The US government is becoming increasingly dependent on foreigners to finance its growing deficit. Currently, foreign investors hold over $3.3 trillion of US government bonds, representing about 30 percent of the outstanding stock.
As of March 31, 2009, the US government debt stock stood at $11.1 trillion. Over the last 12 months, it has increased by $1.7 trillion.
Of course, this can not continue for ever. At some point, foreign investors are going to wake up and realize that US fiscal policy is unsustainable. When that happens, there will be a run on US treasuries. When it happens, it will make the recent financial crisis look like a garden tea party.