During the panel discussion, one panellist says: "The situation of persistent US-China current account deficits is untenable. If the US government does not do something about this, the dollar will tank. The deprecation and associated higher volatility will undermine the international currency status of the US dollar. Moreover, the US has become a huge debtor to the rest of the world, China in particular, thanks to these trillion-dollar trade deficits." Another panellist adds: "Apparently, China has made a terrible investment decision of holding a tremendous amount of US Treasury securities. The huge trade deficits and the Fed's QE have been building up the risk of inflation and dollar depreciation in the future. When the bad time such a global financial crisis or economic recession comes, the dollar tumbles and China will suffer colossal losses from investing in US Treasurys."

Please respond to the above two panellists' comments based on theories and empirical evidence established in the academic literature of finance and economics.

Please use the theory and reference to support explanation and answer