Treasuries lack safety, liquidity for China

When your largest creditor wants to turn off the spigot, and your citizens back home are losing their jobs, their homes, and net worth, it's "uh-oh" time.

http://www.businessweek.com/news/2010-08-03/treasuries-lack-safety-liquidity-for-china-yu-says.html

The Chinese are diversifying away from USDollar-denominated assets, and looking at Special Drawing Rights as an alternative reserve currency. They're also accumulating gold.