Yes.
China was waiting for the US dollar to break lower before rapidly increasing their money/credit supply.
Given their relatively low yields on government bonds and a relatively strengthening currency vs the US dollar, copious debasement is about to ensue from China. 🇨🇳
Among other things, this bodes well for #bitcoin in fiat price terms.
They didn’t increase their supply. They decided to include residential demand deposits and prepaid funds received by nonbank payment institutions into M1 calculations, starting in 2025.
Correct.
China’s monetary supply increase is incoming.
I think it will be the primary driver of global M2 acceleration in the coming quarters.
It was already ramping up. The same thing happened when the US changed their definition of M1. It obscured a real expansion with a fake one.
I don’t fully understand the connection. Is it because they need to exchange their currency to USD and it gives them a bigger discount? Are there other reasons?
This is interesting!
Thank God humanity now has a sly, roundabout way to address these shenanigans.
