China's economic hold on America?

http://www.informationclearinghouse.info/article18154.htm

This is something written by a former Assistant Secretary of the U.S. Treasury Department about how China's huge reserves of dollars give it potential power over US policy making.

A sentence in the final paragraph is quite interesting. "It is paradoxical that Washington is putting pressure on China to raise US consumer prices [by wanting China to revalue the yuan], while blaming China for harming Americans [jobs offshored to China]." Of course it's paradoxical and makes no sense, but it doesn't stop people in the media from continuing to write such rubbish. The yuan, being valued as it is, does make for a huge trade deficit for America and the UK, but if it was revalued down, the deficit would fall, but all the products made in China and consumed in USA/UK would become more expensive. You can't have it both ways! And while moving manufacturing jobs to China does harm ordinary people, it works great for the business elite.

My opinion, for what it's worth, is that China is unlikely to do anything to upset world markets, i.e., upset America. There are a lot of people making huge amounts of money on both sides of the Pacific at the moment, and I don't see any reason why they themselves would want to jeopardise that.