I wrote several articles in 2005 on how the US has old their economic souls to China- Click Here.

I said;

What most Americans don't know is our long term interest rates are currently controlled by China and Japan. China has bought a massive amount of US debt, and now holds the pulse of the US economy in the palm of its hand. If the Chinese should begin dumping their holdings of US government bonds onto the open market, our long term interest rates would spike. The spike up in interest rates would send our real estate market into a tailspin, and real estate speculators would experience the equivalence of a NASDAQ 2 crash. The facts you need to face is at one time the US was a creditor nation. Now we are a debtor nation. Someone else owns us, we (they) have sold our souls.

The issue I warned about in 2005 is beginning to happen. Today we received news that China is looking to diversify some of its foreign exchange reserves out of US dollars, and into European and Asian bonds.- Read Article

Now, the question that everyone is asking is how much will the Chinese diversify? The Dollar is down against most major currencies on the news, and the once shunned Euro continues to appreciate.