Now, there are no potential buyers, but more new Treasury supply coming onto the market than at any time in U.S. history and much more short-term debt to roll over than at any time in U.S. history.

Thanks to the damage Wall Street bankers have inflicted upon European debt markets, between fiscal "austerity" and "bond bailouts" for Wall Street's victims, there are zero European dollars available with which to buy Treasuries.

This means that there is no way for the Federal Reserve to proclaim an end to QE2 without the dollar collapsing and the U.S. economy along with it.

Instead, just as it did when it abandoned its farcical "exit strategy" in 2010, the central bank will again invent some pretext to explain why it had to do (another) 180-degree turn -- and try to make it sound plausible.