Bitcoin Advocate Mark Yusko Calls ECB's Relentless Money Printing "Fiat Fiasco"

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Tue, 10/20/2020 - 16:01
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Alex Dovbnya
The balance sheet of the European Central Bank has reached a new all-time high
Bitcoin Advocate Mark Yusko Calls ECB's Relentless Money Printing "Fiat Fiasco"
Cover image via www.morgancreekcap.com
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The balance sheet of the European Central Bank (ECB) has hit a fresh all-time high of €6.743 tln, according to data from Bloomberg.

ECB
Image by @Schuldensuehner

Morgan Creek Capital Management CEO Mark W. Yusko decried this relentless money printing as a "fiat fiasco" in a recent tweet.

To infinity and beyond

ECB's balance sheetthe total amount of assets and liabilities it holdshas swelled by €17.8 bln due to unprecedented quantitative easing.

It now represents a staggering 66 percent of the gross domestic product of all Eurozone countries, as Europe is undergoing Japanification with negative interest rates and low inflation.

Major central banks showed little to no hesitation to unleash money printers when the global economy spiraled into recession.

As reported by U.Today, the Federal Reserve waded through uncharted territory, such as unlimited QE in late March.

Deutsche Bank economist Matthew Luzzetti now expects the Fed's balance sheet to topple the $20 tln mark.

However, Federal Reserve Chairman Mark W. Yusko claimed that its size did not threaten the country's financial stability during a Senate hearing in June:

I don't think that the balance sheet at anything like its current size presents any real threat to either inflation or financial stability.

Related
ECB President Christine Lagarde on Crypto: 'We Want to Play an Active Role'

Euro and Bitcoin are soaring

Even though the ECB continues to outpace the Fed in terms of balance sheet expansion, the Euro is only getting stronger.

It is now 11.27 percent against the dollar since its yearly low was reached on March 19, when a massive liquidity crunch prompted an outpouring of demand for the greenback.

Meanwhile, the dollar index (DXY) is having its third consecutive day in the red while Bitcoin is trading just below the $12,000 mark.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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