China is reining in their investments in the US economy*. This is exactly what Schiff predicted, although China swears nothing should be read into it...and they seem to think they are pot-committed** as the river card is set to turn. China is also drastically reducing their trade surpluses, which undermines one of Schiff's principal tenets (that they will benefit from our collapse because of the absurd trade imbalance in their favor). China is even looking to increase investment "overseas," which would seem to indicate the US. If such is the case, it gives them significant reason to continue propping up the dollar...and weakens their independent standing, should the American economy fail. Still, they seem to be voicing stronger concerns about their role in our economy, so who knows what may happen.
* This is an older article, I know, but it is much more recent than Schiff's book.
** Key quote: "...Beijing has little choice but to keep buying US debt."
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