Zarathustra: We have just discovered that China’s M2 money supply has doubled once more since the collapse of Lehman brothers. M2 money supply currently stands at around RMB90 trillion, and it was at about RMB45 trillion the month before Lehman collapsed. Thus the so-called RMB4 trillion stimulus after Lehman’s collapse (which is more like a RMB8 trillion fiscal stimulus in reality) has translated into a RMB45 trillion increase in M2 money supply.
via Chart: Since Lehman’s collapse, China’s money supply has doubled.
Hat tip to macrobusiness.com.au
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
The bubble grows to universe proportions with all governments refusing to accept what will happen when there are no more empty cities to be built nor precious farmlands to be concreted over by greedy communist cadres. Greece will fail, Spain will fail, China will fail. Greed has always produced failure.
“Greed has always produced failure.”
I have a slightly different take: “Debt has always produced failure”.
“History repeats itself, first as tragedy, second as farce” – K Marx.
“History doesn’t repeat itself — but it rhymes.”