{"id":53785,"date":"2020-06-21T08:13:49","date_gmt":"2020-06-21T13:13:49","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53785"},"modified":"2020-06-21T08:13:54","modified_gmt":"2020-06-21T13:13:54","slug":"a-staggering-number-over-18-trillion-in-global-stimulus-in-2020-21-of-world-gdp","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53785","title":{"rendered":"&#8220;A Staggering Number&#8221;: Over $18 Trillion In Global Stimulus In 2020, 21% Of World GDP"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/staggering-number-over-18-trillion-global-stimulus-2020-21-world-gdp\">&#8220;A Staggering Number&#8221;: Over $18 Trillion In Global Stimulus In 2020, 21% Of World GDP<\/a><\/h3>\n\n\n\n<p>On Friday, we relayed the&nbsp;<a href=\"https:\/\/www.zerohedge.com\/markets\/bofa-there-just-one-bull-market-short-and-fed-wont-let-you\">latest observations&nbsp;<\/a>from BofA chief investment officer, Michael Hartnett who concluded that there is just one bull market to short &#8211; namely credit &#8211; &#8220;<em>and the Fed won&#8217;t let you<\/em>&#8221; by which he means all central banks. As the following table shows, the balance sheet of the G-6 central banks has exploded, with the Fed&#8217;s total asset expected to double in 2020 amid an avalanche of money printing.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/BS%20tables.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p>And visually:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/balance%20sheets%20teaser.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p>Of course, it&#8217;s not just central banks: as Hartnett also explained there is also the 2020 fiscal bazooka which has a way to go, with the massive fiscal stimulus unleashed post-covid taking 3 forms in 2020: spending, credit guarantees, loans &amp; equity.<\/p>\n\n\n\n<p>Hartnett also noted that according to BIS data, US &amp; Australia lead spending (&gt;10% GDP), Europe is using aggressive credit guarantees (e.g. Italy 32% GDP), while Japan\/Korea are stimulating via government loans\/equity injections.<\/p>\n\n\n\n<p>But the most staggering fact was when one puts it all together.<\/p>\n\n\n\n<p>According to BofA calculations, in addition to the record 134 rate cuts YTD, the amount of&nbsp;<strong>total global stimulus, both fiscal and monetary, is now a &#8220;staggering&#8221; $18.4 trillion in 2020 consisting of $10.4 trillion in fiscal stimulus and $7.9tn in monetary stimulus &#8211; for a grand total of 20.8% of global GDP, injected mostly in just the past 3 months<\/strong>!<\/p>\n\n\n\n<p>And to think none of this would have been possible if officials had not collectively decided to shutdown the global economy in response to the coronavirus pandemic.<\/p>\n\n\n\n<p>For the interested, here is a full breakdown of all the fiscal and monetary stimulus as compiled by BofA:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/total%20stimulus%20injections.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/total%20stimulus%20injections.jpg?itok=doA5ykea\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;A Staggering Number&#8221;: Over $18 Trillion In Global Stimulus In 2020, 21% Of World GDP On Friday, we relayed the&nbsp;latest observations&nbsp;from BofA chief investment officer, Michael Hartnett who concluded that there is just one bull market to short &#8211; namely credit &#8211; &#8220;and the Fed won&#8217;t let you&#8221; by which he means all central banks. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2973,124,1234,2257,4318],"class_list":["post-53785","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-bank-stimulus","tag-central-banks","tag-stimulus","tag-world-gdp","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53785"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53785\/revisions"}],"predecessor-version":[{"id":53786,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53785\/revisions\/53786"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}