News of Russia and China Dumping Dollar in Favor of Own Currencies Ignored

I just wanted to write a quick blurb to put the issue of China and Russia trading in their own currencies back on the radar (a news story which broke on November 24, 2010 the day before Thanksgiving). This story has been drowned out by the North Korea versus South Korea conflict and Irish debt crisis, which have dominated the mainstream financial news. There definitely is a trend developing where the US dollar is being dumped in favor of other means of exchange, such as Brazil and China slowly eliminating the US dollar in favor of the Real and Yuan (announced back in June 2009). [1]  As Marek Kuchta of Gold in Mind points out in his recent article China and Russia Dump Dollar in Mutual Trade - No Big Deal in the Short Run, it is news in itself that Russia and China dumping the dollar in favor of their own currencies for bilateral trade did not get more attention in the western mainstream media:
...
"At the time of this writing [November 25, 2010], it has been about 8 hours since the announcement which was extensively covered in the Chinese and the Russian media as well as the financial blogosphere. The author of this article has even managed to make a YouTube video about it. Yet, there is no mention of it on any of the top financial media outlets, despite this being probably among the top 3 news for the dollar this year in terms of importance. All you hear about are the great Thanksgiving sales numbers, the "soaring stock market" and the PIIGS. All is good in America." [2]

The YouTube video mentioned in the above quote has been embedded here for your convenience:


The implication of the US dollar falling away as the world's reserve currency is pretty grim.  Since the dollar is the primary currency used to trade such valuable commodities such as oil, this creates a certain level of demand (for dollars) and prevents the dollar from becoming completely worthless.  Quoting myself from the article EUR/USD is 7% Backed by Gold What Backs the US Dollar?:
...
"The phenomenon by which oil dollars are repatriated to the US in the form of investment (often US Treasury Bills) or purchase of goods and services is called petrodollar recycling, which does lend intrinsic value to the dollar."
...
"2. If OPEC as a whole, or more and more countries start to trade oil or other commodities in other currencies other than the US dollar, the dollar will sell off." [3]

This of course means we in the US will be able to buy and afford less as the demand for dollars wanes.

Sources:
___________________________________________________
1. Brazil-China bilateral trade in Real and Yuan instead of US dollar MercoPress
2. China and Russia Dump Dollar in Mutual Trade - No Big Deal in the Short Run Marek Kuchta, SeekingAlpha
3. EUR/USD is 7% Backed by Gold What Backs the US Dollar? bearishtrader, Bearishtrader's Trading Blog