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.
In contrast, as much as your loathe Ben Bernanke’s money printing, the People’s Bank of China has printed much more. Over the same period, M2 money supply has only increased by some 27% only.
Source: PBOC, Federal Reserve
After all, China was the country which invented both paper and printing (alright, that was a joke, that’s not really relevant).
This article originally appeared here: Chart: Since Lehman’s collapse, China’s money supply has doubled
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