Tuesday, July 12, 2011

Chinese Money Supply Growth versus U.S. Money Supply Growth

The chart below shows the recent remarkable growth in the Chinese money supply. This is what is causing the accelerating inflation in China. While the 35% plus growth in the money supply has slowed in China to 15.6%, this will be enough to cause a Chinese stock market crash and slowdown of the economy, it will not be enough to stop price inflation.

In other words, China is headed for a crash followed by stagflation.

In the U.S. money supply, although not as dramatic, is starting to turn up this will result in  a manipulated boost in the stock market and economy and accelerating price inflation.

Bottom line there is a mess coming for both countries. In China, it will be price inflation and overall stagnation. In the U.S., it will be price inflation and a manipulated boom.



  1. Is Money growth linked to the M2NSA?

  2. Is M1 and whatever "True money supply" is supposed to be even comparable?

  3. @Noo Yawka you need to go back to school to understand. Go on, head over to the Mises Academy buddy