Spark For Global Liquidity Has Just Been Lit

https://archive.is/vu4ZM

Thursday, Jul 17, 2025 - 01:45 PM

Authored by Simon White, Bloomberg macro strategist,

Money growth in China is showing clear signs of accelerating as stimulus begins to feed through. A sustained rise would be pivotal for US and global rates, adding upward pressure to inflation just as price pressures are beginning to re-intensify, and the independence of the world’s most important central bank comes under attack.

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Money in China is the single most important driver of global liquidity. It’s easy to forget in a financial world dominated by the US that, when it comes to money, China is the biggest player. China’s M1 is larger than the US’s M1 ex-savings deposits, and is a third of the G10’s total M1.