Well, not exactly, but Taiwan has apparently moved to limit investments in the two mortgage agencies now in conservatorship (via Barrons):

Taiwan’s financial regulators reportedly have ordered that nation’s insurance companies to pare their holdings of the debt and mortgage-backed securities of Fannie Mae (ticker: FNM), Freddie Mac (FRE) and Ginnie Mae securities, according to a report on the Internet site of Asian Investor magazine.

I haven’t seen anything about the government of Taiwan dumping agencies but if they don’t want their insurance companies investing in them, it doesn’t make sense for the government to invest. Not many have mentioned this since maybe its like yelling fire in a crowded theater but if foreign governments start abandoning US debt, we’ve got a major problem.

Our budget deficit over the next year considering all the bailouts will probably approach 8-10% of GDP and we need foreigners to help finance that debt. But foreign countries have their own problems and may see the need to bring capital home in order to save their own economies. If that happens, interest rates will have to go up and financing our debt will become a much more expensive exercise. Maybe that is what we need to finally force us to get our fiscal house in order, but it would sure be painful.