No the US is screwed as well the debt to incvome ratio is beyond...

No the US is screwed as well the debt to incvome ratio is beyond anything that any government or central bank can fix. China is not an economic miracle it is just the biggest bubble of all time. The are building cities where no one lives and transport no one uses at a scale that dwarfs what the Aemricans have done. The buy all the materials to build everything that no one will use off us the Australians. Yes they are diversifying away from USD they are buying straight commodities and stock piling them.

That is the USD printing has become a ticking bomb for the Australian resource market. Instead of buying bonds they buy our stuff. The question is what happens when they decide they can hold out for a few years and walk away from the market?

The other factor is people understanding of why Chinese buy treasuries is ver very flawed. The Chinese have no choice the predominant part of the income comes in the form of USD. US companies (and many other nations) pay for the goods that China exports in USD. I dont know what the Chinese are expected to do with there USD but they cant just head down the money changers and get some other currency. What do they buy with the extra USD? A bit of gold sure then what? they cant excahnge it for their own currency because then they still have it anyway. They would not change more than a little bit of it for Euro or Yen. They can allocate some to buying and stock piling commodities but then what.

I think people think of the USD reserves as something the Chinese have a choice about. The trade balance is so one sided that have no choice they are swamped in USD and they have to keep most of it because there is to much to get rid of.....

Yet people seriously believe all kinds of myths eg that China will crash the USD (their currency is linked to it they will end up crashing their own currency and economy if they do)...that the Chinese will somehow be the reserve currency (they dont even float their own at the moment)

Like AS IF the world is going to a world currency that set by the bureaucratic of the Chinese communist party....people cheer on a collapse of the US and look to the future of China leadership?

Talk about out of the frying pan into the fire