Machine Learning

The answer is in Chinas monetary policy China has been pumping credit into the economy for over a decade We call it printing money€ in the west The Chinese call it credit growth China€™s monetary policy is similar to Japans in the 1980s, just on a larger scale The Chinese are not printing money to cover its deficits as Japan did But they are pumping money into the economy to promote economic growth, and they are doing it at a much faster pace than Japan ever did China is running the largest credit bubble in history The total amount of credit in Chinas economy, including loans and bonds China is at least four times larger than the US in terms of credit market debt China is also growing its credit at about twice the rate of the US Thats why the Chinese economy is growing much faster than the US But it€™s also why China is more vulnerable to a collapse in the yuan If the yuan keeps falling, the Chinese will have to print more yuan to cover their dollar debts that€™s why they hav already started