I’ll re-post my response to a similar article.

This (China’s) program is evidence of a danger that I have written about for years. China is attempting to create a full circle “domestic expansion” economic model. Yes, just like that of the U.S. of old.

If in fact China can spur internal consumption to a high level (which they freely admit is their goal)they would require more natural resources than the world has to give.

China is currently taking advantage of sagging commodity prices by amassing enormous stocks of metals and other resources that are critical to industry. At the same time, they seem to be losing their appetite for U.S. treasuries.

We must always be vigilant of who loans who money when we consider reserve currencies. The U.S. is the largest debtor nation on the planet. Not so long ago we were the largest creditor nation.