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

4. Inflation is rising. 
On January 4, 2000, an ounce of gold cost $282.
Ten years later, on December 30, 2010, the same ounce of 
gold cost $1,405 an ounce.
In the last decade, when measured against gold, the U.S. 
dollar lost 398 percent of its value.
On January 4, 2000, oil was $25 a barrel.
By December 31, 2010, oil was $91 a barrel.

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Introduction
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The United States has three basic options. They are:
1. Default on our debts, aka declare bankruptcy. This will change 
the world economy.
2. Cut spending, increase taxes, and pay bills. This will change the 
world economy.
3. Print more money, kill the dollar, and pay the bills with
counterfeit money. This will change the world economy.
The average person, like the monkey with its fist stuck in a tree, has 
no idea what is going on with the U.S. dollar or the world economy. All 
the average person cares about is making enough money to put food on the 
table and keep a roof over their head.
Like a monkey clinging to what they have, the average person actually 
believes the money in their grasp is real money. The average voter actually 
believes their elected officials can solve this global financial crisis. Few 
people realize the global financial problem is bigger than any one leader or 
one country.
In this book you will discover how the rules of money are different 
in the Information Age and how to adapt to the new global rules
of money.
In 1972, President Nixon opened the door to China. Today, China 
is a very poor country rushing to become the world’s next superpower.
In the coming decade, China will continue to grow economically 
but will also grow more unstable as they battle inflation, position for 
more world political clout, and push for an international reserve currency 
outside of the U.S. dollar. Additionally, the economic growth will cause 
trouble internally as the divide between the rich and the poor grows. 
Their instability will cause financial ripples, economic booms and busts 
that will be felt throughout the world.
Like most monkeys, the average person can see the trees but not the 
forest. Americans are probably in a worse condition, however, because they 
live in a fishbowl where the world looks in at us, but we cannot see the 
world outside the fishbowl.
The following are events that will make the next decade tougher for
those with limited financial education:
•
Baby boomers will retire. In the United States alone, there are 
78 million baby boomers. It is estimated that 52 percent of baby 
boomers do not have enough retirement savings or investments 
to live on. Social Security and Medicare are broke. Financing 
these programs will require more taxes from generations born 
after 1964.
•
More jobs will be lost. National, state, city, and local 
governments are short of money. Many are technically bankrupt. 
•
From 2007 to 2010, most of the job losses were in the private 
sector, in large corporations and small businesses.
•
The next job losses will come from the public sector. Millions of 
government jobs will be lost in the coming decade. This means 
higher taxes, fewer services, and more unemployment.
For example, in January 2011, Camden, New Jersey, the second
most-dangerous city in the United States, cut its police force by
50 percent. Camden also reduced the number of firefighters and 
government workers.
Who wants to live in Camden if crime and fire losses increase?
What does a loss of government services do to property values?
In spite of rising unemployment and the loss of traditionally safe jobs, 
like a monkey clinging to his fruits and nuts, people are returning back to 
school to train for a new job, higher pay, benefits, and a good pension plan.
This book presents you with some new ideas on what types of 
education will better prepare you for the future.
In 2010, the U.S. debt was $14 trillion. In reality, according
to the National Center for Policy Analysis, the United States owes 
$107 trillion when Social Security and Medicare are added to the bill. 
This means the United States is bankrupt.

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Introduction
Unfair Advantage
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In the Information Age, we need the following three types of education:
•
Academic
•
Professional
•
Financial
The following question thus arises: 
Why isn’t there any financial education in schools? 
The answer: 
Humans trap and train monkeys in school.
If a person has a solid financial education, they will not cling so 
tightly to job security, a steady paycheck, and a pension. If a person 
knows the tax laws, they will not pay unnecessary taxes. If they 
understand the banking system, they will not save money. Rather 
than call their home an asset, they will know that it is a liability. If 
they understand inflation, they will not try to live below their means. 
Rather than get out of debt, they will learn how to use debt to gain 
wealth. And they will not mindlessly turn their money over to
Wall Street bankers, financial planners, and real estate agents in the 
hope of obtaining a secure retirement.
Most importantly, they will question why they are going to school, 
who their teachers are, and where their education is leading them.