China's also gone global in its hunt for oil – which, of course, is the only other global "currency" truly in international demand.

The reality is that China needs to have the U.S. boost the value of the dollar – even as the United States needs to have China do all it can to maintain the dollar's value.

China's record reserves are now at risk thanks to the U.S. government's bailout boondoggle, because each new greenback printed debases the value of every other dollar out there, including the ones China holds.

China is acutely aware that not having international currency convertibility hampers both its development and – thanks to the ongoing financial crisis – its potential survival. Not only has China been forced to accept huge reserves built upon previous trade growth (its $2 trillion in reserves is an all-time record), but its own policies have contributed to its relative inability to flex its capital-market muscles. That's especially true in transactions involving U.S. dollar/yuan exchange rates.

China is preparing to advance the yuan as an alternative to the US dollar, is the fact that this past April, China gave approval allowing companies in Shanghai and several other border cities to use the yuan to settle international trades. If things do like this, China will have the final say.