What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Level 2: The Savers-Are-Losers Level
Many people believe it is smart to save money. The problem 
is that today, money is no longer money. Today, people are saving 
counterfeit dollars, money that can be created at the speed of light.
In 1971 President Nixon took the U.S. dollar off the gold 
standard, and money became debt. The primary reason why prices have 
risen since 1971 is simply because the United States now has the power 
to print money to pay its bills.
Today, savers are the biggest losers. Since 1971, the U.S. dollar 
has lost 95 percent of its value when compared to gold. It will not take 
another 40 years to lose its remaining 5 percent.
Remember, in 1971, gold was $35 an ounce. Forty years later, 
gold is over $1,400 an ounce. That is a massive loss of purchasing 
power for the dollar. The problem grows worse as the U.S. national 
debt escalates into the trillions of dollars, and the United States 
continues to print more counterfeit money.
As the Federal Reserve Bank and central banks throughout the 
world print trillions of dollars at high speed, every printed dollar means 
higher taxes and more inflation. In spite of this fact, millions of people 
continue to believe that saving money is smart. It used to be smart 
when money was money. 
The biggest market in the world is the bond market. “Bond” is 
another word for “savings.” There are many different types of bonds for 
the different types of savers. There are U.S. Treasury bonds, corporate 
bonds, municipal bonds, and junk bonds.
For years, it was assumed that U.S. government bonds and
government municipal bonds were safe. Then the financial crisis of 
2007 began. As many of you know, the crisis was caused by mortgage 
bonds, such as mortgage-backed securities or MBS, also known as
derivatives. Millions of these mortgage bonds were made up of
subprime mortgages, which were loans to subprime or high-risk
borrowers. You may recall that some of those borrowers had no income 
and no job. Yet, they were buying homes they could never pay for.
My point is that it is never the investment or asset class that is
important. Success or failure, wealth or poverty, depends solely on
how smart the investor is. A smart investor will make millions in the
stock market. An amateur will lose millions.
Tragically, most people do not think learning to invest is important. 
This is why most people believe investing is risky and turn their money 
over to “experts,” most of whom are not really investors, but sales people 
who make money whether the investor makes money or loses money.
There are five types or levels of investors found in the I quadrant.