FED's Balance Sheet to GDP at levels not seen since ever

I stumbled upon a very interesting chart today while scrolling through the crypto news feeds.

It's one showing the FED's balance sheet compared with GDP.

As you can probably already guess, it's never been higher than it is right now.

Sees:

(Source: https://twitter.com/danheld/status/1355516327050489857/photo/1)

However, that's probably already something we were aware of, or at least should have been aware of. It's not new news.

What is new news to me, and probably many of you reading this is the trend that's going on here.

Sure the balance sheet to GDP ratio keeps climbing and climbing, again we could have probably guessed that to be happened.

But did you know that each time we have seen a rapid balance sheet expansion we have never seen the subsequent shrink back down to levels prior to the expansion.

In more clear English, every time the ratio has shot up like this, it has never gone back down as low as it came from. It has always bottomed out at a higher level.

That's not good.

It means the balance sheet never gets fully reset and we never get back to really strong economic growth.

It's a continued path towards complete destruction of our currency.

This trend is clear evidence that money printing is working, and if we continue down this path, it's not likely to work at any point in the future as well.

I suspect this time will be no different.

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