The graph below depicts the top holders of US Treasury Bonds (the debt the US sells to fund itself and pay the interest on their existing debt). In the last year you can see the extent to which they (the Fed) have been buying US bonds compared to the traditional buyers, China and Japan. China recently announced they will be cutting back on purchases (and the increase seen below is indeed a fraction of their 2013 increase in reserves). It begs the question again of who will buy the bonds required to service the record US debt and deficits if the Fed keeps tapering the QE vehicle that is increasingly carrying this load. That interest bill includes the interest on the money they print to buy the bonds! China are buying gold instead, Japan is building one of the world’s worst Debt to GDP ratios and must surely be a liquidation risk….the Caribbean Hedge Funds? Or will the US find it actually CAN’T taper and what will that then do to gold prices??