China is beginning to make it's presence known as a military power. There have been recent incidents with Chinese military ships harrassing US Navy ships in the South China Sea.
China considers Taiwan to be a part of the country, while the US supports it as an indepentant governemnt. There has been a stalemate over it, but I get the feeling that China will, in the next 5-10 years, attempt to restore Taiwan to Chinese rule, forcing the US to either take military action iin defense or sit quietly by and allow it to happen.
China also holds a substantial amount of the US foreign debt, funding most of the deficit incurred by the Bush administration
All this leads me to believe that when China starts to see signs of a global economic recover, they will drop the US T-bills as bad debt and refuse to finance any more of the debt, causing a massive collapse in the world wide economy larger than even the great depression. The end result will be that China will be the most stable economy, thereby making the Yuan the defacto currency of trade
China considers Taiwan to be a part of the country, while the US supports it as an indepentant governemnt. There has been a stalemate over it, but I get the feeling that China will, in the next 5-10 years, attempt to restore Taiwan to Chinese rule, forcing the US to either take military action iin defense or sit quietly by and allow it to happen.
China also holds a substantial amount of the US foreign debt, funding most of the deficit incurred by the Bush administration
All this leads me to believe that when China starts to see signs of a global economic recover, they will drop the US T-bills as bad debt and refuse to finance any more of the debt, causing a massive collapse in the world wide economy larger than even the great depression. The end result will be that China will be the most stable economy, thereby making the Yuan the defacto currency of trade