At least so far in 2012. Things could get ugly quickly though. Just read what our friends at DollarCollapse.com are saying:
Last year the US ran a $272 billion trade deficit with China, which means we sent the Chinese that many extra dollars in return for the clothes, toys and iPhones they sent us. This lopsided relationship has been in place for a long time, allowing (or requiring) China to accumulate about $1.7 trillion dollars of various kinds of US paper.From China’s perspective, this is a good deal in the short run but potentially a bad one longer-term. And lately the world has been wondering what they would do with all this low-yielding, rapidly-depreciating currency. The worst case scenario had them reacting to US deficits and debt monetization by converting their dollars into real assets at pretty much any price, sending the value of the dollar through the floor and igniting a currency crisis or hyperinflation.
Optimists dismissed the above as unlikely, since traders would see the change in strategy coming and front-run China by dumping dollars immediately, decimating the value of China’s remaining reserves. So the only option for China — and Japan, Saudi Arabia and other big trade surplus countries — is to keep playing the game by accumulating dollars in order to protect the value of their current reserves.