The minute this happens, there will be major economic chaos and dislocations in the world economy.
The US is still the consumer of last resort for export driven nations and we prop up a lot of countries economies world wide.
The European socialist governments with the possible exception of Sweden, which lives off it’s natural resources,could not sustain their welfare systems exclusive of massive exports to the US because their stagnant economies cannot support their massive welfare programs with their internal economic activity.
China depends upon the fact that it’s currency is pegged to the dollar at 1992 exchange rates when China was a Third World backwater. If China had to live in a world where it’s currency assumed a strength commensurate with it’s economic power, its products would cost double what they do now which would kill it’s export trade world wide, and especially in the United States.
China and Australia have signed a currency swap agreement in a bid to promote bilateral trade and investment.
It will allow for the exchange of local currencies between their central banks, worth up to 30bn Australian dollars ($31bn; £20bn) over three years.
The deal is expected to reduce cost for businesses, as they will be able to settle trade terms in local currency.
http://www.bbc.co.uk/news/business-17471095
The Australian dollar is set to become only the third currency to trade directly with the Chinese yuan — a move that will help internationalize China’s currency and smooth transactions between the major trading partners.
The yuan, also called the renminbi, already trades directly with the U.S. dollar and the Japanese yen.
China is pushing to internationalize the yuan, and the currency is being used to conduct a growing number of transactions on international markets as Beijing loosens its grip.
Critics have long accused China of keeping its currency artificially low, making its exports cheaper and more competitive against foreign players.
But the currency has been allowed to appreciate recently, easing periodic tensions over the issue.
http://money.cnn.com/2013/04/08/investing/china-australia-currency/index.html