Capital Wave - When Money Printers Go Brrr (But Only in China?)

While Jerome Powell takes a summer break... China's maintaining loose policy and tech stocks keep roaring. The problem is that we're just a Tweet away from more chaos.

Good morning:

Global liquidity has been a big driver of equity returns this year.

With the M2 at a new record high, it’s no wonder that stocks are moving and grooving.

Here’s the issue: Michael Howell's crew at CrossBorder Capital shows global money creation went from "printer go brrr" to "printer go... meh" in just a few weeks.

Seems to have been a drop from double-digit growth rates to a pathetic 1.5% annualized.

The Fed is playing hard to get with liquidity, But China's central bank has apparently discovered the cheat codes. They've hoofed roughly $1.5 trillion into their system over the past six months and show no signs of slowing down.

It's like watching your responsible friend order water while your other buddy is doing tequila shots. Someone's gonna have a wild night.

People continue to monitor the relationship between the U.S. dollar and the Yuan.

But the real story is what’s happening with the Yuan and its gold.

China needs gold to continue rising and dig itself out of its debt …