Here is news flash from the Telegraph: China might not buy western debt…Gee, there’s a fresh topic… We’ve explored that topic ad nauseum since September when TARP was hatched and it became clear that US government spending was going to have to surge to unprecedented levels to bailout the financial system and take up slack in the private sector.
The Chinese themselves admitted last week there was nowhere else to go and they’ve acted accordingly, adding to their horde of Treasuries every month last year.
