Aug 30 (Reuters) – Germany and China plan to conduct an increasing amount of their trade in euros and yuan, the two nations said in a joint statement after talks between Chancellor Angela Merkel and Chinese Premier Wen Jiabao in Beijing on Thursday.
Remember, Germany’s the economic engine of Europe, and China is the economic engine of Asia. Germany is the one the European Central Bank is pressuring to bail out the rest of the EU. If these two nations are going to conduct an increasing amount of trade directly in Yuan and Euro, what currency will they be decreasing their use of in trade? HMMMMMMM? And why would they want to do that? HMMMMMM?
If you are preparing yourself for an incredibly higher-cost-of-living future, I believe you are doing the right thing. When USD loses its reserve currency status, the petrodollar standard collapses and energy costs skyrocket. Items with a high energy component in their price (like food, especially fresh food) will also feel the love.