003-2020 Fake

Title: Fake (The truth of Fake-Money, Fake-Teachers and Fake-Assets)

Author: Robert Koyosaki

This was the second book that I took to read from the author Robert Kiyosaki. The first book he published, and which has sold world-wide is ‘Rich Dad, Poor Dad’ of which I have also previously written a review.

When I stood in the book store to look at a new book to read, my thoughts were with investing and whether there was a book that could explain how we can distinguish useful and true information/news in the media from the fake news, and thus use the true news to assist with making proper and informed investment decisions. That’s where I came across this book, which I believed to have just that.

However, it may not have held the information I was looking for at the time, it did give me valuable insight in another respect, which I am glad to have obtained from this accidental selection.

In the beginning he makes it clear that he wishes to teach the reader about three big lessons: 1) Fake Money, 2) Fake Teachers and 3) Fake Assets. The book breaks those lessons into the different chapters, but reference is made to those lessons continuously, that all three should be taken together to assist in the attainment of financial wealth.

1..Fake Money – He introduces you to the three forms of money that we currently have in the world today : Gold (God’s money), Currency (Government money) and Cryptocurrency (People’s money). The lesson he holds is that the government’s money is only worth so much as much the people have faith in the government. That the government is able to print more and more money (which could have severe economic consequences). If people (or the world economy) loses faith in the government, the demand for the currency drops, and the abundant supply in circulation makes it less valuable. This is all in the hands of the government, whereas God’s Money (Gold, Silver) is in your hands, and cannot be printed in more quantities by the government if it is in a difficult situation (as with paper money for Quantitative Easing or Troubled Asset Relief Programs).

2. Fake Teachers – He criticizes that the education that is taught in schools is only to produce people to become active members of the working society. This is definitely essential, of course, for a modern economy to function. However, it doesn’t teach anyone about financial education, which is also essential in any economy, which is mostly a driving force into a better age. Also, he distinguishes between true teachers and fake teachers, those who teach what they have experienced from the real world, and those that teach the theoretical aspect without having applied it themselves in the real world.

3. Fake Assets – Here he makes a clear distinction between what is an Asset and what is a Liability to your pocket. Not just that, but also what constitutes real Assets (tangible), and fake Assets (paper investments).

I have given the briefest of explanations of what was covered in the book for the three lessons, but there are many more in the book. Therefore, I would say that should you wish to get the true benefit of the lessons that he wishes to teach his readers, buy yourself a copy of the book instead of reading my short review. It has more, and explains it much better.

Three other things I wish to share with you, which I didn’t mention above, but thought truly fascinating to share were:

  • 1971 when Nixon took the Dollar off the Gold Standard (ie. a currency’s strength is not determined by the volume of gold reserves that are held in the country), and the government money was no longer backed by tangible Gold reserves. Government money was now only debt.
  • That one should use debt (with Government Money) only to buy real Assets, which generate recurring income
  • Tax should not just be seen from the perspective of the government taking money away to fund its activities, but also from the perspective that it provides incentives to individuals that take on projects for society, which benefits the people, thereby the incentive is tax deductible

Therefore, I definitely gained much more insight in many topics, and will be on the look-out for more of his books and teachings in the future.

Summary:

Terrific reading material, well-written, easily understandable and the knowledge gives every reader something to think about. As he closed off his first book (Rich Dad, Poor Dad) he said “every decision you make with every Dollar you hold today, will influence your future life” – not those precise words, but the message is clear. Rating I afford is 4.75/5 🙂