The Not-yet Towering Inferno! The Federal Reserve, European Central Bank Race To The Top (In Asset Purchases)

The leading global Central Banks (the US Federal Reserve, the European Central Bank and the Bank of Japan) are in a race .. to see which one can expand their balance sheets the most.  It looks like a tie, but the ECB has taken the lead!! Yes, one more time. The ECB now purchasd more asset than even The Federal Reserve and Bank of Japan.

Here is a different view of the same data, showing the not-yet Towering Inferno of sovereign debt.

And the ECB has the lowest policy rate (as The Fed slowly increases their Fed Funds Target rate).

Check out the excess reserves trapped in The Federal  Reserve system ($2.218 TRILLION).

The real problem is that despite the massive asset purchases and repression of interest rates, it doesn’t seem to have done any good.

But unlike the film “The Towering Inferno,” the fire hasn’t started … yet. Run when someone on CNBC or Fox Business yells “Fire on 81!”

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