The Great Recession




Inflation / Deflation & Fiat Money

Gold & Silver

Fixing The Problem

Our Current Downturn

Nearterm Outlook

  Real Estate





A currency crises arises when foreigners lose faith in a currency and begin to sell it en-mass (a speculative attack may also precipitate a currency crisis).  The unwanted currency returns to source and floods the country with cheap money.

The causes of a currency crisis are numerous, but typically involves a large buildup of foreign debt obligations (often >50% of total obligations), then an economic downturn which prompts holders of the currency to seek the safety of other moneys.

The results of a currency crisis are often large dislocations in an economy as prices rise (sometimes dramatically) for both local goods and imports.  The one benefit of a this type of economic crisis is a cheapening of export costs.

An Example: The Argentinean Currency Crisis of 2002

It's important to note that the currency crisis didn't come out of the blue, but was the result of a several years of economic difficulties.  The aftermath of the crisis was: the shutdown of the stock market; several weeks of almost no economic activity after the devaluation; protests & riots; the lowering of living standards for the middle class; a dramatic increase in crime; interruption of basic services (water, electricity, etc).  To get a better view of Argentina post crisis, read Surviving an Economic Collapse by Fernando Ferfal Aguirre.

What Would be the Signs of an Impending Currency Crisis?

How Can You Prepare for a Currency Crisis?

How about the United States?

Although the United States is still the strongest country in the world, it has number of weaknesses that could lead to something akin to a currency crisis.  Troubles include:

One the other hand:

Additional sources

  3. "Surviving the Economic Collapse" - Fernando Ferfal Aguirre