[Errant]

The Japanese Central Bank, for example, buys dollars from Japanese corporations.

Cutting to the chase, every dollar of debt issued by treasury has to be purchased with dollars generated (at one time or another) by the Fed then?

[Toddsterpatriot]

every dollar of debt issued by treasury has to be purchased with dollars generated (at one time or another) by the Fed then?

Why? The Fed's balance sheet is about $4 trillion. Treasury debt is about $17 trillion.