It’s time to cash out of California while the times are still good.
At least, that’s what you should be doing if the prediction made by financial expert Robert Kiyosaki sounds likely.
Kiyosaki made a name for himself in 2008 after correctly predicting the fall of global investment bank Lehman Brothers a full five months before the institution’s shocking collapse. More recently, he called growing trouble in the bond market and banks tied to it last year.
“California is a BELL-Weather state,” Kiyosaki wrote last week on the social media platform X. “That means what happens in California happens to the rest of the US.”
“The problem is California is going broke,” Kiyosaki continued.
“California will begin raising taxes and cutting subsidies to the poor, to prisons, environmental problems, and teachers unions. That means crime will spread as police will be cut.”
Kiyosaki appears to again be correct on the general downward trend California is chasing.
The Golden State’s desperate situation was hinted at as early as 2018, when then-Gov. Jerry Brown revealed in a budget briefing that California would soon have the power to cut existing government employees’ pensions as a cost-saving measure.
Since then, an increased hostility toward capitalism and attempts to pass off welfare costs onto businesses, most notably through a massive hike in the state’s minimum wage, has chased money and opportunity away from California.
Do you believe California will collapse?
A San Francisco McDonald’s that had operated for over 30 years in the area was forced to close after the state raised the minimum wage to $20 per hour. A 55-year-old Hollywood Arby’s suffered a similar fate, with countless more restaurants and small businesses also folding to the insurmountable labor costs.
Another disturbing trend accompanying and undoubtedly linked to the decline in business is the rise in crime.
High rates of violent and property crime have become hallmarks of California cities, where hobbled and demoralized police departments struggle to maintain law and order.
The issue is so ubiquitous that even journalists reporting on crime have become victims of their subject matter.
Other massive problems plaguing the state include deadly drug epidemics and associated gang empowerment.
Kiyosaki doesn’t see a light at the end of the tunnel for California, but instead hinted the state’s problems will soon be suffered by other members of the Union.
California is a BELL-Weather state. That means what happens in California happens to the rest of the US.
The problem is California is going broke. California will begin raising taxes and cutting subsidies to the poor, to prisons, environmental problems, and teachers unions.…
— Robert Kiyosaki (@theRealKiyosaki) July 29, 2024
“Since California is a Bell Weather state and is going broke,” Kiyosaki wrote, “which states will follow?”
The economist admitted he has abandoned California altogether, apparently seeing no bright future in the state.
“I moved,” he wrote. “Take care.”
