The Paradox of the Rich: Why is he richer despite owing 1.2 billion dollars?

The bestselling book “Rich Dad Poor Dad” author Robert Kiyosaki recently revealed a big truth - he is carrying 1.2 billion dollars in debt. But this guy instead says that this is the reason he is “so rich.”

The core logic is very hardcore: he buys assets with debt, and does not use debt to buy liabilities. Ferrari, Rolls-Royce? Buy them outright because they are consumer goods. But real estate and commercial projects? Borrow money to buy because these will appreciate.

There is also tax arbitrage: investment debt can be tax-deductible in certain cases, so he claims that he pays almost no taxes—because he is a “borrower” rather than a profit-maker.

The most extreme thing is his attitude towards the US dollar: in 1971, the dollar “turned into debt,” so he doesn't hold cash, converting everything into silver, gold, and Bitcoin. “If I go bankrupt, the bank has to go bankrupt too.”

This viewpoint is controversial, but logically coherent: leveraging to stimulate asset appreciation vs. keeping cash that gets eroded by inflation. The question is - can the average person really handle this?