CHINESE DEBT REACHES 290% GDP

China has been divesting of US dollars while trying to recover from the COVID-19 downturn. Beijing considers the growing level of debt liabilities to be a potential threat to economic stability. China has tried to reduce its dependence on them, but the work in this direction had to be suspended because of the coronavirus pandemic.

The Industrial & Commercial Bank of China is the largest institution in the world. In 2020 it was running short on cash as COVID-19 trashed the economy. China would be wise to have several large banks instead of one big one. Depending on the recovery China may diversify banking and media so that competition is viable.

Russia is also known to be divesting of dollars. Unlike China, Russia does not have material trade with the US. On June 28 however, the Central Bank of Russia confirmed that the American currency would remain part of the Russian reserves. Russia ranks 5th in gold reserves.

Canada sold off its gold back in 2016 as the nation has vast resources to make the economy stable without the need for gold to pay for things. Canada has relatively well off with debt to GDP compared to the G20. Many nations with high debt levels need to take steps to reduce spending.

As the world recovers in 5 years the debt to GDP should improve as more people return to work, Progress will be improved with vast donations of vaccines to impoverished nations.

An agreement covering 90% of global GDP are backing a minimum 15% corporates tax.

China has delivered a few games so far, as more consoles are sold this will change. Gaming is now globalized which means a bright future ahead.