by Wolf Richter
Every now and then we get a sign.
Money creation in China has gone bonkers. Authorities have opened the valves, and new credit is surging through money pipelines, including state-owned banks and the “shadow banking” system, and so loans in just the first two months this year soared by $1 trillion. Where did this money go?
We don’t know, but we’re getting indications that some of it is showing up right here in the US.