Argentina imploded in 2002.
It devalued its currency… defaulted on its bonds… and confiscated private pension plans. And it severely restricted the amount of money individuals could withdraw from their bank accounts.
For wealthy Argentine citizens, it was economic Armageddon.
Of course, this wasn’t the first time the country faced an economic crisis. Argentina is known to have wildly volatile boom and bust cycles. This bust, however, was more severe than its predecessors. The government used the crisis to break contracts, increase the scope of its power, and steal money from its citizens.
[ad#Google Adsense]In other words, Argentina suffered a currency crisis.
And as difficult as it is to accept, we may soon face the same thing in the United States.
The dollar is doomed. And despite my conviction that the greenback will enjoy a short-term bounce from today’s oversold levels, the Fed’s perennial quantitative easing programs virtually guarantee the dollar’s destruction in the long term. The U.S. is headed for an economic collapse. And it’s a pretty good bet if the U.S. goes down, it’ll take the rest of the world with it.
It’ll be a worldwide economic Armageddon – which seems inevitable, given the flawed policies of the world governments and central banks.
So, the obvious questions are… What can you do? How can you survive? Is there life after a currency crisis?
What better way to get answers than to take a closer look at Argentina? It’s been nearly a decade since the country’s economy disintegrated. If we want to know what the U.S. may look like a decade from now, we can get a pretty good picture by looking at Argentina.
My wife, Gabriela, and I are in Buenos Aires for the next few weeks. We flew down here to attend a cousin’s wedding. It’s Gabriela’s first visit to her home country in 19 years, and it’s my first time here, ever.
Argentina is not the country my wife remembers – the country she spoke of with such love and admiration. But neither is it the desolate hellhole you might imagine given the circumstances.
Instead, the country is in purgatory. The final destination is yet undetermined. But there are plenty of clues that point to its fate.
In all, it has been an eye-opening visit for me. And it’s helped me craft a plan for the best course of action should the U.S. follow a similar path.
I’ll share my ideas with you in my next few Growth Stock Wire essays. Until then…
Best regards and good trading,
— Jeff Clark
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Source: The Growth Stock Wire