Thursday, November 10, 2011
The ECB is now bigger than the Fed!
In terms of assets, the ECB is now bigger than the Fed.
We often hear people attack the Fed for "printing money." They're saying the Fed is "debasing" the currency. (Whatever that means because the currency has no "base.") Yet when it comes to the ECB these comments are nowhwere to be found.
That's odd, because these days the ECB takes the prize when it comes to "money printing." (Real term is accumulating assets and/or "total factors affecting reserve balances.")
The chart belows shows the balance sheet (total assets) of the Fed and the ECB in dollars. The ECB's balance sheet is now far above the Fed's, by about $400 bln and nearly $200 bln of that came in just the last six weeks. Where are the folks talking about the debasing of the euro?
There is clearly an anti-Fed, anti-dollar bias in the world.