Chinese Deflation

From The Telegraph: China is on the cusp of a deflationary vortex. This was signalled late last year by the sharpest contraction in the (real) M1 money supply since modern records began. The hard data is now confirming the warnings.


From The New York Times: Prices are tumbling across the Chinese economy, according to government data released Monday, as a flood of goods pouring out of the nation’s factories and farms exceeds anemic demand from Chinese households and businesses.

CHINA M1 MONEY SUPPLY