Interesting Fact: on Hyperinflation (by Imad Moosa)

Several triggering factor can cause a run on the dollar and the loss of confidence, leading to hyperinflation:

1. A serious rush to gold triggered by the euro crisis may lead to a loss of faith in any fiat currency, including the dollar.

2. Big holders of Treasury bonds off-loading their stocks and buying real estate or commodities.

3. Intensification of quantitative easing, which is already happening.

4. Failure of a US bond sale.

5. Oil countries are taking a collective decision to stop using the dollar to settle oil transactions.

6. BRIC countries deciding not to use the dollar as the currency of invoicing in international trade.

7. One of more countries that currently peg their currencies to the dollar could decouple from the dollar.

8. An audit of the Fed might uncover something disturbing. For e.g. instead of holding 8,000 tons of gold, the Fed may have much less because of the amounts that have been lent to companies that cannot pay back.

9. China might switch to buying international commodities in yuan instead of dollars.

10. A currency crisis in a country with dollar reserves could make people worry that country would start selling dollars.

11. It might be disclosed that some substantial pressure was put on banks or some foreign country to buy the US bonds.

 

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