America Is Bombing Iran. Wall Street Cheers.

America Is Bombing Iran. Wall Street Cheers.

Dear Reader,

The United States Air Force launched new strikes on Iran last night. Missile sites. Boats. Real bombs hitting real targets.

"US Central Command says the strikes were taken in self-defense."

Self-defense. We are three years into the most expensive war since Afghanistan, and they are calling it self-defense.

Here is what is happening at the same moment.

The S&P 500 is sitting at record highs. The mainstream press is running headlines about profit growth being the fastest in nearly five years. Stock market bulls are declaring victory.

War and record stock markets. At the same time. And nobody in the financial media is asking the obvious question.

Who is paying for this?

In Today’s Issue

• The war with Iran is real. The bombs are real. The cost is not on CNN's front page.

• Why record stock markets during a war should terrify you, not excite you.

• What history says happens to currencies when empires fund wars with printed money.

• What history says happens to currencies when empires fund wars with printed money.

Let me tell you what Wall Street is celebrating.

Oil prices dropped sharply this morning. Why? Because there are reports of peace talks in Qatar. Senior Iranian negotiators flew in over the weekend. The market decided the war might end soon — so stocks surged and oil fell.

This is the world we live in now. The stock market cheers during a war because it thinks the war might end. It was also cheering before the war started. And cheering while we were bombing.

The market does not price in reality. It prices in narratives.

Here is the reality nobody is pricing in.

The United States is $36 trillion in debt. When I started writing about this twenty years ago, people told me I was crazy. Now it is just a number too big to argue about. So they stopped arguing about it.

We are fighting a war in the Middle East. Wars cost money. That money comes from somewhere. Right now, it comes from borrowing. Borrowing means more debt. More debt means more money printed to service it.

"The U.S. appears close to reaching an agreement that would end the war with Iran and reopen the strategic Strait of Hormuz."

Notice what they are excited about. Not that the bombing stopped. Not that American pilots are home safe. They are excited about Hormuz reopening. Because that means oil flows and energy prices stabilize.

I have studied monetary history since 1971. Since Nixon closed the gold window. Since the dollar became a paper promise backed by nothing but faith in American power.

Here is what that history says: When empires fight wars they cannot afford, they print money. When they print money, the currency weakens. When the currency weakens, prices rise. When prices rise, the middle class gets destroyed.

Rome did this. Britain did this. Every empire that overstretched did this.

America is doing this right now.

The stock market going up does not mean the country is getting richer. It means the dollars measuring the stock market are getting weaker. You need more of them to buy the same thing. That is not wealth. That is inflation pretending to be wealth.

Here is the number that stopped me cold this morning.

The S&P 500 is at record highs. Meanwhile, since 2020, the dollar has lost over 20 percent of its purchasing power. Grocery bills are up. Rent is up. Insurance is up. Energy prices swung 30 percent on a single news story about Qatar.

A record stock market built on a weakening dollar is not a victory. It is a warning.

But before I tell you exactly what I have been doing with my own money in this environment...

...here is the escape hatch my rich dad taught me fifty years ago.

When governments debase the currency, you hold real things.

Not stocks denominated in weakening dollars. Not bonds from a government that cannot pass an audit. Real things. Gold. Silver. Land. Energy assets.

Right now, gold is near all-time highs. Silver is following. Not because people are panicking. Because serious investors are watching the same movie I have been watching for decades, and they know how it ends.

The good news: you do not have to be rich to play this. You do not need to be a Wall Street insider. My poor dad worked for the government his whole life and trusted the system. My rich dad bought assets the system could not touch.

The question is not if the dollar weakens further. It is how fast.

WARS COST MONEY. America is at war. The bill is coming.

I have been saying for twenty years: savers are losers. The currency erodes. The people who hold real assets survive. The people who trust paper promises do not.

Gold at $3,000 is not a bubble. It is a report card on the dollar.

Read it accordingly.

To your freedom,
Robert Kiyosaki

P.S. While Congress debates who controls the money, smart investors are already moving theirs. Here’s how to protect yourself before the next move.