Originally Posted by rayxi

As you pointed out, investing in US dept is fairly safe and provides a good return. But at some point they'll need to diversify their investment more than current levels. China is already pumping big money into Africa and South America to feed their resource needs and because they can exert more influence there than in the US.

Japan and China they will own over 1.6 Trillion in US debt. That's a lot of slack for other countries to take up should they diversify their investments into other countries instead of the US.