You see you have a little problem with your crazy ass spending or stimulus or corp welfare or bailout plans or whatever you want to call it these days.
There might not be anyone interested in buying up the giant debt increases you will be packing on when you more than double Bush's already massive deficits from $455 billion to 1.2 trillion.
http://www.mcclatchydc.com/251/story/59217.html
"U.S. debt is losing its appeal in China
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 midsize enterprises, many of which are struggling with slower exports, and Chinese bankers say they are being instructed to lend more to local governments to allow them to build new roads and other projects as part of the stimulus program.
"All the key drivers of China's Treasury purchases are disappearing," said Ben Simpfendorfer, an economist in the Hong Kong office of the Royal Bank of Scotland. "
There's a waning appetite for dollars and a waning appetite for Treasuries. And that complicates the outlook for interest rates."
http://www.iht.com/articles/2009/01/07/business/yuan.php
I have to give some props to the Dems, when they said they were for change, well going from under half trillion deficits to over full trillion deficits sure is change...and who on earth could have predicted they would be less fiscally responsible than the Repubs? Who could that be?
I know, I know, Repubs were bad so Dems had to be better or both parties are the same, etc...
