The FT recently ran an article that states that “leading central banks now own a fifth of their governments’ total debt.”
The figures are staggering.
Without any recession or crisis, major central banks are purchasing more than $200 billion a month in government and private debt, led by the ECB and the Bank of Japan.
The Federal Reserve owns more than 14% of the US total public debt.
The ECB and BOJ balance sheets exceed 35% and 70% of their GDP.
The Bank of Japan is now a top 10 shareholder in 90% of the Nikkei.
The ECB owns 9.2% of the European corporate bond market and more than 10% of the main European countries’ total sovereign debt.
The Bank of England owns between 25% and 30% of the UK’s sovereign debt.
A recent report by Nick Smith, an analyst at CLSA, warns of what he calls ”the nationalization of the secondary market.”