Just about every major economy today has a huge debt problem. Some are in better shape than others. Surprisingly, U.S. is one of the stronger ones. When crisis hits, more money will flood into U.S. than go out. China has a serious capital flight problem. Much of it found its way to U.S., driving up real estate price in many places. The financial crisis first started in U.S. and its ripple effect hit all corners of the world. Those places are the ones which are likely to fall first before U.S. does.
“Chinese already dumped one third of their U.S. treasury holdings,...”
Dumped? Or allowed to mature in cash and spent?