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

2. Saving Money
Why save money when our governments are weakening the 
purchasing power of our money?
As you know, after 1971, money stopped being money and 
became debt. 
Prior to 1971, the United States was required to have gold backing 
the dollar. But when the United States was importing more than 
we were exporting, gold was flowing out of the United States. 
When France demanded payment in gold, Nixon took the dollar 
off the gold standard. 
After 1971, if the United States needed money, they just printed 
money. Today, they do not need a printing press. Today money is 
digital, just an electronic blip on a screen. 
To create money, the U.S. Treasury issues a T-bond, T-bill,
or T-note, which is simply an IOU from the taxpayers of the
United States.
Let’s say the U.S. Treasury issues a $10 million T-bill.
Private investors, banks, and countries such as China, Japan, and 
England buy this T-bill, which is debt, an IOU. Many people like 
U.S. debt because our debt is considered the safest of all debt, 
especially since we can print money to pay off our debt.
The problem is that if the world suddenly does not want our debt, 
the Fed will print even more counterfeit money. This will lead to 
inflation and possibly hyperinflation.
Quantitative Easing
If no one shows up to buy U.S. Treasury debt, then the Federal 
Reserve Bank steps in, writes a check (even if there is nothing in 
its account) and buys the bond. When the Fed writes a check, it is 
creating money out of thin air, which is the reason they call 
Fin Ed History
The worst dictators in modern history came to power during times 
of financial crisis. 
Hitler came to power in Germany, Mao came 
to power in China, Lenin in Russia, and Milosevic in Serbia and 
Yugoslavia during an economic crisis.
Hitler and U.S. President Franklin Delano Roosevelt (FDR) came 
to power in the same year, 1933. FDR, while greatly loved, created 
many of the financial institutions that caused many of the financial 
challenges the United States faces today. Some of his creations are 
Social Security, Federal Deposit Insurance Corporation (FDIC), and 
the Federal Housing Administration (FHA). He also took the United 
States off the gold standard in 1933. 
Many people believe it was World War II that brought us out of the 
Depression. While the war did increase U.S. productivity and its 
balance of payments, it was the Bretton Woods Agreement of 1944 
that restored the gold standard and increased the power of the U.S. 
dollar and the United States in the world. In 1971, Nixon broke the 
Bretton Woods Agreement with the world and today we are in a crisis 
again, facing a possible new depression.
The collapse of the gold agreement is known as the “Nixon shock.” After 
1971, prosperity was created in America through debt and inflation 
rather than manufacturing goods that the world wanted to buy. 
Without the discipline of gold, the Federal Reserve Bank embarked 
upon a process known as systematic inflation. The United States 
enjoyed good years because the economy was based upon ever-larger 
quantities of counterfeit money. America’s national debt is a Ponzi 
scheme of debt and fiat currency, paying off debt with taxpayer dollars 
that are worth less and less.
This system survives as long as the rest of the world goes along with 
the cash heist. If the world wakes up to the fantasy that you can buy 
things with phony money, the fantasy is over. If the U.S. dollar goes, 
the United States will go with it. 
This is where we are, as I write in 2011. Americans are in debt for 
generations to come.

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Chapter Four
Unfair Advantage
125
124
When the Civil War broke out, the Confederate States printed the 
Confederate Dollar with the same results.
Germany did the same thing after World War I, and the German 
people began using the Reichsmark for wallpaper, to start fires, and 
probably for toilet paper. When the German economy collapsed, 
Adolf Hitler came to power in 1933, the same year President Franklin 
Delano Roosevelt took the dollar off the gold standard.
In my wallet I carry a fresh Zimbabwe $100 trillion note, which 
numerically is $100,000,000,000,000. At one time, it bought three 
eggs. It purchases less today.
Today, Federal Reserve Bank Chairman Ben Bernanke is printing trillions 
of dollars and President Obama is spending trillions of dollars.
Phony money causes wars between nations as well as wars of real 
money (gold, silver, food, oil, things with intrinsic value) versus pieces 
of paper with ink on it.