Look at where the IMF (DC), United Nations (NYC), and Federal Reserve (DC) are located.
Whose currency is valued highest in the world? Bank of England pound
Whose standard is every currency in the world measured against? The pound and the dollar.
Why?
Because the US/UK financial contraption has been constructed over a period of several centuries to give governments iron-clad control over the people they govern.
China doesn't have its own financial system. It uses the dollar/pound framework. The same goes for Russia, Brazil, Japan, and so on.
If you have a central bank, you are using the US/UK system.
China isn't really loaning jacksquat. That is a common misconception. All they are doing is taking the dollars they get from products sold here, and exchanging it for Treasury debt (rather than buying buildings, land, factories, etc).
Now, why do governments go for this ridiculous system. Because it allows government to grow big and strong to take power from its citizens. That is the great appealing factor of the US/UK system to governments around the world.
China is as much a slave to it as the average American is. If the Chinese government abandons it, they abandon their power to govern the people. Unless of course they come up with a viable alternative, which I don't see happening any time soon (they tried Communism and you see how that worked for them).
Ummmmmmm yeah I agree with that. The monetary policy worldwide is favored towards the traditional US/UK system and currency. The only question is are countries trying to manuever their way away from the dollar as a reserve fiat currency. Some articles say wait and see. I thought it was always the man who holds the gold is the man who holds the leverage though.