Beijing is caught in 'trap' over dollar
They have so much friggin' money that they can only invest in things that have almost infinite supply. At the top of that list would be U.S. debt.
Seems to me only a matter of time before they go on a real estate binge. Africa has resources and can be picked up on the cheap. Why not snap up some Indonesian islands, too? And California has hundreds of miles of coastline that would make a nice vacation spot for party leaders. If you wanted to snap up California, though, you'd crash the dollar first to make it even cheaper. And who holds enough U.S. currency and debt to crash the dollar?