The M1-M2 "Golden Spread" Emerges: Economic Inflection Point in Mid-2025 and Outlook for Asset Prices
The Significance of the M1-M2 Spread In the June social financing data released in mid-July, the growth rate of M1 has already reached a clear inflection point and is rising rapidly. If M1 growth continues to outpace M2 in the coming months, forming what is known as the “golden spread,” it will essentially confirm that the liquidity environment is improving. In recent years, those bearish on China have constantly harped on the “liquidity trap” and “deflation”—this data directly contradicts their claims. ...