should explain it all rather effectively. As the bottom chart shows, currently the central banks of the top three developed world entities: the Eurozone, the US and Japan have balance sheets that amount to roughly $8 trillion. This is more than double the combined total notional in 2007. More importantly, these banks assets (and by implication liabilities, as virtually none of them have any notable capital or equity) combined represent a whopping 25% of their host GDP, which just so happen are virtually all the countries that form the Developed world (with the exception of the UK). Which allows us to conclude several things. First, the rapid expansion in balance sheets was conducted primarily to monetize various assets, in the process lifting stock markets, but just as importantly, to find a natural buyer ,,,,,,,,,,,,,,,,,,,,,MORE,,,,,,,,,,,,,,,,,,,,
I had to throw this part in,,,,,,,,,,,,,,,,,,,,,
it also means that central banks now implicitly account for up to 25% of developed world GDP!
What does this mean? It means that nearly $8 trillion in world economic growth is artificial and exists only courtesy of central bank intervention
http://www.zerohedge.com/news/top-three-central-banks-account-25-developed-world-gdp?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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