Fed Balance Sheet Increases By $50 Billion In One Week, $100 Billion In One Month, $1 Trillion In One Year

Five years after the "recovery" began, the Fed continues to monetize more debt as part of QE3 than at any time in history, and certainly more than during QE1, Twist, and QE2, as can be seen on the chart below (remember: all that matters is the flow, as we noted well over a year ago [4], and as even the Fed has finally realized [5]).Why is this important? Because as even the Treasury has now admitted, the Fed's daily liquidity injections are all that matters [6]. Of note: in the just completed week, the Fed's balance sheet increased by over $50 billion (again, in one week), by $100 billion in the past month, and by just shy of $1 trillion in the past year.Incidentally, this is "money" that continues to not make its way into the economy, and every single "reserve" dollar created by the Fed in exchange for monetization, is used by banks to ramp asset prices to now daily record levels.

More