A year or so back, I tried to pursue this understanding again and got some clarity with Ramana's and Nisargadatta's readings. The above example got a little further exploration. I not only have these endless loop of thoughts but *while* thinking so, I feel I *know* this! I'm not saying that its witnessing, it may not be so... it may well be a thought... but it is like witnessing.
SV had a similar example to give. He said that while chanting: you are saying the name, listening to it and watching this happen too! So, the most beautiful explanation for tadA draShTuh svarUpe avasthAnam (YS1.3) he thought to be is draShTA dRRiShi mAtrah (YS2.20) and thats why a seer is called so!
Its the same in advaitic terms wherein "The knower of knowledge can't be known!"
Om tat sat