A couple more numbers

FT:

Over the past 10 years, Chinese banks have been on a credit and money creation binge. They have created $21 trillion of new money since 2009, more than 2x the amount of money supply created in the US, Europe, and Japan combined over the same period. In total, China’s money supply stands at $28 trillion. It equals the size of broad money supply in the US and Europe put together, yet China’s nominal GDP is only 2/3 that of the US.

Much more at ZH. In particular, it is said that US bank assets have increased $2.1 trillion since 2008, while the comparable number in China is over $15 trillion. This is the first time we have seen these particular comparative numbers, so we’ll have to study them a bit, but they seem odd.

2 Responses to “A couple more numbers”

  1. Neil Says:

    So, where’s the inflation? Nobody has a mattress that big.

  2. feeblemind Says:

    With that much new money created, wouldn’t that mean that China’s yuan is grossly overvalued vs the dollar and Euro?

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