[upchuck]

China has us by the balls. We best be nice. China could cause worldwide chaos if they start dumping out bonds.

Please see my tag. Now that the “debt crisis is over” (yeah, right) I’m back to reserve currency.

[RayChuang88]

However, China is walking a really fine line here because the LAST thing they want is chaos of their trading partners, USA and the European Union by dumping US Treasury bonds. China has a hugely-powerful export economy and if the USA and Europe falls, there goes most of China's export revenue, and that could bring down China's "Big Four" banks.

I do think over the next few years, an agreement will be made to start returning world currencies to a asset-based standard using gold, silver, platinum, palladium and even possibly copper and nickel, the most commonly-used metals for coins and bullion bars used in monetary trade in the past.