[imtringued]

You're misinterpreting the situation completely. China is running a trade surplus vs USA which means China has lots of dollars. Because of foreign exchange policy it will not use the dollars on imports. The only thing the money can be spent on is financial assets. All the Fed does is lower interest rates in response to this "savings glut" and that is the right thing because oversupply should result in lower prices for anything including money.

Because of the reserve currency status almost every country on earth is running a surplus vs the US and buying their financial assets.

[asdff]

With every government in the world buying US finantial assets that should lend even more support to the idea of loading up on assets yourself and riding the wave indefinitely, if the whole entire world is so overleveraged in American markets they will also do nothing to rock this boat since everyone around the world has been eating well betting on the market.