The rate at which the US dollar is being discarded from international trade is really alarming. If up until now the move out of the US dollar seemed to be somewhat limited, this seems to have dramatically changed recently.

We highlighted these worrying developments in a recent post titled “It is going to get really bad, really soon”.

We now hear China has opened a direct YUAN currency swap line with France. Where in the past we only used to hear of “US Dollar swap lines” from the FED to Europe and elsewhere, that is rapidly changing.

The big problem with this shift is that all those unwanted US dollars are going to start returning to the US treasury on a massive scale in which scenario any talk of the FED stopping to print money is smoke and mirrors. This shift will bring into the US more dollars that the FED would ever be able to print. This may be the “unforeseen event” that many have been warning about for years (including Lindsey Williams) that will force the Federal Reserve to dramatically raise the interest rates to prevent hyperinflation.

It may appear that we are indeed witnessing the final days of the US dollar as world’s reserve currency.