America is overspending to the point that China “has canceled America’s credit card,” said U.S. Congressman Mark Kirk last Thursday.

The federal deficit is already at $956.8 billion, or nearly one seventh of U.S. gross domestic product, only six months into the fiscal year. This is the highest level since World War ii.

China funds a large part of America’s debt. It owns $1.7 trillion in dollar-denominated assets according to the Council on Foreign Relations. Kirk, a member of the House Appropriations Committee and co-chairman of a group of lawmakers promoting relations with China, said that China has “very legitimate” concerns about the safety of these investments.

Treasury data shows that Chinese investors dramatically reduced their purchases of treasury bonds during January and February.

“It would appear, quietly and with deference and politeness, that China has canceled America’s credit card,” Kirk said.

“There will come a time where the lack of Chinese participation may have a significant impact,” he added. “We should track that, because up until last month they were the number-one provider of currency to the United States and now they’re gone.”

Meanwhile, American debt is reaching record levels. The New York Times warns, “[I]nvestors are starting to wonder whether the United States is headed for a new era of rising market interest rates as the government borrows, borrows and borrows some more.”

The Treasury is toying with idea of creating different types of bonds to try to keep the money flowing in.

Kirk said he was the first member of Congress to tour the Bureau of Public Debt, which trades bonds. He said that he was worried by the amount of debt that the U.S. Federal Reserve was buying due to a lack of foreign investors.

America’s days of unlimited borrowing are almost over. For more information, see our article “How This Recession Could Change the World.”