Argentina & Cyprus Collapses: “Gold & Silver Protects You From These Events; You’ll Have Leverage and Resources”
March 26, 2013 | By Tekoa Da Silva
I had the chance yesterday to speak with Fernando Aguirre, author of a book entitled, “Surviving The Economic Collapse“, based on his first-hand experience of the 2001 economic collapse in Argentina. It was a powerful interview as Fernando and his family lived through one of the more extreme financial crises of Argentina’s modern history.
Part of what he experienced was a full banking-system shutdown cycle, a dramatic currency write-down, and the witnessing of human desperation that always follows. All of which he explained, is happening again in Cyprus, which may be, “the guinea-pig experiment” for the rest of the European Union.
When asked just how desperate people can become during these crises, Fernando commented that, “When we look at these things it just seems to be numbers; unemployment, inflation, etc. But on the street level when it’s happening…middle class people become poor, and those who were already struggling end up in pretty desperate situations. You see things like looting, you see things like…the slaughtering of cattle, that happened more than once [in Argentina]. Sometimes they [stole] the cattle on the highways…and people just desperately slaughtered the animals [for meat] right there.”
In watching the events unfold in Cyprus, Fernando commented that the process seems to be unfolding “play-by-play” in the same way it occurred in Argentina. “As we’re seeing right now, they ended up freezing people’s accounts, it’s not unlike what they did in Argentina. They freeze people’s accounts…many stores don’t accept credit cards, many of the suppliers want cash to keep the money out of the system, ATM’s run dry, and they do this on a Friday afternoon with a bank holiday the next Monday. People become pretty desperate.”
Warning that no country and no currency is safe today, Fernando added that, ”A person was writing me from Greece not that long ago, and he was saying that he was in a more comfortable position because he had his money in Cyprus which was outside of Greece…he explained to me that, ‘It’s like a fiscal paradise—lot’s of rich people have their money there’…[What's happening to him now] is unfortunate.”
With respect to the incredibly liberating power gold and silver can offer in this environment, Fernando said that, “Gold & silver are one of the things that protect you from these sorts of events…If you had ten ounces of gold in Argentina before 2001, after the crisis you were the happiest guy in the country. You had your money protected from what basically wiped out 60-70% of the purchasing power of people’s savings…Same thing in Cyprus. Instead of having $10k or $100k in a bank in Cyprus, if you had that same amount of money in gold, you’re not affected by all this that’s happening. You have quite a bit of leverage and resources.”
As a final chilling comment, Fernando concluded by saying, “I think things are getting more ‘third-worldly,’ globally speaking…Cyprus was the ‘guinea-pig experiment’ [for the Euro-zone]—it’s going to be happening in other places [next].”
This was a powerful interview with one of the few people in the world to document Argentina’s frightening 2001 currency & economic collapse. The event should be closely studied and compared to the unfolding collapse happening in Cyprus.
This interview is required listening for those looking to protect themselves and their families from such events.
To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:
To learn more about Fernando, you can visit his blog by: Clicking Here
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Tekoa Da Silva
Bull Market Thinking