Source Hendren Global Group Stock Fraud Watch China ending its purchase of Treasury bills will lead to "probably the final nail in the coffin" for the dollar, said author James Gorrie.
He also warns that rather than an emerging superpower, China looks more like it is on the verge of collapse.
"China is the biggest holder of our foreign debt," Gorrie told Newsmax TV in an exclusive interview.
"When China stops buying Treasury bills, that'll radically impact the bond market," said Gorrie, author of "The China Crisis: How China's Economic Collapse Will Lead to a Global Depression."
"When the U.S. bond market is no more in demand by its largest purchaser — largest foreign purchaser ... then there'll be some real problems. That's why China's involvement in the international economy will bring devastation to that realm as well and not just China." China is "facing a financial collapse that will dwarf what happened in 2008," he said.
"Those aren't my words, but those are the words of the head of China's accounting association just last April. China's economy isn't what it appears to be. It's tremendously wasteful, tremendously corrupt," he said.
"They have a real estate bubble and a financial bubble that just is unsupportable. It's unsustainable."
He also questioned whether China can do anything to stop the spiral into crisis. He made a comparison with the Soviet Union in the 1980s.
"[Mikhail] Gorbachev came to power and tried to do a couple things: glasnost and perestroika – reform and restructure, or restructure and openness," he said.
"Because that economy was based on much the same type of processes in terms of corruption and graft and so forth as the Chinese ... especially the internal economy. That's how the Communist Party runs the country," he said.
"There's been some dire warnings from the outgoing premier who said we have to change this culture of corruption or we're not going to last. The new premier had said the same thing and is trying to do an 'openness and restructuring' type of campaign. It's doubtful whether the economy can actually handle that because so much is based upon that corruption, that model."
Gorrie didn't attach much significance to the issue of currency manipulation.
"It's not as crucial or a unique event to China as much as other things that they're doing like polluting their crops, polluting their land and their rivers and using up their arable land and doing all kinds of horrible things in terms of pollution and smog and fraud in terms of Chinese companies [regarding] stock market and bank fraud and so forth," he said.
"[Currency manipulation is] probably a second-tier issue from my perspective in terms of what China is actually doing to themselves."
"I don't like the idea of China purchasing real assets, although they have to do it," he said.
"They have to do it because their own food and water and farmland [are] toxifying. If China was so good at doing what they're doing, growing their economy and creating it and developing, then most of their money should be going back into China, but now they're buying farmland and they're buying forests because they're using it up at an enormously horrible rate," he said.
"China takes 10 times the inputs to create something as it does in the U.S. — so grossly inefficient. The Chinese themselves are very, very concerned about the food toxicity. Farmers don't even eat their own produce."
Gorrie said China is a manufacturing economy and not a knowledge-based economy, and that such systems must evolve in order to keep growing, "otherwise they're just people putting widgets together."
"They're trying to hobble the U.S. any way they can, which includes cyber-attacks on Wall Street, on our defense apparatus and infrastructure [to] get as much knowledge as they can, technological knowledge," he said.
"We've lost millions of jobs to China since China joined the World Trade Organization in 2001, probably around 3 million jobs and those were manufacturing jobs. The fallout is more tension and as China becomes weaker, their acts become bolder."