Abstract: This paper first establishes a dynamic model to describe the sovereign reserve currency country’s net international investment position to GDP ratio and its dynamic evolution. Second, a discussion of the international reserve currency country’s interest rate, exchange rate policy on the national rate of net debt (NIIP/GDP) impact is made. Third, it examines impacts of the recent low interest rate and weak dollar policy on the U.S. balance sheet. China, accordingly, should give up the way to reserve foreign currencies on a large scale, but reserve important means of production and other strategical resources.