It is not a 'round robin'. Every time the US government creates new bonds that then becomes more money added to the supply.
Frankly timber you are talking rubbish when you try to say that effectively no new money is introduced into the US domestic economy. What does the US government do with the cash it raises? .... it spends it mate. ... it does not go into some account somewhere. Now if some of that money goes to interest payments to non residents those same non residents can use that to buy more bonds [if they are so inclined] and just there you have an increase in the circulation of money in the US. [or maybe they are buying the DOW etc]
How about all of the pension funds relying on interest payments from bonds? That money also is entering the economy.
As far as your earlier call about gold going down ... that dip coincided with a rise in the $US. But interestingly gold recovered and the dollar is still high ..... ummm.
