American Affairs Journal has the L. Randall Wray article Does America Need Global Savings to Finance Its Fiscal and Trade Deficits?
Interesting article by L. Randall Wray. Lot’s of insights. Here is one.
To summarize, bond sales by either the central bank or the Treasury serve the functional purposes of removing reserves from the banks and offering a higher-interest-earning alternative to the central bank’s support rate. If, however, the central bank wants to push interest earnings down toward the support rate, it can engage in open market purchases—taking the bonds out of the system (à la “quantitative easing”).
In his usual style, the beginnings of his article start with a long description and justification for the conventional wisdom, and the latter half tells you why that is all wrong. You have to get a feel for where the switch happens.