You Won't Believe How Much China Needs To Tighten To Stem Inflation

If you want to know why everyone’s so freaked out about ongoing Chinese tightening, considering the following from Waverly Advisors:

Just how much more tightening is needed to slow the Chinese stimulus feed economy before it derails?  M2 for February released last night registered at 25.52% Y/Y after two successive rounds of reserve ration increases by the PBOC.  Compare that with the sub 2% that US money supply is growing at and you’ll get the idea.


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