No movement on the budget deficit and I certainly wouldn't rule it out. This is the scenario smart people have been warning of for years. Of course in more subtle ways than this (below) it may already be happening.
China extends help to tackle euro crisisBy Jamil Anderlini in Beijing and Peter Spiegel in Brussels
Published: December 21 2010 13:00 | Last updated: December 21 2010 18:44
Beijing has emerged as one of the more enthusiastic backers of distressed European sovereign debt in recent months.....
Mr Wang’s comments boosted the euro’s value against the US dollar, but China’s public support for Greece and Portugal over recent months has not prevented their bond yields remaining near record highs.
European officials said that although China had not explicitly linked its bond purchases to any specific issues, Beijing asked in the talks for the EU to grant it “market economy” status and lift a long-standing arms embargo.