Keys to the Treasury

China's increased purchase of US Treasury securities should not be interpreted as an endorsement of the assumption that the US can borrow its way out of the current financial crisis.

Any negligence over the severity of the issue will cause big trouble for both the debtor and the creditor, especially when the world economy is facing its worst slump in decades.

After replacing Japan as the top foreign holder of US Treasury debt in September, US data shows that China further expanded its lead by buying $65.9 billion worth of US securities in October.