While I realize this chart makes the rounds on social media all the time, it also doesn’t represent an appropriate comparison. A sharp and distinct differences in the structure of the American and Chinese corporate financing models greatly reduces the applicability of this comparison. China is heavily, almost exclusively, reliant on bank loans for all financing needs. Both short and long term. America is more reliant on capital markets. This difference corrupts the M2 comparison made. @Trivium View quoted note →