20 Apr 2010

Rich Dad, Austrian Dad

Economics 6 Comments

Damien Forsythe emails to tell me that Robert Kiyosaki plugs the Austrian School and the Mises Institute at the 4:00 mark of this video:

Point of No Return from Conspiracy of the Rich on Vimeo.

6 Responses to “Rich Dad, Austrian Dad”

  1. Louis B. says:
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    To be honest the video sounds completely bogus. Did Mises talk about anything resembling a “point of no return?”

  2. Lucas M. Engelhardt says:
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    My impression is the same as Louis’s. It’s nice to get a shout out from Kiyosaki – but I strongly doubt that Mises actually wrote that 73% is the line for a “point of no return”. Neither the percentage nor the concept seem Misesian to me.

    Of course, I could be wrong.

  3. Jason says:
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    He said the Mises society. Not sure if Mises said it, but it’s referenced on Mises.org here.
    http://mises.org/daily/4244

    “And Professors [Kenneth] Rogoff and [Carmen] Reinhart show that when external debt passes 73% of GDP or 239% of exports, the result is default, hyperinflation, or both. IMF data show the United States already too far gone on both scores, with external debt at 96% of GDP and 748% of exports.”

  4. Lucas M. Engelhardt says:
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    Jason,

    Ah. That makes more sense. I had a hard time believing that Mises would say something like that. It is quite believable that Rogoff and Reinhart would, though. I’m kind of curious where they talked about that, now…

  5. fundamentalist says:
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    Lucas, it’s probably in their book “This Time is Different: 800 years of financial folly.” It’s a pretty good book with some flawed analysis.

  6. Marco says:
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    He just probably went to the Mises Circle and heard Doug French’s presentation in which he brings these numbers up.