[riverdawg]

Well, I suppose that no scheme from this administration is to be considered too absurd. The problem for China is that trade is a two-way street. Yes, China has bought a large amount of U.S. debt, lending us money to fuel our demand for Chinese goods. But, in order to sustain our purchases of their goods (and their output and employment at current levels), the Chinese have to do something with the dollars they receive. China can buy more of our bonds or it can buy more U.S. produced goods (narrowing the trade deficit) or buy more U.S. assets like equities and real estate or, realistically, some combination of these three things. Those are the alternatives for China; it's just balance-of-payments arithmetic.

[Myrddin]

China is buying gold with the soon to be worthless dollars. BRICS goes live on July 8. China has a large pile of gold and a desire to make the yuan a gold-backed dominant currency. The days of running the printing press with reserve currency status are drawing to an end.