Another important link to look at, this one direct from the treasury department. http://www.ustreas.gov/tic/mfh.txt

I think a lot of funds are scared about the Chinese pulling 34 billion out in December, and it is quite likely that the U.S. Governement was forced to buy this debt themselves and fudge the numbers. I think they're waiting with baited breath for the January numbers to come out, and pulling out of positions to minimize risk.

On a personal level, I am mad as hell about the Canadian Government funding the U.S. Government to the tune of 40 billion dollars over the past year. This is the same amount as our deficit. Why the heck can't we put this investment back in the Canadian economy? I'm sure it boils down to a backroom deal. There is no possible good outcome of this investment.

And back on topic, what did the Chinese do in January? What have they done so far this month? If they pull out another 34 billion dollars each month, there is no white knight. The U.S. will have to stop issuing debt. I think that this is the real reason that the Fed raised interest rates. There is no benefit to owning treasuries unless they are actually paying something, and if the U.S. is forced to print 34 billion dollars a month or more for the next year, we are definitely heading towards hyperinflation.

On top of that, the "recovery that is not a recovery" has been fueled by low interest rates and the government will have to slip back into bad numbers in order to stem the bleeding of foreign investors.

I'm a little scared on a personal level, even though I am mostly in pm's. I think we are due for a major correction. I haven't pulled out of my juniors with drilling plans and concrete deposits because I think this time around it will be a little different. I haven't seen a pulling out of financings in the pm sector, even though none of what I said is a secret. I hope I'm right, because I missed out on the investment opportunity of a lifetime last time.