Well, China ordered 160 planes from Airbus for about €10 billion and ordered another €8 billion of nuclear reactors from France's Areva. China will certainly be shifting more to Euros instead of US$.
It's events like these, that outwardly seem insignificant in the overall economy, that can trigger significant runs from the US$. In addition, China Investment Corporation is actively recruiting people from around the world to begin shifting its $1.4 trillion of foreign reserve investments away from US Treasuries and into alternate risk, global markets.
Markets will start reacting to this stories today.
I'm into big bear mode now on the US economy for next year - it could be the worst in our lifetime. I'm still convinced that the economy will be issue number one, come election time. Not one of the current presidential candidates is equipped to handle it, except Ron Paul. The rest will want to spend their way out, but no amount of additional deficit spending will fix anything. It will only deepen and extend the recession because it's more of the same foolish cosmetic growth that is part of the cause. This recession will be a different animal that will require concrete, systemic changes.
