Fed's Balance Sheet Vs. The ECB's Balance Sheet, Who's Winning The Race?

The Fed and ECB have been adding to their balance sheet at an amazing pace. Who's in the lead? And what about Japan and China?

ECB Balance Sheet 2021-11-24A

ECB Balance Sheet Discussion

  • As of November 19, the ECB's balance sheet reached €8.44 trillion. 
  • Converted to US dollars that's $9.52 trillion.
  • Pre-Covid, the ECB's balance sheet was €4.70 Trillion.

This amusing caricature inspired this post.

Fed's Balance Sheet 

Fed's Balance Sheet 2021-11-24A

Fed Balance Sheet Discussion

  • As of November 24, the Fed's Balance Sheet totaled $8.68 trillion. 
  • Starting April 2021 the Fed was simultaneously doing QE (Balance Sheet Expansion) and Reverse Repos (Balance Sheet Contraction)
  • The current weekly average in Reverse Repos is $1.55 trillion effectively making the true balance sheet total $7.13 trillion. 

ECB Vs. Fed Balance Sheet Comparison 

  • ECB: €8.44 trillion, $9.52 trillion
  • Fed: $7.13 trillion
  • ECB Expansion Since Start of Pandemic: €3.74 trillion, $4.22 trillion
  • Fed Expansion Since Start of Pandemic: $2.97 trillion

What About Japan And China?

Major Central Bank Balance Sheets (In US Dollars) 2021-11-24

The above numbers from Yardeni are a bit stale and do not account for reverse repos. 

Nonetheless, the chart displays an important idea. 

Grand Total, FED, ECB, BOJ, PBOC

Major Central Bank Balance Sheets (US Dollars Total) 2021-11-24

Combined QE Total

Given the numbers are a bit stale, it's safe to say the combined QE total is now well over $31 trillion.

Congrats Central Bankers!

And also factor in trillions of dollars of stimulus in the US, unknown amounts elsewhere, and a huge supply chain mess everywhere. 

Inflation

Add it all up and you get inflation. 

So why was the price of Thanksgiving up? 

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