THE QE ERA OF THE UNITED STATES FEDERAL RESERVE GENERATED $5.13 TRILLION IN DEPOSITS IN THE “FEDERAL RESERVE”, AND MACRO-LIQUIDITY AND REAL CREDIT WERE RECONCILED

14 AUGUST, ACCORDING TO MARKET SOURCES, LONG-TERM STATISTICS BASED ON FEDERAL RESERVE ECONOMIC DATA (FRED) SHOW THAT IN THE 1980-2008 ERA OF SCARCE RESERVES, NEW DEPOSITS AND LOANS FROM UNITED STATES COMMERCIAL BANKS WERE ADDED. THE RATIO REMAINED ALMOST 1.01 TIMES AS HIGH AS THE INCREASE IN THE LOAN STOCK; AFTER 2008 IT ENTERED THE QE ERA WITH AMPLE RESERVES AND AN INCREASE OF 1.75 TIMES THE RATE OF NEW DEPOSITS, CREATING A STRUCTURAL OPENING KNOWN AS THE “FEDERAL RESERVE”. THE ANALYSIS INDICATES THAT THE GAP IS ESSENTIALLY AN EXTENSION OF THE BALANCE SHEET OF THE FED ' S LARGE-SCALE ASSET PURCHASE PLAN: THE CENTRAL BANK CREATED A RESERVE BALANCE WHEN IT PURCHASED THE SECURITIES TO GENERATE A DEPOSIT THAT DID NOT DEPEND ON PRIVATE CREDIT, THE SIZE OF WHICH WAS HIGHLY CONSISTENT WITH THE FEDERAL RESERVE ' S NET SECURITIES LIQUIDITY TARGET (SECURITIES HOLDING LESS TGA ACCOUNT AND REVERSE PURCHASE SIZE), WHICH AMOUNTED TO $5.13 TRILLION AS OF JUNE 2026. THIS CORRECTION OF THE TRADITIONAL SINGLE NARRATIVE OF “LENDING TO CREATE DEPOSITS” SUGGESTS THAT POST-CRISIS SAVINGS HAVE BEEN LARGELY BLOATED BY CENTRAL BANK BALANCE SHEETS, THAT HIGH LEVELS OF BANK INDEBTEDNESS HAVE NOT BEEN EQUAL TO REAL CREDIT BOOMS, AND THAT THERE HAS BEEN A HISTORIC DECOUPLING BETWEEN MACRO LIQUIDITY AND REAL CREDIT EXPANSION。