In my humble opinion, all this talk about how China cannot decouple from the USA due to the amount of USD it holds is true....to a point. Sure, they have been buying up USD, treasuries, bonds etc. to the extreme in order to keep the Yuan down 4 export reasons. I do beleive they regret holding so much USD. But they can put the USD to great use by doing what I think they're doing; Using USD to buy up assets internationally, like rio, pem etc.
Re; Gold, sure it is a limited commodity. "Experts" everywhere are saying that China can't get it's hands on much of it 4 a many a reason. But reality is, that China is now the #1 producer of Gold in the whole world, & the Chinese gov't won't let anyone else mine their gold. It stays in China!!! Seems to me, China is so relatively powerful now, that they can have 2 bob each way on USD & Gold until they decide they won't finance USA's fatcat consumption spending anymore.
http://www.youtube.com/watch?v=zg37e2GRqIk
Anyone that thinks I'm way off, please correct me.
