US vs. China Money Supply - Who is Printing More?

For all the hype talk about US hyperinflation and soaring money supply from the Bernanke Fed, let's add some perspective on money supply growth as well.

US vs. China M2 Absolute Amounts

US vs. China M2 Year-Over-Year Percentage Change




The above chart provides a nice visual explanation for the "reverse decoupling" and outperformance of the US stock market in 2011. Money supply plunged in the Eurozone as well.

Bernanke flooded the markets with liquidity, yet all if did was hold stocks flat. Compared to China and Europe, that was a huge "accomplishment" but it fueled a rise in gasoline and food prices and brutally punished those on fixed incomes with excessively low interest rates on savings accounts.

Note that Money supply in China in mid-to-late 2009 was soaring at 30% annual growth. The recent stock market plunge in China came with growth "collapsed" to 13.60%. Meanwhile M2 growth in the US peaked at 10%.

All things considered, it is amusing to hear all the US hyperinflation rants, especially those accompanied with a virtual love affair for China such as Peter Schiff and Jim Rogers.

Those looking for malinvestment can find no bigger place than China.