Fun fact is that China started trading oil for Yuan some weeks ago.

And there is no way US will attack China

so basically shit just hit the fan?

I take all conspiracy theories with a grain of salt, but Rick makes a good point about the value to the U.S. of its reserve currency status.

I would love to read a serious economic analysis of the impact of a gradual (or not so gradual) loss of reserve status for the USD.  The troubles in the euro zone will certainly protect, not harm USD reserve status in the short term.  Likewise political instability and weak institutions in China also help the USD.

On the other hand, the U.S. will inevitably continue to grow its government debt as long as people buy their bonds and misguided "quantitative easing" (*cough* monetizing the debt *cough*) does nothing to help the ongoing debasement.  

Unique economic factors that the U.S. still has going for it include: liberal work rules, lower overall taxes and a mobile work force, among other factors.  No other large economy in the world shares these attributes, but there is no guarantee the U.S. won't continue down the road towards a more European style democracy; Obamacare is the first step.

So what's left as a stable international currency of account?  Certainly gold will take on more importance, but I doubt we'll return to the pre-1970's gold regime unless things totally fall apart and large international companies and banks start insisting on gold denominated accounting.

For the large and growing group of small time international traders, a category that barely existed until the internet, bitcoin could become the equivalent of gold accounting due to its reduced costs and, uh, informal tax regime.  paul