A new Reserve currency to challenge the dollar -- What's really going on in The Straits of Hormuz.

``I think the stand-off with Iran in the Straits of Hormuz over sanctions is as much to do with the moves to replace the dollar as anything else.  The stand off is as much with China and its allies as it is specifically with Iran. The US is testing China's nerve and the solidity of its network of bilateral currency settlement agreements.  We are seeing military power deployed to counter economic power. I think the US will lose.  Depending on the nature of its loss we could see a precipitate decline in the standing of the dollar as global reserve currency.''