Bank of France Seeking Yuan Liquidity Agreement for Euro Area

I've said it once, I've said it a trillion times:  the USDollar is doomed as the global reserve currency.  It will have to share that title (and responsibility) with other foreign currencies (and gold) going forward.  China has already signed bilateral trade agreements with Brazil, Russia, Australia, and all its trading partners to set up the yuan as one of those reserve currencies--only the yuan will be backed by gold (as will the ruble, as both China and Russia are accumulating gold faster than Justin Bieber is piling up speeding tickets).

Why should you care whether the dollar remains the reserve currency, a privilege and perch it has enjoyed since 1944 with the establishment of the Bretton-Woods agreement?  Because once dollar hegemony is lost, it will no longer be needed for international trade settlement (i.e. crude oil trade).  Foreign countries holding vast USDollars and dollar-denominated assets (e.g. US Treasury bonds) will dump them en masse, tanking the dollar in the process.  Import prices in the US will soar.

This, all thanks to the Fed QE'ing us into oblivion by printing trillions of dollars and pinning interest rates to zero (by the way, retirees on fixed incomes are thanking Bernanke for forcing them to eat dog food in their twilight years--which is one cut below the 48 million Americans on food stamps).

When will all this happen?  Nobody knows.  But Volcker is right:  our whole economy is based on trust and confidence.  The trust in government is already eroding.  But once confidence in the dollar's store of value vanishes, the "CON" in confidence will be exposed.

Since we're talking about France here:

Le numéraire dollar n'est pas plus, mon frère.

http://www.bloomberg.com/news/2013-05-28/bank-of-france-seeking-yuan-liquidity-agreement-for-euro-area.html