Even if they didn't peg to the dollar....where else are they going to put all that cash? They already own as much of the other commodities as they can get their

Even if they didn't peg to the dollar....where else are they going to put all that cash? They already own as much of the other commodities as they can get their hands on. Ultimately, they want to protect the surpluses they have accumulated. What better way to do that than put it in the safest security in the world - well to date anyway. Sucks to be them though....they have no choice but to keep buying Treasuries. This is the point that many people miss. Yes...America is indebted to China...but it's really China that is more at the mercy of America. If they leave their cash in cash, inflation will kill them over the long term. They can't realistically own 100% of all the commodities...and if they did that would be self-defeating because the price would plummet over time because people would find something else to replace the scarce commodities so their holdings would become worthless. So their prudent management of their economy has given them a cash pile that no one else can rival, and has put them at the mercy of the largest debtor nation on the planet.