I don’t trust Goldman Sachs, but they’ve produced a very nice graph of central bank asset purchases, which was achieved by electronic “money printing”.
The graph shows that between 2006 and 2021, central bank balance sheets increased from $5 trillion to more that $50 trillion. A graph brings a few questions to mind.
- What would global GDP be in the absences of the financial injections? (much lower)
- What would would the interest rates be in the absence of the financial injections? (much higher)
- What would equity and other asset valuations be in the absence of the financial injections? (much lower)
- How long can central banks continue to debase currencies before faith in the system fails? (I don’t know!)
- Do authorities understand the risks and if so is this why they are in a hurry to adopt digital currencies? (yes, I think so.)
- Is the push for COVID-19 induced “digital health passports” connected to managing the challenges associated with maintaining power/control, the problems in the global financial system, and the transition to digital currencies? (I believe so.)