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Originally Posted by SaintessHeart
China shores up US with its finances and buys their debt because it aids in their export-dependent economy : USD is still pretty much the official currency, and having it to fail will destroy buying and selling because there is no actual currency, like in the African nations where diamonds are looked upon as the natural currency rather than paper money. With so much USD, China is pretty much in control of the US economy and in short, it is controlling the world largest economy indirectly.
It won't be long before the USD is revalued in according to China's terms, and probably, a standard electronic credit unit will be used in the near future, courtesy of China.
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Compared to the odds of the U.S. defaulting on its debt, I would say that the odds of the U.S. dollar being devalued in the short- to medium-term period is higher. There are some benefits to a country with a weak currency. Whether the U.S. will accept or even like that, no idea.
In terms of China rising and the U.S. falling, I see that more as a trend of a country's growth more than any claims of nationalism. Outside of an "Eternal Emperor" scenario, no country can stay in power forever, and will eventually step back to let someone else take the limelight for awhile. China's turn to decline will come; its population growth, birth and aging patterns at the moment pretty much guarantee that, IMHO.
As for China taking over the U.S., back in the 80's, Japan tried the same, and it didn't do too well in the end having, among other reasons, extended too far too fast. It's more likely that China would work more in its own backyard (spending money in Russia and, more likely, Australia - if its citizens let them), and where possible, use the U.S. as an ally to pacify its critics and a customer for its goods.