This is, of course, really bad news for US hegemonic power, which is 90%-based on the USD/FRN as the worlds reserve currency. Without the USD/FRN as global reserve, our government spending collapses along with our economy. Just remember that 40% of our govt budget is borrowed money, and 40% of our imports are not balanced by trade (just by dollars). So if the USD/FRN stopped being accepted everywhere, our federal budget would be slashed by 40%, which all by itself would send the economy into a depression.
The rest of the world is working as rapidly as they can to create an alternative to the USD/FRN note hegemony, and this agreement between China and Germany must be seen in that light. Before they can say "screw you" to our military/economic bullying, they have to set up an alternative system.
http://www.businessweek.com/news/2014-03-27/frankfurt-sets-sights-on-yuan-offshore-trade-as-xi-visits-merkel
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