412. THE MYSTERY OF CHINESE GROWTH
This morning, I was looking at the Nikkei Shimbun (Japan's leading economics daily), and noticed the following graph of China's GDP growth since 2000:
This is very interesting if you reflect on it. After all, we are told by many popular peak oilers that:
- High oil prices always cause recession.
- The current recession was caused by the run-up in oil prices prior to July 2008.
How is that possible? If cheap oil is so critical to economic functioning, why doesn't an oil crunch stop growth in China?