"And at the same time China's money supply and credit are still expanding. Last year, the closely watched M2 increased by only 13.6%, down from 2012's 13.8% growth. Optimists say China is getting its credit addiction under control, but that's not correct. In fact, credit expanded by at least 20% last year as money poured into new channels not measured by traditional statistics."
Overall, M2 in China is up by about 1000 percent since 1999. That is absolutely insane.
But I am not the only one talking about it. In fact, the World Economic Forum is warning about the exact same thing...
"Fiscal crises triggered by ballooning debt levels in advanced economies pose the biggest threat to the global economy in 2014, a report by the World Economic Forum has warned."
What has been going on in the global financial system is completely and totally unsustainable, and it is inevitable that it is all going to come horribly crashing down at some point during the next few years.
It is just a matter of time.
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