China’s total credit market debt rose from $7T to $35T (~500%) in the last 9 years. Yet, despite it all, GDP and monetary velocity continue to decline

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COPPER: down -17.5% in 2018, the Chinese have not been able to centrally plan this market price higher = Bearish TREND

@Hedgeye #reiterated

China Not Messing Around: Serious QE Means Serious Currency Devaluation

“They. Drew. First. Blood.” So said John Rambo, and a similar sentiment may well be echoing through the halls of Party central in Beijing. With the Trump administration stuck as the Fed is in QT mode while raising rates to fight inflation, it may be heading into the “No chance of a currency war” currency war woefully under-armed.

 

China’s total credit market debt rose from $7T to $35T (~500%) in the last 9 years. Yet, despite it all, GDP and monetary velocity continue to decline – and these charts are based on numbers officially inflated by the gov’t. 9 yrs x 8% avg growth = 72% GDP growth vs 500% x debt