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Current time:0:00Total duration:3:12

Video transcript

we've talked a good bit about how the Chinese government is printing UN 2x4 in exchange to keep the UN devalued but what I want to do in this video is actually look at the data and show you that I wasn't making all of that stuff up so this is actually data from the People's Bank of China this is directly from their website and right over here this is the 2010 money supplies is the 2009 money supply you can get any money supply any year that you want from their site and what we could do is just look at what happened over just even 2010 or from the same point in oh 9 - oh 10 let me take November oh 9 to November oh 10 and just I'll look at their m1 money supply I'll look at it at their m1 money supply and I'm going from November to November because we'll see that some of the other charts that's we actually have data for there we don't have December in December for some of the other charts I'm going to use in this video but it just gives the general idea if you go from November of 2009 the m1 money supply now this is in hundred million yuan so there was a two hundred twelve thousand four hundred ninety three hundred million yuan and we'll try to convert these into numbers that make a little bit more sense and then you fast forward to November of 2010 the m1 is two hundred fifty nine thousand four hundred twenty hundred million yuan so if we let's get a calculator out and actually make some sense of that so a year later it's at 259 420 and from that let's subtract what it was before two hundred and twelve thousand four hundred and ninety three so the difference is 46 thousand nine hundred and twenty seven now this is in hundred million yuan so if you wanted in million one you want to multiply by a hundred I think it's pronounced UN or you want I'm not a Chinese pronunciation expert so that gets us to for this gets it's this is in millions of UN and now if we wanted in billions we can divide this by a thousand so let's divide this by a thousand so it's roughly four point six four point seven trillion UN increase in there n once money supply from November 2009 to November 2010 so a pretty dramatic increase and just so you could put this in the scope of dollars I'll use a rough approximation for the current exchange rate six point five UN per dollar so let me just divide that by six point five to get a rough approximation for what that would be in dollars and we get 721 remember this was in billion so we're actually 722 billion dollar expansion in the m1 money supply of China from November 2009 to November 2010 and the next video we're going to see how this compares to their actual increase in foreign exchange or actually foreign assets and we can see how much of this was actually just to go and go buy things from other countries or bike for an exchange from other current countries and essentially to keep to keep the Chinese when devalued this is Salman Khan of the Khan Academy for CNBC