Cory's Insights – Wed 11 Dec, 2013
Some Stunning Perspective: China Money Creation Blows US And Japan Out Of The Water
The chart below is a great visual to present the massive amount of money China is printing. While the fact is China continues to print money on an unheard of level I believe they are only doing it to maintain the Renminbi’s standing compared to the US dollar and other large trading partners. There is no doubt that this much printing will cause bubbles within the country but what is not stated in the notes of the post is that a significant portion of this printed money is being used to buy hard assets (not limited to only the precious metals). When all countries are printing money we need to look further down the line and assess what these countries are buying with the created money. Unfortunately in the western world it is government debt and equities while in China it is physical assets. This will play a huge roll down the road unless we can get back on track.