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
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.”