Chris Martenson comes here with one of the most simple and elegant explanations: why The Exit from QE is all but impossible without total rupturing of the market. Everybody is happy when FED buys - it means that they are coming in almost every time at the higher prices. But to whom are they going to sell, when this process means more supply and Lower prices for sure? Or who is going to buy when FED will start To Taper and reduce its buying?
"US Dollar is running wild today trying to understand the FED's talk. "We will taper at some point data permitting, but will keep ZIRP until 2016 now" - with this kind of double talk from the both sides of the mouth anyone can get confused very soon. What is the best cure from the Taper Impulsive Disorder? - Higher Interest Rates.ZeroHedge reports that they are moving up fast with the first sign of Taper confusion in the headlines and below you can find the reason why it is impossible to Taper anything now.
Amount of US debt is so huge at 17.1 Trillion, that interest expense is one of the largest on record even with record low interest rates and stands at 415.7 Billion in 2103. Now double it and apply to US Economy general statistics, then do the same after listening to John Williams from shadowstatistics.com about the real numbers. We guess that Chinese have run these numbers long time ago and buying all physical Gold now they can get."