hi seals...I'm aware that China holds alot of greenbacks at the...

hi seals...
I'm aware that China holds alot of greenbacks at the moment. They bought up big time to support the USD to ensure that their exports were cheap for US consumers to purchase. It was a good decision made last year by the Chinese to overt a weakening in the USD as it has served their own purposes well. Another issue is now that the USD has begun weakening against other currencies, China will have to use those greenbacks to purchase something that will protect the purchasing power of all that paper. Gold or other commodities seems a logical option. Selling all those greenbacks will obviously further weaken the USD and hurt China's export market. My point? It works both ways. Both the US and China want to remain on good terms. For the US, China keeps their inflation down by flooding the market with cheap goods, as well as funding America's insatiable appetite for debt. For China, a healthy US economy means greater numbers of Chinese exports. The two have to get along. Besides, if China doesn't revalue it's currency upwards then they will eventually suffer tjhe weakening of all those greenbacks they own, due to the large current account deficit between China and the US. So ... China and the US need to negotiate these problems.