The PBoC , or People’s Bank of China have become the main provider of global liquidity with its total assets topping 28 trillion yuan (about $4.5 trillion dollars). By comparison, the Federal Reserve’s balance sheet is a paltry $3.5 trillion dollars.
The PBoC has seen a 118 percent rise over the past five years in its balance sheet.
China’s broadest measure of money supply, M2, was up 146% over the past five years to 85.2 trillion yuan (13.8 trillion dollars) by the end of 2011 and China alone accounted for 52% of the world’s new M2 in 2011. This makes the PBoC’s governor, Zhou Xiaochuan, in charge of the largest pool of money on earth. He is now controlling more money than Ben Bernake. These two combined are a global tag team of liquity spraying money all over the world’s economic system.
It has now become apparent all of this money cannot be printed fast enough. The U.S. Treasury has set up a direct computer link with the PBoC. The PBoC can now buy treasuries directly and bypass traditional primary dealers.The mad hatters in Chinese central planning circles can now directly monetize U.S. debt and enable more government spending. The Chinese Central Bank can now print more money so the U.S. government can load up on debt. It was a Chinese surplus of savings that was blamed for causing the false housing boom…now we have a direct link to blowing up and crashing U.S. sovereign debt much like the housing market.
It a tea party of terror and the mad hatters have their hands on the doomsday machine.
Its Cntrl+p for print.
Source: ChinaMoneyReport
