....fell by a record $53billion in December, with China reducing it's holdings by $34billion. I seem to remember someone here saying in another thread that demand for short term US debt would be on the rise due to troubles in the Eurozone. This was used to justify the large deficits runs by the feds. What happens if this trend continues?

I'm not specualting this downward trend will continue. Although, if it does, I think it's safe to say we will have some big problems on our hands.

Isn't it time we realize we cannot spend our way out of recession? Isn't it time we get our federal budget under control by reducing the size of the federal government, like now?

http://finance.yahoo.com/news/Foreign-de...set=&ccode=