Exezy
I don't know if I'm amazed or amused by your posting.
Everything of substance I read says the US is trying to inflate its way out of its debt not just to China but to the entire rest of the world.
The sucre and other new reserve currencies are starting to see the light of day in a bid to ditch the dollar because the Mint's printing presses have been in overdrive since 1970.
Because the USD is the dominant reserve currency and banks need to hold them so clients can pay invoices, that lets the USA print an "IOU" currency that is redeemable against nothing except what the seller chooses to sell: the mention "Silver Certificate" disappeared long ago when it was decided not to let you redeem paper for real wealth, i.e. silver.
When a country makes its currency convertible, as required to join WTO, it agrees to trade its currency freely. Most notably, it undertakes to buy all the dollars anybody chooses to present to a teller window. So whenever Boeing pays the Chinese maker for 757 subassemblies in dollars, the Bank of China has to print as many yuan as the subassembly maker can claim for with the dollars it receives in payment. Those yuan flood the local economy and push up prices, i.e. China suffers inflation. Meanwhile, the Bank of China (BoC) has too many dollars and ends up investing them in T-bonds and T-bills, which are paying very little interest. There are too many because the opportunities for investment in the USA are limited and Chinese consumers will drink only so much Pepsi. So the BoC is sitting on a stack of IOUs that it bought at, say, 8.00 yuan to the dollar and along comes Hillary Clinton to grumble that the yuan is too cheap. To make her happy, BoC should pay only, say, 6.00 for every dollar it buys. But then what does that do when it cashes in its Treasury securities? Well, it had bought the dollars at 8.00 apiece and is now cashing them in at 6.00 apiece.
China is not the only country suffering this game. The Japanese yen was 360 to the dollar in the early 1960s; it is now 120 or so. The Fed pulled the same trick on them for decades. The 1987 crisis erupted when Japanese players failed to renew options on overnight money: the US dollar had suddenly lost its principal prop.
Your curve theory is beautiful and I like the name "Elliot" because it reminds me of someone allegedly bold and honest like Elliot Ness who trimmed a few branches on the mafia tree.
One reason Iraq was attacked was that it decided to sell oil in euro. As more countries find ways to shortcircuit the dollar in their bilateral transactions, the dollar risks going through the floor.
Crumbling empires are dangerous.
Meanwhile, the price of gold continues its upward push.
(But don't invest in gemstones unless they're huge unique pieces: their resale value is 10% to 15% of their retail value.)