How are you these days? As for your question, I think I had better paste OED's article about the etymology of Dutch than do any explanation. , n.
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KhoffHiro - maybe this is what your dictionary is referring to:
There is a group in people in the U.S. called the Pennsylvania Dutch -- they are Amish and Mennonites originally from Germany who settled in Pennsylvania. They refer to themselves and the language they speak as "Deutsch" (German), but the local people heard this as "Dutch," so the popular term for t