"Foreigners" buying debt of USA, UK, & other are CB, ECB, BIS generated mask.

External investments in America will continue, as the deflated dollar makes foreign currency
investments make sense. Buy while the dollar is dropping, either way they are winners, If the dollar takes a dive they win, they bought into the largest economy in the world, and bought reasonably cheap, If the economy recovers the investment increases, How do you lose? Remember 40% of the world doesn't even have indoor plumbing, or toilet paper. So why buy elsewhere? Besides the buying of America isn't by Joe Asia, or Joe Europe it is by Major Corporations, Foreign Banks, and Soviern Country Funds. We don't even own the famous Westinghouse corp., a major American powerhouse. France owns major Water Companies, Canada owns the rail lines that are the major north south backbone of our country. States are selling our Toll roads to foreign companies. In 5 or less years, we won't be able to pay our bills, bankruptcy time., Meanwhile we fiddle away our resources in Iraq, Afganastan, and give it to Wal-Mart that kills private enterprise, and sends Billions to China. Meanwhile we sit back and watch 2 idiots spend 100's of millions dollars trying to seduce the stupid public on how they will shaft them when they get elected. It's no wonder our money is falling, everyone in America is asleep at the wheel.

In some sense, yes i agree that the inflated currency is not well supported by the local issuers. They are not backed by gold but by confidence level on the local economy. As the US has entered the recession, its weakening currency has well reflected its deep trouble - so we can't really say it was a mask. The developing countries are not stupid in saving foriegn currency / bond only. They will "unhook" with savings when they don't trust the foreign assets anymore.