China becomes a formidable opponent for US in all points of view military and especially economic.Advantaging to weaknesses of us economy wiht huge debt problem.
This situation become a clash between titans from one part US injuried and another part China.In 2003 China bought us bonds at high historical level.But meanwhile US economy went in recession.Not predicted this situation China is confrunted with a big problem that USA is or not able to pays his debts.
As for me this current situation become a fight for who will lead the world in the next decades.Many important economists are skeptical that USA are able to pay his debts.In an interview in 2011 to Bloomberg magazine the american bilionaire Warren Buffet said " Us debts are in dollar ,USA have to print currency and pay it"
Started to what Buffet said all of us knows that the us dollar represents world's reserve currency.Us is the only country which has the right to print currency.
Chinese officials are skeptic in posibility that USA to pay his debt.And started a plot to dump us dollar as the world reserve currency.They started buying huge amonts of gold.
According to State Administration of Foreign Exchange in the last year China invest masive in gold getting to hold 33 890 000 ounces.Meanwhile us economy seems to recover.I think will be difficult to China to dump us dollar and I can't see what currency can replace it.
Image source: Reuters
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