Who's Central Bank can hold more assets? The race is on!

The race is on to see which central bank can hold more assets on their balance sheet and when they win, we all lose.

The US FED gets all the press as of late as their balance sheet continues to swell.

This is for good reason considering they are setting record high after record high, however, the they are actually far behind many others in relation to GDP.

GDP is the total economic output of a country, which is referred to as gross domestic product.

The US today hit another new all time high both in total amounts on the FED's balance sheet and also as a percentage of GDP.

Sees:

(Source: https://cointelegraph.com/news/bitcoin-supercycle-may-emerge-in-2021-as-fed-balance-sheet-hits-new-record-high)

The total amount held on the FED's balance sheet is now $7.44 trillion, which is the highest level ever.

As a percent of GDP, that is roughly 35% of the total GDP for the US.

While that is also a record for the US, it's nothing compared to the ECB (which is at 71% currently) and both the SNB and BOJ, which are both over 100% of GDP respectively.

The interesting thing about this is that the percentage can really spike if the assets on the balance sheet keep climbing and GDP is contracting.

While my guess is that the GDP is going to start climbing again, there are no guarantees.

This is exactly why bitcoin matters.

Once the balance sheet starts swelling, it doesn't really ever contract.