The Federal Reserve balance sheet has increased by an incredible 40% within a very short period of time as pictured above.
Some $1.5 trillion has been added to what previously was $4 trillion with Fed’s balance sheet increasing by more than 5 fold in the past decade in the biggest money printing in history.
The four major central banks hold an incredible $20 trillion in assets and that was before the current crisis with it expected to see a huge jump in new money printed.
“B-52 money,” is what Yardeni Research called this incredible expansion of central banks’ balance sheets with Edward Yardeni stating:
“QE4ever, to infinity and beyond! Unlike the Great Financial Crisis, the fiscal and monetary responses to the Great Virus Crisis have been immediate and unprecedented. The scale of the stimulus is so huge that I call it B-52 money.”
This mass devaluation of fiat money may lead to huge asset bubbles and risks run away inflation due to flooding the market in a very short time.
Hard assets like bitcoin or gold may therefore be more in demand as a hedge and to better retain value.
When China intentionally devalued CNY, for example, bitcoin soared. Then too the devaluation happened during the halvening in 2016, a halvening that is now due in less than four weeks.
Europe and America in combination are about 4 times China’s economy. A devaluation of the euro and the dollar therefore may send hard assets soaring like never before.
Not least because this B-52 money has just began, so its expected there will be a lot more on the way as money printers basically break down.