http://www.kitcocasey.com/articles/2...

Last week, we heard about how China had passed the U.S. as the number one trade partner of Brazil... Now, I'm hearing about how Brazil and China are in discussions to form a currency swap line, just like the one China signed with Argentina two weeks ago. These currency swap lines are HUGE, folks. Because they allow the two parties doing trade with one another to eliminate the use of dollars and only use their own respective currencies. That means, China reduces its exposure to the dollars! And if China has less dollars to spend on U.S. Treasuries, that's not a good thing! But almost as important as that is the thought that China is spreading the use of their currency... This thought plays well with the idea that China proposed last month... That the U.S. dollar be replaced as the world's reserve currency.

China has now signed currency swap agreements with: Indonesia, Malaysia, Hong Kong, South Korea, Belarus, and Argentina, with Brazil waiting in the wings...