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

We've talked a good bit about
how the Chinese government is printing yuan to buy a
foreign exchange to keep the yuan 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 supply. This 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 a
same point in '09 to '10. Let me take November '09 to
November '10, and I'll look at their M1 money supply. I'll look at their
M1 money supply. I'm going from
November to November because we'll see some
of the other charts, we actually have data for there. We don't have
December to 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 212,493
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 259,420 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, 212,493. So the difference is 46,927. Now this is in
hundred million yuan. So if you wanted
it in million yuan, you want to multiply by 100. I think it's pronounced
"you-wen" or "you-won." I'm not a Chinese
pronunciation expert. This is in millions of yuan. And now if we wanted
it in billions we can divide this by 1,000. So let's divide this by 1,000. So it's roughly
4.6, 4.7 trillion yuan increase in
their M1 money supply from November, 2009
to November, 2010. Sort of 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, 6.5 yuan per dollar. So let me just
divide that by 6.5 to get a rough approximation for
what that would be in dollars. And we get $721-- remember
this was in billions-- so we're actually $722 billion expansion
in the M1 money supply of China from November, 2009
to November, 2010. In the next video,
we're going to see how this compares to the 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 buy foreign exchange from
other current countries, and essentially to keep
the Chinese yuan devalued. This is Salman Khan of
the Khan Academy for CNBC.