The balance sheet of the European Central Bank (ECB) has hit €7 trillion for the first time ever.
That’s a significant increase from €6.3 trillion this July with more than 10% added in just months.
Plans are to continue this acceleration in new money for much of this year and potentially into the next one as the European economy is expected to remain constrained probably at least until summer.
The huge government deficits therefore will probably continue being finance by the European Central Bank which despite all this printing, is seeing a strengthening euro.
The reason may well be that Europe has not engaged in straight out money giving to their citizens as America has.
In USA, new checks are expected to reach American pockets perhaps in weeks with the nominated Treasury Secretary, Janet Yellen, stating it is time to “act big.”
In Europe on the other hand support has been lackluster with the self-employed in particular often overlooked.
There has been no effort for a second stimulus, but after Biden’s nomination European leaders may well respond with their own two trillion package.
Meaning ECB’s balance sheet is expected to continue increasing, with the M1 euro supply crossing €10 trillion.