$8 trillion hides negative 19% interest

Source: FRED, St. Louis Fed.

Source: FRED, St. Louis Fed.

Sometime around the 19th of next month, the Fed’s balance sheet will reach $8.04 trillion (as another $120 billion is added).

By then, the balance sheet will have grown at a compound annual growth rate of ~19% since the Bernanke Bazooka at the time of the GFC.

That means the US dollar has been debased by 19% per annum.

Any business that has not generated a return on capital employed of at least 19% per annum has gone backwards.

Any investment portfolio that has not generated at least 19% per annum has gone backwards.

Looked at another way, interest rates are -19%.

Do zero yielding gold, diamonds, crypto assets, collectibles and commodities look better now?

Mike.

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Michael Ganon#markets, #equities, #bonds, #gold, #globalmarkets, #globaleconomy, #qe, #qeinfinity, #economy, #finance, #interestrates, #business, #trade, #tradewars, #transformation, #strategy, #ceos, #directors, #founders, #csos, #cfos, #c-suite, #currencies, #construction, #mining, #renewables, #technology, #leadership, #india, #china, #australia, #perthbusiness, #education, #research, #uk, #gdpgrowth, #retail, #businessowners, #future, #brexit, #nextlevelcorporate, #mikeganon, #community, #tradewar, #America, #covid-19, #bitcoin, # perthbusiness, #populism