Dollar Replacement news: China-Japan trade without dollars

Most of the American way of life as we know it is based on the "exhorbidant privilege" of the USD.  It is estimated, for example, that 45% of imports to America are totally free, based only on the dollar privilege as global reserve currency.   Thus, the loss of that status spells big changes for the American way of life.

A huge step forward in the dollar replacement process is taking place today, as Japan and China begin bilateral trade without the dollar.  The shift was just announced a couple days ago, and is being implemented immediately.  (http://english.peopledaily.com.cn/102774/7833022.html)

The winding-down of the dollar's role will occur slowly over years, absent any major political/economic shocks, such as war or revolution.    The dollar is also being strengthened currently (index value over 83) due to the problems in Europe.  There is no doubt that once Europe gets a handle on its currency situation, the dollar will begin a more serious slide.