Replacement of the dollar will occur slowly. China cannot just back her currency with gold and let the US dollar fall. Overnight Chinese products will cost too much in foreign countries. No one can afford to buy Chinese made goods. If it happen today, there will be total chaos because too many financial systems use the dollar. Sudden conversion and devaluation will implode the world system. China will be engulf by the chaos. China will replace the dollar by the end of the 21st Century by gradual means. Too many freepers think China will use military power like Russia, but if one were to look at the strengths and weakness of US vs China, military power China is a distant second in terms of military budget and third in terms of firepower after Russia (who has 10,000 nuke warheads). However if one looks at China’s economic strength we see a different story. Right now China GDP just turn equal to US GDP. China foreign currency reserves is $ 2600 trillion while the US is only $150 trillion. China’s strength is financial not military. There is an old Chinese adage, cover your weakness by making loud threats, hide your strengths by being modest or silent. Unlike typical third world nations, China did not have a loud celebration or made major gov announcements when the world bank posted that China GDP is equal to or may slightly exceeded the US GDP. The PLA on the other hand has made aggressive demonstrations on sea disputes and their generals urged military action in public. IMHO China uses her PLA to make noise and draw attention away from her real national strength, which is financial. The US fleet will not be sunk by PLA missiles, but rather budget cuts as the US can no longer afford the ships. Example, China just commission her first carrier, the US navy may be forced to reduce her fleet by one carrier due to budget constraints.
they are several moves ahead of us geopolitically..