Already We Have–Chart Of The Year For 2018

The chart was orginally developed via Zero Hedge in a post titled: The $2 Trillion Hole: “In 2019, Central Bank Liquidity Finally Turns Negative”

Chart 1 shows year-over-year changes in global asset purchases by central banks (we also include China FX reserves here). Given this year’s slowdown in ECB and BoJ QE (the latter, in particular, is striking in USD terms), we are well past the peak in global asset buying by central banks. But with the Fed now embarking on balance sheet shrinkage, the start of 2019 should mark the point where year-over-year asset purchases finally turn negative – a trend change that will come after four straight years of expansion.