Below we share some remarkable observations from Goldman's Borislav Vladimirov, who makes a very simple case: China now has no choice but to activate QE - just as we have been saying all along.
If it doesn't, M1 will fail to grow faster than M2, and the government "will spread the monetary crowding out to more weak borrowers in the economy", since the winners (successful corporates and rich households) will save the impulse and kill the multiplier, resulting in an even bigger hole for China 12-18 months from now, and global deflationary destruction.
On the other hand, if China does do QE, oil will soar, and bitcoin and gold will be orders of magnitude higher once Beijing triggers then next global reflationary tsunami.
