China'S Banknote Rate Has Been Around Two Times That Of GDP.

In December 11th, the central bank released the financial statistics in November. The main contents are as follows:

At the end of 1 and the end of 11, the balance of M2 was 137 trillion and 400 billion yuan, an increase of 13.7% over the same period last year. The growth rate was 0.2 and 1.4 percentage points higher than the end of last month and the same period last year.

2, RMB deposits increased by 1 trillion and 430 billion yuan in the month, and foreign currency deposits decreased by 20 billion 300 million dollars.

3, RMB loans increased by 708 billion 900 million yuan in the same month, a decrease of 234 billion 700 million yuan compared with the same period last year.

4, in November, the scale of social financing increased to 1 trillion and 20 billion yuan, 487 billion 800 million yuan more than last month, 108 billion 900 million yuan less than the same period last year.

The above data show that although the scale of social financing and the growth rate of RMB loans are not too bad, they are still weak compared with the same period last year.

Foreign currency deposits are decreasing, which is related to a sharp decrease of US $87 billion 200 million in foreign exchange reserves in November, showing strong expectations for the devaluation of the renminbi.

On the whole, China's banknote rate is fast, but it is not out of control.

Vietnam is a typical example of runaway control. Before the Asian financial turmoil in 1997, the Dong shield also had circulation of wool and fractional currency.

But after the Asian financial turmoil and the global financial turmoil, several rounds of depreciation have fallen. Now in Vietnam's big cities, the last toilets charge 2000 Yuan Dong (equivalent to 0.57 yuan), and the motorcycle is 2000 yuan.

Chinese tourists in Vietnam can only become "millionaires" immediately by exchanging RMB 300 yuan with local tour guides.

According to the need and intensity of steady growth, China in 2015

M2 growth is likely to reach 13.9% or 14%.

This growth rate will exceed the growth rate of the previous 4 years.

But if you look at the form above, you can see that the M2 growth rate is far from being out of control.

Growth rate, which means that liquidity continues to improve, which is good for the stock market and the property market. It means bad money for banks.

For the RMB exchange rate, this will further increase the pressure of its depreciation.

Most noteworthy is that the growth rate of broad money M2 continued to rise to 13.7% on the basis of 13.5% last month.

This rate has hit a new high since June 2014.

This means that

The tap is screwed up, and the money supply is speeding up.

With the words of ordinary people, printing money has accelerated.

If observed in the year, the M2 growth rate of generalized money in 2015 is likely to be the highest one since 2010.

China's banknote rate has been around two times the GDP growth rate, which is an important reason for the depreciation of the renminbi.

That is to say, the speed of printing money is much faster than the speed of "creating wealth".

This reached its peak when the "four trillion policy" came out in 2009, and the "speed of printing money" was 3 times the speed of wealth growth in that year.