China – A Reversal of Urbanization?

by Pater Tenebrarum
Acting Man

Economic and Demographic Changes

We have discussed China’s debt and malinvestment problems in these pages extensively in the past (most recently we have looked at various efforts to keep the yuan propped up). In a way, China is like the proverbial “watched pot” that never boils though. Its problems are all well known, and we have little doubt that they will increasingly find expression. China’s credit bubble is one of the many dangers hanging over the global economy’s head, so to speak.

[…] China’s narrow money supply M1 – the money side of the ledger, which is a reflection of China’s enormous credit expansion. The recent spike higher has begun to reverse noticeably in February, with M1 falling back to roughly the level of November 2015 – click to enlarge.

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