What downgrade?

China has deepened its investment in US debt, despite the hue and cry after US debt was downgraded as a credit risk recently by the ratings agency Standard and Poor's.

According to Bloomberg, China grew its US debt holdings for the third straight month, as other international investors began selling of US Treasury bills. While China has begun sternly telling the United States to get its financial house in order, it has not balked from buying America's debt and has remained the world's largest single holder of US debt. Many analysts have said that while China is critical of US financial policies and using the debt as a political football, it has no feasible replacement for US bonds as a single investment.