Commodity prices are a bubble and the pin is closing in fast. China released credit data for April overnight the slowdown is outpacing even my expectations. China has yanked a credit handbrake.
Total social financing came in at 1.85tr yuan within which bank credit made up 1.47tr
This is down 38.5% year on year, the second decline of such magnitude in a row:
The jackboot is back in shadow credit and the PBOC has slammed bank growth as well:
The rolling annual is going into precipitous reverse:
M2 is already a falling anvil:
And broad credit is falling faster than even I expected:
One has to suppress a wry smile watching iron ore dance around at $240.