In the past four years, China’s economy has shown a staggering and alarming picture: the broad money supply (M2) skyrocketed from 238.29 trillion yuan at the end of 2021 to 335 trillion yuan by the end of October 2025, adding up multa to an increase of 96.7 trillion yuan. At the current pace, the M2 balance is likely to exceed 340-345 trillion yuan by the end of December 2025, with a total increase of over 100 trillion yuan in just four years. This means the central bank injected 100 trillion yuan of currency into the economy in a mere four years.
This scale of growth and speed of expansion is unprecedented in China’s history, and globally, it is far ahead of any other country. By 2025, China’s GDP is expected to be around 140 trillion yuan, with the M2-to-GDP ratio reaching 230%-245%, significantly outpacing the United States, the Eurozone, Japan, and all major economies, setting a new global record.
What’s even more shocking is the severe imbalance between the growth of money supply and GDP: from 2021 to 2025, M2 grew at an average annual rate of about 9.4%, while GDP grew by only 5%. This means the money supply has been growing at nearly twice the rate of economic growth. According to any economics textbook, such a flood of money should have led to intense inflation, wild asset bubbles, and an overheated economy, even spiraling out of control. However, the reality has been brutally reversed—this massive increase in money supply has not sparked economic recovery, but instead deep deflation and stagnation. The Consumer Price Index, or CPI, has remained sluggish at 0.3%-1% for years, with core CPI staying below 1%, housing prices have fallen for 29 consecutive months, private investment growth has dropped to historic lows, and the real economy is in despair. People’s attitude can be summed manchester election results up as: “If I have money, I’m too scared to spend it. If I don’t have much money, I’m even more john wick scared to spend it.”
So, what happened to this 100 trillion yuan? Where did all that money go?
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