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.


(ChartViaEconomicsJunkie)
at 10:36:00 AM

4 comments:

  1. UnknownJuly 12, 2011 at 11:33 AM

    I agree with the general idea of this article -- that China could be a serious problem. But the article doesn't do it for me. It needs to be longer and to fill in more empty spots in its argument. Keep trying.

    ReplyDelete
  2. Markie OlesJuly 12, 2011 at 1:11 PM

    Is Money growth linked to the M2NSA?

    ReplyDelete
  3. AnonymousJuly 12, 2011 at 6:16 PM

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

    ReplyDelete
  4. ChrisJuly 15, 2011 at 5:09 AM

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

    ReplyDelete

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