China buys gold, challenges US dollar

Read article here.

The U.S. government borrows dollars that China has from selling goods to the U.S. They have over 3 trillion of them. That's how much the U.S. government is "planning" to pay back by taking it by force from the people that live in the land that they claim is theirs.

It's pretty obvious the people will not be able to fulfill this burden. The only other option is to default. There is another way to default than simply to say "sorry, we simply will not pay our debt to you.". The U.S. government can pay it back by printing new dollars.

While this will technically pay back the debt, it will be payed back in dollars that have been diluted. The dollars China gets this way will buy little, as will the dollars sitting in 401K's, IRA's and wallets here in the U.S.