In the land of the blind, the one-eyed man is king.
Meaning: If the economy falls apart in Argentina, locals trade their currency for dollars. The same applies all over the world, when conditions look bad, don’t put your rupees in the bank, convert them to dollars.
People will also sell many marginal or “hot” investments, and convert the proceeds to US$.
Gold will initially fall as investors sell out of anything liquid to get US$.
Reason: You will need to buy food, medicine and fuel, and the currency of choice world-wide is the US$.
Now, the dollar is losing value in the long-term because the government refused to stop printing and acting as the first spender of printed money.
Oh......... Okay..........