Australia’s economic dependence on China is actually a blessing for the country’s economy, particularly at a time when several first-world nations, including the US, are on the brink of Covid-induced recession, says Robert Kiyosaki.
“The US economy is in the middle of a perfect storm. This is because the US has been printing more money, and the unemployment rate is also rising there due to the impact of Covid. But Australia is a resource exporter. As long as China and the Chinese were making a lot of money, so will Aussies,” he told the Digital Finance Analytics podcast recently.
In fact, for the past decade, China has been Australia’s biggest trading partner, accounting for nearly 32.6% of its exports. From iron ore, coal and gas to education services—China buys these goods and services from Canberra.
While many economists have been urging Australia to reduce its reliance on China and look to other trading partners, including India, Kiyosaki feels this is actually good for the country. But he has a word of caution. “If US President Donald Trump and the Chinese President go to war, well that affects Australia. I think that’s kind of the thing you got to watch out for.”
This is because “if America catches a cold, Australians get pneumonia”, the US businessman said to bolster his argument in favour of Australia’s dependence on the world’s second largest economy.
The other thing that Kiyosaki asks Australians to watch out for is the increasing dependence on technology. “Technology replaces people. The other day a truck company said they’ll have driverless trucks on the roads in 2021. Well in America that’s three million drivers who are out of work and then the ripple effect around them,” he said.
“Plus Zoom, it is gonna put school teachers out of work as they now no longer have any control over students. There is a technological wave continuing to develop and it’s changing a lot of things. That’s one reason why of course the tech stocks are very high relative to other stocks at the moment,” the founder of the Rich Dad Company said.
Recalling his days with the US Marine Corps during the Vietnam War, Kiyosaki also lauded the “tremendous spirit” of the Australians, be it in battles or sport.
“The thing I love about Aussies is you have a tremendous spirit, you know in sport and all that you guys are unstoppable. When I was in Vietnam, we had such respect for the Aussie and Kiwi fighters… and on the other side of it, Aussies have very big hearts,” he told host Martin North, also an economist.