… There is fear on foreign shores that even U.S. agency debt may not be honored and that U.S. Treasury debt itself, when “repoed” as in prior years, may now suffer from counterparty risk. … 
That was one startling nugget buried deep inside Bill Gross’ monthly commentary. I’m going to go out on a limb (why should today be different?) and assert, as a fellow mustache fancier, that notwithstanding his silly comments about his mother, Gross’ shaving of his lip was done specifically to bring up "haircuts" in a soft non-threatening way. PIMCO is exposed to risk whether Agency Debt is granted an explicit guarantee by the government or not. I think the above letters-of-fire is a suggestion that it’s time for the ambiguity to be resolved, and it’s just possible that his reference to American military might further up in the same paragraph is a "dog whistle" signal that this would be a good time to start cutting DoD spending.
Other players and observers have become seriously concerned  about the level of PIMCO’s clout. Researcher Josh Rosner seems particularly alarmed.
"Gross is a deeply conflicted player given undue sway in matters of public interest that are potentially at odds with his positions."
That sounds a bit like what an opponent could have been saying about Nicolas Foucet or the Templars before they came to a bad end, and I’m sure that Gross is well aware of the danger of becoming too mighty. PIMCO has a lot of input into decisions at the Fed, Treasury and FHFA, and those three will be settling the agencies guarantee issue shortly with lots of potential impact back at Bill, Mohamed and the gang. Gross’ March letter was a high-stakes, nuanced move in one heck of a poker game. Doom looks forward to what new surprises arise from the April version.
—————–: "Hairy Lips Sink Ships", by Bill Gross, PIMCO Monthly Newsletter, March 2009. : "Pimco’s power play Bill Gross is deftly navigating the most treacherous market in modern times. But is the bond king too big? Does he have Washington – and us – over a barrel?", by Katie Benner, Fortune / CNN Money, February 20, 2009.