söndag 29 januari 2012

1/3rd of all market cap now on central bank’s balance sheets

Living in a QE World

All Central Bank Balance Sheets Are Exploding Higher, Or Engaged In QEThe degree to which central banks around the world are printing money is unprecedented.The first eight charts below show the balance sheets of the largest central banks in the world. They are the European Central Bank (ECB), the Federal Reserve (Fed), the Bank of Japan (BoJ), the Bank of England (BoE), the Bundesbank (Germany), the Banque de France, the People’s Bank of China (PBoC) and the Swiss National Bank (SNB). Noted on the charts are significant events or growth rates.Shown is the size of each respective balance sheet in its local currency. Note that all are exploding higher as every chart goes from the lower left to the upper right. Most are still making new all-time highs. If the basic definition of quantitative easing (QE) is a significant increase in a central bank’s balance sheet via increasing banking reserves, then all eight of these central banks are engaged in QE.
When shown in dollar terms below, the Bundesbank is the largest of the “second four” central banks. Further, its growth rate over the last five years has been among the highest. This is surprising since the Bundesbank is considered the “hard money” central bank.

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