America's Main Export Today, Debt, Is No Longer Tasty Diet For The Chinese

Mostly because of the economic woes worldwide and here, along with tight lending and more saving across the world we are slowing purchases of their third world third rate poisoned dog foods, hazardous toys, cheap electronics and other lost American products and industry. Maybe this is what it will take to wake up and realize it's time to bring many of these manufacturing jobs back home finally instead of paying the Chinese both coming and going as we presently do.

U.S. debt is losing its appeal in China

- International Herald Tribune: "HONG KONG: China has bought more than $1 trillion in American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home - a shift that could pose some challenges to the U.S. government in the near future but eventually may even produce salutary effects on the world economy.

At first glance, the declining Chinese appetite for U.S. debt - apparent in a series of hints from Chinese policy makers over the past two weeks, with official statistics due for release in the next few days - comes at an inopportune time. On Tuesday, the U.S. president-elect, Barack Obama, said Americans should get used to the prospect of 'trillion-dollar deficits for years to come' as he seeks to finance an $800 billion economic stimulus package

Normally, China would be the most avid taker of the debt required to pay for those deficits, mainly short-term Treasury securities. In the past five years, China has spent as much as one-seventh of its entire economic output on the purchase of foreign debt - largely U.S. Treasury bonds and American mortgage-backed securities.

But now, Beijing is seeking to pay for its own $600 billion economic stimulus - just as tax revenue falls sharply as the Chinese economy slows. Regulators have ordered banks to lend more money to small and mid sized enterprises" continued