Twins: The ECB And The Fed

You might have the vague memory that the European Central Bank reacted somewhat negatively to the Federal Reserve’s massive balance sheet expansion a few years ago.  The ECB was not following in the same path as that of the Fed.  Well fast forward to the current Euro crisis and the ECB now has a balance sheet that far surpasses that of the Fed.  You have the two largest central banks in the world with over $6 trillion in unaudited funds and surely a good portion of that is toxic assets.  This trajectory is unfortunately a natural consequence of our current banking system.  These central banks focus on protecting their big banking allies and the crisis is still going on.  Of course the working and middle class will be paying for this in a variety of ways for years to come.  Ask the 25 percent unemployed in Spain and Greece how well the economy is doing.  Ask young Americans how the economy is doing…

http://www.mybudget360.com/dynamic-central-banking-duo-ecb-balance-sheet-fed-reserve-balance-sheet-2012/

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