Wednesday, March 28, 2012

Balance Sheets

EOTrs ("End Of Timers") like to discuss the static position of Central Bank balance sheets, pointing to debt/GDP ratios as the harbinger of several "invevitable" consequences stemming from the vile and evil asset swapping activities of these blind and moronic institutions.

So, the above graphs are the subject of much talk this morning.

And yet, not nearly as much attention regarding the first chart above.

Its the relative, not absolute positions that one must be concerned say nothing of the large difference in opacity between the Central Banks and their relative ability to employ liquidity without inflationary pressures.

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