In 2022, China issued an additional 28 trillion yuan.
The central bank will release monetary data every month, and many people may only care about the growth rate of M2, and the latest data is an increase of 126%。
But if we look at the specific monetary aggregate, we may be taken aback, by the end of last year, China's broad money volume was 266 trillion, an increase of 28 trillion in just one year.
A thought arises in many people's hearts. China has printed 28 trillion yuan more than in previous years, and if this huge amount of money is evenly distributed among individuals, each person can get nearly 20,000 yuan from it.
It's a pity that this can only be an illusion, in terms of data, so much more money has been issued, but in fact, the money is gone.
Where the hell does the money go?
As we all know, since 2022, the United States has continued to raise interest rates more and more intensively, only focusing on reducing the pressure on its own inflation and destroying the development of other countries. The world economy has been drained of momentum by the Federal Reserve's continued interest rate hikes and many events driven by the United States.
Of course, the U.S. has good reasons for this, because the U.S. market is mired in ultra-high inflation, but inflation is actually coming from the over-shipment direction of the dollar over the past few years.
Analyzing the economic development situation of the United States in recent years, we can see that China printed an extra 28 trillion yuan last year, which is actually not good news.
At present, our question is, whether the continued increase in M2 exceeding 10% will make the domestic market reproduce the current situation of the United States in the deep inflation crisis
For the time being, inflation for the whole of 2022 is only 2%, and the CPI in January this year was 21% does not seem to be high, but in real life, everyone finds that prices have quietly risen.
So will the 28 trillion bring a new round of vitality to China's economy?
According to the data, China's total economic output last year was only 6 trillion year-on-year. We threw 28 trillion and only saw 6 trillion splashes in the end.
In the United States, on the other hand, a large amount of money was printed, and GDP increased by about 2 percent year-on-year$5 trillion.
Could it be that the 28 trillion we printed disappeared out of thin air?
In fact, a large amount of money is invested in the country's infrastructure construction, and projects such as building roads, bridges, and buildings require a lot of financial and material resources.
Some of it has flowed into the domestic real estate industry.
In the past few years, we can clearly feel that everyone's enthusiasm for buying a house has long been much less than before, and the frequency of housing as a topic in the past has been very frequent. But nowadays, I don't talk much about houses.
In the past few years, the development trend of the real estate industry has been sluggish, and many people engaged in real estate companies have been forced to roll in in such a tense environment, even so, their income is mediocre, and they are even worried about salary cuts.
As a result, under the continuous promotion, the amount of corporate loans has skyrocketed.
In January of this year, loans to units increased by 468 trillion, most of which are medium and long-term loans, resulting in a record number of multi-directional loans-related data.
Obviously, an excess of money is flowing into the economy in this way.
But on the other hand, ordinary people have no willingness to increase leverage.
According to the data in January, the increase in loans by ordinary people was less than 260 billion yuan, which was negligible compared with the increase in loans to enterprises and institutions.
This also shows that the income of the public economy has not been significantly improved at this stage, and it is unrealistic to use all the savings to buy a house as in the past without sufficient funds to make everyone feel safe in the society.
Over the past few years, the domestic economic development has been affected by the world situation, and although the epidemic has left, the income of most people is no different from usual. If the income is not high, they will naturally choose to save money, or use it for financial management, investment, etc., and be more cautious about the arrangement of assets.
If so much money is distributed, if it does not enter the hands of the people, it will be difficult for it to flow into the market through consumption, and it will be even more difficult to stimulate domestic demand.
How to break this dead knot?