ECB Now Owns 50% of Eurozone

ecb balance sheet 53 gdp july 2020

The European Central Bank (ECB) has seen a stratospheric rise in its balance sheet which has hit a new all time high of €6.3 trillion. As can be seen above that’s a trippling in just half a decade with $2 trillion added just this year. Interestingly this vast money printing seems to have had no effect on the economy which has stagnated since 2008. In the early 2000s eurozone was booming, doubling in GDP, but since then it hasn’t quite been moving. One reason for this stagnation may well be government debt which has increased to €10 trillion in the eurozone, close to 100% of its circa €12 trillion GDP. Meaning more and more taxpayer’s money is being used to pay back the debt which is primarily owned to banks. As such the government has less to invest in higher education or cutting edge research, while citizens have less to…

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