"In only 15 years, from 1992 to 2007, the US balance of trade deficit has surged from $84 billion to $700 billion."

I assume the majority of that flows to China.

"So it's $1.4 trillion in US treasury bonds ... As the US currency loses value, the Chinese lose the value of their investment in America's future. So the question is, will they dump their US money to cut their losses?"

So the Chinese will dump their US bonds and wreck the US economy so the US people will no longer be able to buy their goods which will cancel that flow of money to China?