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.
**Share this Magazine with your executive co-workers/friends!
Follow the Magazine: https://businessleadershipmanagement.wordpress.com/subscribe-follow-the-magazine/ (After you have filled in your email address in the column at the right hand side of the screen, a confirmation email will sent to your email address. You will have to confirm it before subscription begins)
Follow us on Twitter: https://twitter.com/BusinessLeaders
Like us on Facebook: https://www.facebook.com/BusinessLeadershipManagement
**As part of the Magazine’s drive to reward subscribers/followers, we will be providing subscribers/followers special access to exclusive content which will not be otherwise available to normal visitors. Please be sure to subscribe to the Magazine. Many visitors have given us positive comments that they will be bookmarking the site, but as the system is unable to capture a working email address to which the passcodes for exclusive content will be sent, they will miss out on this content. Do note that passcodes are locked to each exclusive content, not a one-for-all access, so do provide a working email address that you check regularly so as not to miss out on them!