...neat idea, but things aren't quite working out as well they might have done, back to the drawing board perhaps?
You don't understand what you quoted. Any recursive, closed loop system (PoS) is not a decentralized currency, it's a permissioned ledger. So to create an actual decentralized currency, you require an open entropy system (PoW mining - a permanent decentralized exchange peg), and those externalities that connect it to the real world will have the real world problems leak back into the Bitcoin system. China trade imbalance is a REAL WORLD problem, not a Bitcoin problem. The problem just leaks back into Bitcoin because the problem exists in our world. As I said, all nations adopting Bitcoin would actually eliminate the problem since no nation can operate currency wars then to form the trade imbalance in the first place.
It doesn't matter if Bitcoin exists or not, you would still have to deal with the China trade imbalance regardless, either through war, tariffs, or each nation adopting the same currency to prevent currency wars from creating the imbalance. Tariffs and war are likely a synonym for each other, so the end result is, you can likely either all die in WW3 or adopt the same settlement currency. The only viable candidates are Bitcoin and gold, but both could obviously be used at the same time to make up for the deficiencies of one another and everything would just be a BTC/Gold trading pair.