The head of China's sovereign wealth fund in 2009: "both China and America are addressing bubbles by creating more bubbles."
He's right.
Global credit excess is worse than before the 2008 crash.
The U.S. and Japan have been easing like crazy, but -- as Zero Hedge notes [if you missed it when Tyler Durden first posted this] -- China has been much worse:
Here is just the change in the past five years:
You read that right: in the past five years the total assets on US bank books have risen by a paltry $2.1 trillion while over the same period, Chinese bank assets have exploded by an unprecedented $15.4 trillion hitting a gargantuan CNY147 trillion or an epic $24 trillion -- some two and a half times the GDP of China!
Putting the rate of change in perspective, while the Fed was actively pumping $85 billion per month into US banks for a total of $1 trillion each year, in just the trailing 12 months ended September 30, Chinese bank assets grew by a mind-blowing $3.6 trillion!
Here is how Diapason's Sean Corrigan observed this epic imbalance in liquidity creation:
"Total Chinese banking assets currently stand at some CNY147 trillion, around 2 times GDP. As such, they have doubled in the past four years of increasingly misplaced investment and frantic real estate speculation, adding the equivalent of 140% of average GDP -- or, in dollars, $12.5 trillion -- to the books. For comparison, over the same period, US banks have added just less than $700 billion, 4.4% of average GDP, 18 times less than their Chinese counterparts -- and this in a period when the predominant trend has been for the latter to do whatever it takes to keep commitments off their balance sheets and lurking in the 'shadows'!
"Indeed, the increase in Chinese bank assets during that breakneck quadrennium is equal to no less than seven-eighths of the total outstanding assets of all FDIC-insured institutions! It also compares to 30% of Eurozone bank assets.
Truly epic flow numbers, and just as unsustainable in the longer-run.
And here:
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