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A fast-spreading currency crisis could cause major economies to collapse and wipe out the value of dollar-denominated accounts across the country. Here’s what’s going on right now. Three large national economies: Argentina, Turkey, and Venezuela, are currently collapsing because of their own respective currency crises.
Think about this: Every citizen of Argentina experienced the equivalent of a 45% pay cut in 2018 because of that nation’s currency crisis. That’s because the Argentine Peso has lost 45% of its value in 2018, CNBC is reporting. Consequently, Argentine families can now buy only half the essentials (including food) that they could earlier in January. But not just that, Argentines have lost 45% of their savings and investments as well. Nevertheless, it is not quite over for Argentina’s economy. In fact, it’s likely to get much worse since the country’s inflation rate is 25.4%.
Venezuelan Chicken Costs 15 Million Thanks To Their Currency Crisis
Venezuela’s economy is being destroyed by a currency crisis. A chicken costs 14 million Bolivars (Venezuela’s currency), The Guardian reported. International Monetary Fund (IMF) economists estimate that Venezuela will suffer one million percent inflation this year.
Bolivars are so worthless some workers are being paid in eggs in Venezuela. As an illustration, a U.S. dollar is worth seven million Bolivars. Significantly, The Los Angeles Times calculated that 7% of Venezuela’s population, or 2.5 million people, fled the country.
Consequently, President Nicholas Maduro is trying the fix the economy by raising the minimum wage by 3,670%. Maduro is also raising sales and other taxes.
Turkey is another country in trouble. Turkey’s rate of inflation is now 15%. That means every Turkish citizen suffered a 15% pay cut in the last year. A deep national deficit that equals 6% of the country’s Gross Domestic Product (GDP) is driving the Turkish currency crisis, Forbes writer and credit strategist Michael E. Lewitt believes. Lewitt thinks Turkey will never be able to pay its debts and is inflating its currency to temporarily juggle the debt. However, this path of action is unavoidably destroying the currency as a result.
Currency Crisis Threatens Your Savings
The currency crisis is now spreading to other nations, Bloomberg writer Satyajit Das reveals. Das thinks currency crises will quickly erupt in India, Indonesia, Brazil, and South Africa next. High national debts and unsustainable consumer debt will cause those nations’ currencies to collapse. Average people and retail investors will get caught in the middle as purchasing power disappears but debt remains.
The currency crisis is already shrinking U.S. retirement accounts. The U.S. stock markets had debt related setbacks on August 29 because of the Argentine and Turkish crises, Reuters claims. Notably, the S&P 500 was down by 7.3% from 2017 on Thursday. Meanwhile, Marketwatch expects the NASDAQ to fall by 1.9% this week.
The Currency Crisis Will Come To America
A more intensified currency crisis is also likely to reach America in the near future. Existing currency issues in other nations put pressure on America’s economy by lowering demand for our goods. There is compelling evidence that the United States is very vulnerable to a currency crisis. For example, economists project that the federal deficit will rise to $833 billion in 2018. The deficit was already at $665 billion in 2017. Economists blame similar deficits for the currency crises in Argentina and Turkey.
The bad news is that America’s consumer credit bubble is growing dramatically. Particularly, the amount of auto and student loans nationwide increased by $10.4 billion in June alone. Some see the student debt trend line as catastrophic since 44 million Americans owe an estimated $1.5 trillion in student loan debts.
The truth is that the world is experiencing the beginnings of an enormous currency crisis that has the potential to devastate America’s economy. Thinking Americans should prepare for the coming currency crisis by reducing debt and diversifying their dollar-denominated accounts. Gold and other precious metals can be important hedges in a currency crisis.
You may also enjoy reading an additional Off The Grid News article: Will The Debt Time Bomb Blow Corporate America Apart? 
Or download our free 37-page report that discusses how to keep your gold safe and secure: Hide Your Gold 
We also have a free 39-page report on actions you must take when the markets get spooked: Bank Run 
What are your thoughts on the potential of a rapidly spreading currency crisis? Let us know in the comments below.