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Diupdate

Global Central Banks Balance Sheet USD-Adjusted

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Summing up central banks balance sheet of:

US , China, EU, Japan, UK,
Swiss, Australia, Canada, Norway
Brazil, Russia, India, Mexico, Indonesia
Taiwan, HK, Korea, SG, Thailand

Then adjusting it to USD as the common denominator for comparison.

Net Foreign Assets (or foreign reserves) + Net Domestic Assets (or domestic credit, usually Money Supply M1) = Total Assets of the Central Bank Balance Sheet

In some way, the central bank balance sheet could be M2. However, I find some of the indicators don't add up and I don't have the time to check them out. This indicator is just a proxy. The issue with using central bank balance sheet to determine liquidity in the system is that it doesn't account for 1) collateral used for liquidity management in the public and private system, 2) shadow-banking financial system. As usual, US + EU + Japan publishes their data every weekly and the rest of the central banks publish monthly. I have removed any country with hard-pegged currencies except HK.

Additional materials to aid understanding:

imf.org/-/media/Files/News/Seminars/2017/macroeconomist-training-program-011118/session-2-1.ashx
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oreilly.com/library/view/central-bank-balance/9781547400591/content/13_chapter03.xhtml

yardeni.com/pub/balsheetwk.pdf

ECB, Fed and BOJ updates weekly. The rest is monthly or annually.
Catatan Rilis
Changed the intro chart back to SPX vs market breadth vs this indicator
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