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

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

 

BBG: China announces new policies meant to spur domestic demand. pic.twitter.com/qjjYucsIod

— Alastair Williamson (@StockBoardAsset) July 24, 2018

China lost one trillion dollars in reserves when the exchange rate moved from 6.2 to 6.9 over the course of two years.

Today, the exchange is close to covering that same distance in just two months. The next FX reserves data will be key pic.twitter.com/ifORrXvlsZ

— David Ingles (@DavidInglesTV) July 24, 2018

#China #Bulls having a moment as the gov unleashes fiscal stimulus (CNY65 bn tax cut of expanding pref policy for small tech firms to all firms, on top of goal of cutting taxes by 1.1trn). Monetary too. But @ WHAT END? The #Bears will prevail long-term but growth is priority now. t.co/aATfwMiTOQ

— Trinh (@Trinhnomics) July 24, 2018

Global Stocks, US Futures Jump After China Launches Fiscal Stimulus t.co/m4yQQODIO4

— zerohedge (@zerohedge) July 24, 2018