Stupid Foreigners Buying Our IOUs! Oops, Strike That

WSJ: ... Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis. This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.
...
The Fed is in effect subsidizing U.S. government spending and borrowing via expansion of its balance sheet and massive purchases of Treasury bonds. This keeps Treasury interest rates abnormally low, camouflaging the true size of the budget deficit. Similarly, the Fed is providing preferential credit to the U.S. government and covering a rapidly widening gap between Treasury's need to borrow and a more limited willingness among market participants to supply Treasury with credit.
...
The failure by officials to normalize conditions in the U.S. Treasury market and curtail ballooning deficits puts the U.S. economy and markets at risk for a sharp correction.

C'mon China, buy our debt! Please!

Source: http://online.wsj.com/article/SB10001424052702304450004577279754275393064.html?mod=googlenews_wsj
Source: http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
Source: http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/shlprelim.html
Source: http://www.zerohedge.com/news/china-dumps-100-billion-usts-december-revised-tic-data-uk-now-russias-shadow-buyer