business owners in California have noticed an increase in crime.
67% are considering moving their headquarters out of the state due to the deteriorating economic and social environment.
High-profile Exits
Elon Musk, another influential business figure, decided to move the headquarters of SpaceX and X to Texas.
He criticized California’s laws, which he said attack “both families and companies,” calling this the “final straw” in his decision to relocate, as per his post on X.
Broader Implications
Kiyosaki emphasized the broader implications of California’s situation, warning that its status as a bellwether state means its problems could forecast similar issues across the United States.
This perspective reflects his view on the interconnectedness of state economies within the country.
A Trend of Departures
The trend of businesses and high-profile individuals leaving California could signify a larger pattern of migration away from states perceived as being unfriendly to business and personal freedoms.
This situation is evidenced by the relocation of significant companies and personalities.
The National Watch
According to Kiyosaki, California’s financial troubles should be a wake-up call for other states.
He believes that the fiscal decisions and political climate in California could serve as a cautionary example for others, potentially influencing their own policies and economic strategies.
Kiyosaki’s Final Words
In a direct quote from his social media, Kiyosaki said, “California is a BELL-Weather state. That means what happens in California happens to the rest of the US.”
This demonstrates his belief in the predictive nature of California’s economic health on the rest of the country.
