Chinese dollars.

melv, the "yanks" will devalue all $US denominated paper, be it currency or debt held by everyone not just China. They have no other choice. With estimates ranging form $120 to $200 trillion (if you include unfunded liabilities - social security, medicaid and medicare) mountain of debt, the US is in no way able to pay it's obligations back. Not without running the FED's printers running at full speed and devaluing the debt.

Want to see why Bernanke will be powerless to fight inflation (all the inflation we've seen so far is leakage) when all the liquidity he threw out there makes it through the system? Take the US debt that's maturing over the next three years, increase the cost of US borrowing by 1pc, and what do you get? Italy on steroids, that's what you get.

It's ZERO interest rate policy for EVER.

(That last point also explains why gold will continue to do well despite the banking cartel's - through their bullion bank proxies - attacks.)

Thats what I am on about. If I had loads of dollars I'd spend em before they lose value. I'd actually buy land, water and other natural recources. Why won't the Chinese. They have warned the west about being careless.

Or are the Chinese to forced to refrain from doing this and be seen as the worlds public sector. You know the rule; we'er all skint so you have to be as poverty striken as the rest of us. Ignoring the fact the china is a very poor country already with more of its population working for subsistence wages in appaling conditons of near slavery.

The country with the most military might and a tendency to use it whenever it gets upset can do what it likes with its dollars but don't you try and spend yours or else

Is this the future for us all in this race for the lowest level of labour costs.

Or are the nonwestern economies preparing to go it alone. See decline and fall of the modern western world.