$150 billion of net new issue a month - a run rate of $1.8 trillion annualized thus far - while foreigners are net sellers of Treasury instruments.

This leaves Ben and Timmy with an interesting proposition: to reverse this pattern they must improve the dollar balance and float rates higher, so that foreigners do not immediately suffer capital losses due to currency depreciation that wipes out their coupon earnings (and in many cases worse.)

Yet to strengthen the dollar the basics of supply and demand assert: you must limit the supply of dollars, or increase demand for dollars.

The former requires pulling liquidity.

The latter requires a cycle of debt repatriation or default.

http://market-ticker.denninger.net/archives/1730-TIC-Data-Confirms-Foreign-Appetite-Gone.html

They can have my pms when they pry them from my cold dead fingers!