Bye bye US Dollar

The news that China sold its first batch of sovereign bonds in Chinese yuan to foreigners last month points to the continuing demise of the US dollar. We are now in a transition period as the current global reserve currency the US dollar is gradually rivalled and then surpassed by the Chinese yuan.

So what will the effects of this change be? A worsening of the US dollar exchange rate and a hardening of the Chinese yuan. I also foresee the Euro, Yen and Sterling diminish against the Yuan, but probably increase against the dollar. The big winner will be GOLD.