China, the USD's Reserve Status, Brics and Japan

[Ian56]

China is rapidly moving to marginalise the USD by signing up non USD trade deals with the other Brics, Japan, South Africa, Australia and other African countries.

If confidence is not restored in the US Dollar, by reducing the deficits, it is only a matter of time before it loses it's Reserve Status.
If the US loses it's Reserve Status it would no longer be able to run a trade deficit.
The USD would very rapidly decline by a very substantial amount.

News today that Japan has moved firmly into China's camp not the USA's.
See latest update at the botom of the link.

http://ian56.blogspot.co.uk/2012/02/greek-scenario-and-us.html

[sailingaway]

wow. Wrong forum, though.

[Ian56]

Which forum should it go in - can you move it?
And i will know for next time

[Seraphim]

As usual, Zerohedge front running the news:

http://www.zerohedge.com/news/china-and-japan-dropping-dollar-cross-rate-system-will-transact-directly

Yes, the USD is going to lose it's reserve status...and it's going to happen soon. I'm actually starting to think that the Euro crisis will be the catalyst to the USD falling. It may provide temporary support for the USD...but as banks in Europe fall, their over leveraged, inbreeding American counter parts will as well.

[Noble Savage]

I feel sorry for anyone with a lot of dollars

[Seraphim]

Here is news from Friday as well. Australia and China doing the same thing.

http://www.crikey.com.au/2012/03/23/australia-china-currency-swap-really-is-a-big-deal/

[Noble Savage]

Hong Kong Craigslist!!!! The Chinese got all the duckies!