Economics

The united states has a trillion dollar problem, an addiction to debt which is growing by the day. Its debt has grown by over 800 percent since 1990 accelerating its unfavorable title of having the largest debt by value in the world. But does it really matter? The economy of Saudi Arabia is a great example of what happens when you fail to adjust your economy quickly enough to shifting economic sands. Having started an oil price war in march 2020 by increasing supply at a time when demand was crashing, this inevitably led to an oil price crash. In doing so, Saudi Arabia has encountered a bit of a problem, an oil price below the magic $76 threshold required for the state to balance its budget. The Chinese economy managed to do something no other large economy did in 2020, avoid a full-blown recession. International consensus is that China will grow by about two percent meaning China will be growing alone. With the world economy in its worst shape since the 1930s this is honestly a remarkable achievement when you think about it, the economy of China bounced back from a near seven percent slump in the first quarter of 2020, which was the biggest contraction since records began in the early 90s. The scale and speed of this recovery took virtually everyone by surprise including Chinese officials who scrapped their 2020 economic targets early in the year, at a time when the V-shaped recovery was far from certain, but what you may be wondering is what was behind China's quick recovery?