The total amount of money M2 in the United States is 20963.4 billion US dollars, and China's M2 is 273.81 trillion, equivalent to 38060 billion US dollars, which means that the total amount of RMB is 1.82 times that of the US dollar, but the GDP is only 64% of that of the United States, that is, based on the same scale, the currency issued by China is 2.84 times that of the United States.

Why does the United States print less money but there is inflation, while China prints so much money but there are signs of deflation? Moreover, the US dollar is still circulated globally, and the RMB is mainly concentrated in China, which makes it even more difficult to explain this phenomenon, right?

To answer this question, use the human body as an analogy. If most of your blood is concentrated in one leg, what will happen? Yes, other organs and parts are anemic. The reason why China prints a lot of money but has deflation is the same.

The United States circulates 20 trillion US dollars in various economic sectors, and the high circulation ratio and speed cause inflation. China's total amount of RMB 273.81 trillion, equivalent to 380,000 US dollars, has a considerable part that is actually not circulated, and there are not many RMB involved in circulation, that is, most of the wealth is in the hands of a few people, and they do not participate in economic activities.

To put it bluntly, if the 273.81 trillion yuan is divided equally among 1.4 billion people, and each person can get 195,500 yuan, what kind of economic phenomenon will occur? Yes, super inflation, because ordinary people have consumption needs, but they just don’t have money. When everyone has money, they consume, and there will be a shortage of materials. I think you should have a deeper understanding of this issue after reading this.