$47 liquidity bomb. Trillions: China Prints Money in Rhythm Record and guess who can be the winner?

[Igor Pereira]

Recent data confirm that China's monetary supply (M2) has reached stratospheric levels, surpassing the brand of ¥337 trillion Yuan November 2025. To put into perspective: this is equivalent to approximately $47 trillion dollars. — an ocean of liquidity which is more than double the entire monetary supply of the United States.

By Igor Pereira

The Chinese government, fighting an internal economic downturn, opted for "nuclear option": Massive Monetary Printing.

• The Real Number: Although they say 44 trillion dollars, the latest data indicates that Chinese M2 has already crashed $46.8 trillion (converting ¥337T at the current rate).

• Growth: Even with the economy slowing down, the money machine continues to grow at a rate of 8% per year. That means trillions of new Yuans being raised out of nowhere every 12 months.

The Inevitable Consequence: Depreciation and Asset Inflation

Basic economy: When you flood the market with paper money, this paper loses value.

1. Silent Cambial War: Yuan's oversupply presses the Chinese coin down. Although the government tries to hold the exchange rate (currently stable around 7.04 USD/CNY), the key pressure is to Structural devaluation. For the trader, this means that China will continue exporting deflation to manufactured products, but inflation for real assets (commodities).

2. Escape for Real Assets: Where's all that printed money going? He doesn't just stand there. It flows to assets that the government cannot print. This explains why, even with the "weak" Chinese economy, they are buying Gold in industrial quantities.

For us, traders

• Perfect Correlation: Studies show that the price of Gold has a correlation of 0.85 with the expansion of the global monetary supply (M2).

• Gold as Refuge: With $47 trillion of Chinese liquidity looking for a home, and the Chinese real estate market in crisis, Gold becomes the only viable security asset. JP Morgan Analysts and other banks already project Gold seeking levels of records in 2025/2026, driven directly by this monetary flooding.

What to Expect and How to Operate?

• Scene: China is effectively devaluing its currency to save its economy.

• Action: Any correction in the XAU/USD should be seen as an opportunity to purchase. Long-term fundamental support is not technical; it is the mountain of money that needs to be protected from loss of value.

• Target: Global liquidity is at a historic peak. Don't bet on the world where $47 trillion has just been created.

Summary: The Chinese Money Printer is on at most. This dilutes the value of cash and turbines the market.