The end of 2011 marked another milestone in the demise of the US dollar. Until December, 26 2011, Japan and China have settled more than half of their direct trade with each other in the form of US dollars. This was accomplished by converting their own currencies, the Yen and the Yuan, into dollars, as trade between the countries occurred.
Both of Asia’s largest economies, and a host of other Asian players are fleeing the dollar, perhaps realizing that its prominence as a global currency is not what it used to be. The dollar’s middle-man status, previously clinched its position and continuing demand in emerging world markets.
The trend belies the dollar’s diminished status as a reserve currency. At the same time, Asian economies are putting their own fiat currencies at risk by creating international debt obligations in the form of bonds and currency swaps.
Currency backing with intrinsically valued assets, like silver and gold are becoming virtually extinct, as global fiscal policy seeks to follow North America’s lead into the abyss of worthless money.
http://goldsilver.com/article/squeezing-out-the-dollar/
