China dumps all bonds.
US declares return to gold standards.
Chinese economy crashes.
World experiences significant economic downturn but soon recovers.
US declares return to gold standards.
Chinese economy crashes.
World experiences significant economic downturn but soon recovers.
If/when USD looses its position as a reserve currency, the price of gold will skyrocket and China will be looking smug.
China dumping US money, would be an actively hostile thing to do... implying they wanted to do other hostile things as well... The world would likely become a very different place, real fast.
It'd basically be suicide for the seller - in this case the central bank of China.