http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml It sounds like China now has almost as much control over the dollar as the federal reserve. If they dump their dollars, everything you buy from China would become more expensive. Likewise, everything we still manufacture would become cheaper to them. I don't think they will do it because it would be bad news for their export-dependent economy, but still, the fact that they are talking about it openly (while we openly discuss possible sanctions) makes me nervous. In the 1920's we had a credit bubble, then the Smoot-Hawley trade sanctions, then the depression. Now we've got a credit bubble, and almost as if on cue, politicians talking about big trade sanctions.