The Bank of Japan (BoJ) now has the equivalent of Y420 trillion yen (US$4tn) of ‘assets (!?)’ on its balance sheet. Asset is a broadly used term. When I looked at the US Fed’s balance sheet it is approximately $4.4tn (below). The BoJ is now 58% of purchases of equity ETFs in its home market and near as makes no difference 100% of new bond auctions. It is simple debt monetisation. So if we look at the immediate post GFC reaction the Fed doubled its balance sheet and has doubled it again (i.e 4x). The Japanese have also quadrupled since Abenomics and the Europeans have tripled. All courtesy of the printing press.
The ECB has started to hoover up ‘assets’ recently too now totalling 3.1tn euros (US$3.5tn)
Despite all this massive capital injection into the markets, economic growth continues to falter and inflation is such an elusive goal that the next thing we should await is a rejigging of the CPI baskets to fool us into thinking everything is OK!